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

To: Al Serrao who wrote (10592)	12/1/1998 12:48:00 PM
From: Bwe	Read Replies (3) \| Respond to of 34809

Good afternoon, Al. RMBS hit a low today of slightly below $84, so the stock is now just one box away from a Double Bottom sell signal at $83. In this current column of O's, RMBS moved into a HPT pattern at $90 and that strongly suggests a move below a previous bottom. That RMBS continues to have High Poles and is able to shrug them off and go on to make new highs, is a testament to the stocks very bullish RS (RS buy signal 8/25/98, and currently in X's). Since RMBS is in an incomplete vertical count situation, a sell at $83 would yield a po of $69 and the final count would be determined by how many O's end up in this current column of declining prices. Eric and I have been regularly using revised trend lines on our hand p&f charts and in RMBS' case, they are essential as a potential guide to where support might come into the stock. The BSL is at $61 and that's a long way from here. A Short Term Uptrend line is at $85 and it looks like this STUL1 was able to lend a hand to the stock today. STUL2 is at $71. For a longer term situation, I'd wait to see if the stock can avoid a sell at $83. If the stock does give a sell signal, I'd feel comfortable buying closer to STUL2 on major market weakness. For a short term trade, I'd wait for a reversal into X's, however, the HPT makes me a bit nervous about taking a poistion close to $90. I'd prefer to buy closer to STUL1 around $85-86 for a move near the old highs on market strength. Al, you and Judy have been correctly bullish on RMBS for at least a 50% gain as I recall. You've done a great job of finding a very good stock. Take care, Bruce