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

To: Bwe who wrote (10624)	12/2/1998 6:36:00 AM
From: Sam Quentin	Respond to of 34823

Hi Bruce, As a dedicated lurker to this thread, thanks for the update on DIS. Had my eye on that one. I also have been looking at ELNK. Showed strength yesterday but the chart still looks somewhat bearish. Can you give it a look. Thanks, Sam

To: Bwe who wrote (10624)	12/2/1998 8:56:00 AM
From: Lyn Benson	Respond to of 34823

To all, (esp. bullish triangle lovers), you might want to take a look at ACO, looks like a positive breakout at 11.5, Chartcraft indicated a breakout, with po of 21, I believe.They make chemicals used in liquid absorbing materials (baby diapers, etc) and are in non-ferr metals sector. Please correct my interpretation if I'm off-target. Also, could someone take a look at chart for LSCC and let me know if they are familiar with fundamentals? They are presenting at the conference today. Thanks!

To: Bwe who wrote (10624)	12/2/1998 11:10:00 PM
From: Smooth Drive	Read Replies (1) \| Respond to of 34823

Hello Bruce, Here's a little chart to go along with your comments this morning relative to DIS. There was a typing error in your analysis as the Bullish Resistance Line is at 37. You also mentioned price objective but didn't get a chance to include it. You and I both use Chartcraft's system of using the first column of the bottom, rather than the breakout column for figuring the bullish price objective. In this case there are currently 9 X's in the first column of the bottom. Since there is no reversal down yet this will be what Chartcraft calls an "Incomplete" count until such time as a reversal occurs. Vertical price objective is calculated by taking the count times reversal requirements times box size plus lowest O: ((93)1)+ 23 = Incomplete Bullish Price Objective of 50. Bruce's analysis below. 45 44 43 * 42 X * 41 X O * 40 X O X * 39 X O X O * 38 X O X O * 37 X O X O * + < Bullish Resistance Line 36 X O X O * 35 O O + * < Bearish Resistance Line 34 O + 33 O + X 31 O X * X ? 30 O X O * X ? 29 O X O * X ? 28 O X O X ? 27 O X O X X * < High Pole would occur here 26 O O X O X * < Short Term Down Trend Line 25 O X O X 24 O O X 23 O 22 21 20 JXM and Judy, Your read of DIS was right on the money and I always enjoy your p&f analysis. I wanted to add my two cents with regard to trendlines, a vertical count po, and a suggestion of a potential Bearish Signal Reversal that is shaping up in a modified fashion. By the way, my family went to see "A Bug's Life" this Saturday and we loved it. While I would call "Toy Story", the first Pixar/Disney collaboration a ** classic, "Bug's Life" is a * 1/2 family classic and a movie that has a ton of heart. This movie is going to have legs and is going to make a ton of money. The Bearish Resistance Line (BRL) for DIS is at $35. A Bullish Resistance Line (brl) is at $36. A classic Bearish Signal Reversed pattern requires 7 columns to complete and breaks the previous tops in the final column. At $29 for the first move in November, DIS had a 5 column Bearish Signal Reversed modified pattern. DIS broke the Short Term Downtrend Line (STDL) and the stock made a good move to $33. This provides another example of how revised trendlines can get you into a stock sooner and can indicate a trend change earlier than a break of the conventional trendlines. A broken brl at $31 looks like it can provide good support and I like the way Disney's chart is shaping up. The BRL has been in charge of the chart since the July, $40 top, and the BRL needs to be broken to establish a new uptrend. A buyer between $28 - $31, a range where I believe it's OK to begin or add to an existing position, would buy on the belief that the BRL is going to be taken out and a new uptrend is going to resume. AS Jori pointed out, the fundamental news from their movie division is quite bullish and could add to DIS' bottom line in a meaningful way. A High Pole would occur on a reversal to $27, and would call into question the recent bullish chart action. The more patient approach would be to wait until the BRL break to take a position in the stock. Judy, I'd be most interested in your approach to DIS from a longer term perspective. Take care, Bruce