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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (9817)	10/25/1998 6:53:00 PM
From: Ditchdigger	Read Replies (2) \| Respond to of 29382

bigcharts.com <* Oil prices hit short term lows last week and rallied to close the week. The trend remains down and the fundamentals haven't changed to indicate that the oil sector may be ready for a reversal. Stocks tend to remain in a trend for much greater periods of time. Why fight the trend looking for a bottom in the oil sector ?> Sergio, please elaborate,as you can see from the one month OSX chart, the trend is not down, in fact it has been up and the sector has led the market in gains since bottoming.Short term it has reversed. Will it hold,damned if I know. But these companies are still making profits(most) and have plenty of cash, their PE's avg. around 10 compared to the PE's you mentioned. This sector is perceived as being defensive, and for now it appears strong bottoms have been put in (many double bottoms)..Granted things are slowing down but, there are many countering factors to consider...IMO DD

To: Sergio H who wrote (9817)	10/25/1998 7:10:00 PM
From: Ditchdigger	Respond to of 29382

PS: that said, I do have stops in place<g> ;^) DD While cruising, found this site investorama.com Lot of good links in one site..

To: Sergio H who wrote (9817)	10/25/1998 7:51:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 29382

Sergio: The FED rate cuts have changed the market psychological environment.... These positive technical indicators point to a market turnaround... We may have a dip after this recent run up, but the FED will do whatever it has to do to keep our market afloat... I've been averaging into Small Cap funds... McClellan Summation Index heading up... decisionpoint.com New Lows below 50 five days in a row... decisionpoint.com Advance/Declines turning around... decisionpoint.com The Russell 2000 is heading up... decisionpoint.com Jim