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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Bwe who wrote (8745)	10/16/1998 10:15:00 PM
From: Judy	Respond to of 34811

Good evening, Bruce The bullish action on the oil and oil services stock showed itself when the market turned up again, heavy buying the last 7-8 days. That SLB generated a Low Pole buy signal at 49 today is not surprising, it reports on Monday and a number of other oil services stocks will be reporting thru the week including HAL and NE, also favorites of mine in the sector. Note that DO reported today, met consensus estimates but said that 4Q would see lower revenues ... yet the stock rose 10 percent today. The time lag to ramp up in oil services and exploration seems priced into the sector, and value buyers are picking up the solid stocks on the dips. Selling climax ... occurs when a stock sells off so deeply that it's risk/reward ratio becomes compelling to value buyers and they come swooping down in swarms. So it was with the financials, CMB and MDW in particular are stocks I endorse as investments in the sector. As it happens, the selling climax point for MDW matched my proper entry point from its long-term chart. Typically a sharp V-shape bounce does not form a true bottom, but the series of anticipated rate cuts has altered the technical picture.