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

To: Hardline who wrote (11068)	12/9/1998 8:23:00 AM
From: james ball	Respond to of 34816

Hardline, your thought process was right but the chart is just getting going. It either goes up one more box for another buy signal or it reverses and gives a Shakeout both are good. It all depends on whether you are a trader or investor how you look at pulling the trigger. Looking at the short term indicators your decision might be right but I would still defer to the stock chart. One way out was possibly to sell the upper out of the money calls against the position going out to January. Possibly sell 1-3 of your position depending on how much profit you had in it. Also set stops under the stock so you could still participate in the event you were wrong in your assumptions of why the double top was formed. The reason you use charts is so they take do the evaluation of why things happen and you only need to know first is the stock sound and second is demand in control. It is in control here. Tom Dorsey