Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ms. X who wrote (11895)	12/23/1998 12:03:00 AM
From: Ms. X	Read Replies (2) \| Respond to of 34811

Well, here we are again. I know other threads will love this and it will give them plenty of fat to chew on - so here goes... Whilst the Dow and Naz (with the exception of a couple of days) have been seemingly performing brilliantly, our indicators have continued to weaken. A yup. More sell signals than buy signals really outlining a narrow rally with selected stocks. If you have stocks that haven't been participating in this rally, you should be watching them every night for breakdowns. Rs in O's is a little scary right now. From here we watch for the short term indicators to reverse up signaling a change from defense to offense. Again, this reversal is a "flashing yellow light" not a "red light". Be cautious not panicked. Jan I am

To: Ms. X who wrote (11895)	12/23/1998 7:56:00 AM
From: james ball	Read Replies (1) \| Respond to of 34811

Keep in mind when evaluating the stocks in the RS Dogs one does not consider the chardt pattern. I know this deviates from our basic premise as the chart is an important part of the euqation but in this instance it is not. This is simply an answer to the Dogs of The Dow for those who use P&F as relative strength as we calculate it is used. I too would have a hard time buying aa if it was not in the RS dogs but as a package they have done well over time. Every year was not great as the Dogs did not have great years but over time the strategy makes sense for part of one's porfolio. In many cases just having to hold for one full year makes all the difference in the world as these are cyclical stocks. In the original Dogs, the dividend tends to hold the stock up but the RS Dogs are more momentum based. I like doing a combination of the two for a piece of the portfolio. Remember it's wealth we're building here, for fun, Vegas is the place to go. We alos have a strategy called the Sector 5 in which we simply buy a proxy stock, ie computers IBM, restaurants MCD, Chemicals ALD, etc, in the 5 lowest sectors at any time. The five positions are then held for one year as the Dogs are. It has done very well. The worst time it had is when gold got hung up in the doldrums for a couple of years but that's life on Wall Street. Overall it's done about as well as the Dogs. I hope this clears up the RS Dogs. Happy Hunting. You are all the best on this thread. Oh buy the way before the cameras began to roll yesterday on CNBC I had to say I was not shorting any of the stocks I was recommending. Tension was still high on that deal. Tom D.

To: Ms. X who wrote (11895)	12/23/1998 9:15:00 AM
From: wizzards wine	Read Replies (1) \| Respond to of 34811

"Edit as is see Tommy just answered, but I still do not agree" JMHO ...Thanks, I will call Tommy Today as the "Dogs of the DOW" were created for those that do not want to spend a lot of time on doing research... Yes they do out perform in general, however not using ones tools (P&F)is like closing your eyes when passing a long bomb, it's going to go long but what if you through it to the opposite team???Bad move, not having your eyes open, in my opinion. Later Preston