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

To: Judy who wrote (8949)	10/22/1998 5:51:00 PM
From: Mr. BSL	Respond to of 34809

Don't know if it was posted. If you aren't currently subscribing to Chartcraft or DWA, you may want to search this thread using keyword "sector" about high noon on Wednesdays!

To: Judy who wrote (8949)	10/23/1998 6:09:00 AM
From: Bwe	Read Replies (2) \| Respond to of 34809

Good morning, Judy. Have you seen the ClearStation website? They have lots of good free TA capabilities that a technician would find helpful. I rarely venture out of my p&f charts, so most of what's there is of little interest to me. Anyway, there's a fellow there, Kennesy I believe his name is, whose stock picks are sent all over the internet. He recently shorted Gap Stores (GPS) and Chartseer informed me of the post. They have a message board forum there and I posted the following message that I thought you'd find interesting. Your thoughts, as always, are appreciated. The p&f chart of GPS, while not a thing of beauty, is close enough to revived long term support to make a worthwhile long purchase. The September correction in the market took the stock down through the Bullish Support Line that was drawn under 10/97 $17 low. The BSL was broken with two consecutive double bottom sell signals at at $56 and $51 in September, The stock foreshadowed good things to come with a Low Pole buy signal at $52 where the old BSL acted as resistance and turned back the stock. The stock actually gave another double bottom sell at $46, but turned right around and shot up 16 straight boxes to $62. The double top buy signal was given at $53. This allowed the stock to break throught the BSL once again and also break a Bearish Resistance Line (BRL) from a $66 high in August. Though considered technically invalid because this BSL was broken with a sell signal, this trendline still carries some weight as evidence by yesterday's bounce at $56. The old BSL is now at $55. The bullish price objective is $94.$53 is a price level to be concerned about in this column of O's as that would put the stock in a very bearish High Pole at the Bearish Resistance Line (HPB). A move to $53 would greatly increase the odds of GPS moving below a previous bottom which is $46. The official BSL is at $47.Yesterday, the Retail sector moved to Bull Confirmed status at 34% and this is excellent field position from which a strong group move can occur. A Bull Confirmed sector is not a sandbox for shortsellers. Long positions in leading stocks in the group with bullish RS are the best candidates to go long. GPS hasn't exactly set the world on fire in October with regard to it's RS. In October's 14 trading days, GPS has done better than the Dow on 7 days and has underperformed the Dow on 7. However, that's the stuff of which consolidations and pullbacks are made. GPS still has bullish RS and is the RS p&f chart is still in an uptrend. GPS has outperformed the marekt since May '95. It is doubtful that the Retail sector will make any kind of substantial move without GPS among the leaders of the group. The main coach for p&f chartists by the way, the NYSE Bullish %, also moved to Bull Confirmed status at 38%.The current market environment will allo only the most nimble of shortsellers an opportunity to make money. Regards, Bruce