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

To: Lee Lichterman III who wrote (8895)	10/22/1998 12:18:00 AM
From: Ms. X	Respond to of 34809

Hi Lee, Your question kind of goes back to similar questions concerning the Dow and NYSE BP. We did have an upturn with the NYSE BP (and I apologize but I won't have exact numbers here) and the Dow followed suit moving up fairly well. While the NYSE BP was bullish, the Dow was volatile moving within a trading range. The Dow sold off to almost the bottom of this trading range and the NYSE BP turned negative. That negative was short lived and it reversed positive. Now the Dow has broken out of the trading range and the NYSE BP has given a buy signal. Important notes. While the Dow moved back down to the bottom of its trading range, the NYSE BP made a higher bottom. This told us that while the Dow was declining the NYSE BP still had more stocks on a buy signal that it did the last time the Dow was at its lows. This told us that demand was coming in. Albeit volatile, but coming in. Being that the NYSE BP tracks more stocks than the Dow, it is more representative as to what is happening with most portfolio's. In answer to part of your question. When the NYSE BP turned negative we weren't that bearish because of the low level in fact we considered it somewhat (I don't want to say bullish but I can't think of the right word) interesting (?) - Well, it set up for a buy signal below 40%. A buy signal this low is very bullish. Could the Dow drop. You betcha. Drop because the NYSE BP is now back to bullish - no. One has nothing to do with the other. The Dow is due for a pullback to (off the top of my head) 8300?? Eekk. I'll do a better update on the Dow. If the NYSE BP reversed down again it still would be under 40% and in good position. If you are worried about the Dow 30 don't buy 'em. Otherwise, on any dips on the Dow, buy the SPY! Yum yum. Take care, Jan I am P.S. I hope the emergency wasn't anything too serious.