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

To: dennis michael patterson who wrote (9080)	10/26/1998 11:03:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34809

Hi Dennis, DELL did a long leg down to 41 then X's up to 57, O's down to 51, 52 to 59 X's up, O's 58 to 53, then X's 54 to 62... DELL has been on a BUY since the 58 this past week... not off the bottom, but look to get in on a pulll back to 55-57ish...with a target of 70ish the current resistance... JMHO Later Wizzie

To: dennis michael patterson who wrote (9080)	10/27/1998 12:42:00 AM
From: Dennis J.	Read Replies (2) \| Respond to of 34809

What saved DELL and many others? I guess the Greenspan/Rubin rate cuts. They appear to have been created in a hurry going into a weekend that looked to be ugly. Did they saved the over-leveraged banks and brokerages? Maybe. Anyway, the ensuing rally has been one of the best that I have seen. Buy signals everywhere as most believe a crash has been averted and major bottoms have been made. P&F tracks supply/demand. If you follow the discipline, you are into good stocks in good sectors, and enjoying the ride back up. Note, p&f doesn't say the worst is over -- it says people think it is over. And that may be enough. Anyway, best not to fight the p&f signals, as the BP indicators seem to be early enough to be useful. As Tom Dorsey says, play the hand you are dealt. We are also approaching the third year of the presidential election cycle, almost never a bummer year. As for DELL, if fundamentals are weakening for DELL or the sector, new p&f signals will be forthcoming. I just looked at the long-term TA's, including stochastics, money flow, on-balance-volume. While stochastics aren't strong, they aren't down-and-out ugly either. And both money flow and OBV look OK. Seems premature to say it's over for DELL, but many long-term support lines were violated. If money flow weakens from here, we may be entering a trading range. Time to buy weakness and sell strength? Appreciate your comments here and on other threads. Dennis

To: dennis michael patterson who wrote (9080)	10/27/1998 10:00:00 AM
From: Ms. X	Read Replies (2) \| Respond to of 34809

Hi Dennis. I see Wizzie answered your question to Nordby's analysis on Dell. ...Point & Figure: Reversed to the downside on Oct 20, 1998. A P&F upside reversal takes place at $58 1/2. Summary: Technical indicators have turned bearish. SELL! DELL COMPUTER CORP (DELL-Nasdaq) @ $52 1/2 Stop. Use a protective stop of $55 1/2. I had a good exchange with Lisa on the subject of Dell when the RS first reversed into O's. She was asking if the reversal in the RS was a commanding sell signal and if one should immediately exit Dell. The analysis isn't that easy. When the market is in such good position as it is now you can take a little more risk in your charts provided FA etc is still there. Dell reversed negative on the RS indicating it would start to under perform the market. For example. Under performing in a market going up 20% and the stock only moving up 10% is much better than a market going down 20% and the stock under performing the market by moving down 30%. Does that make sense? With Dell not giving any hint of a sell signal on its trend chart I recommended a hold at that time unless it broke down on its chart and then hedge. I didn't recommend a sell. If the market were in Bear Alert instead of Bull Confirmed and moving south like last May, my opinion and analysis would have been different, but it isn't. Currently Dell has given a buy signal and the RS is improving nicely. If Dell keeps this up the RS is sure to flip positive again. Short lived this one I think (reversal down that is). I think (this is just my opinion) Nordby took the RS turning negative as an absolute without taking into consideration market, sector and trend position. Dell can be bought on pullbacks. I think Wizzie set the parameters. I hope that helped Dennis. Take care, Jan I am