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Strategies & Market Trends : Point & Figure - Beginners (Real Green) -- Ignore unavailable to you. Want to Upgrade?

To: Tigress who wrote (16)	12/27/1998 12:37:00 PM
From: HighTech	Respond to of 322

As a "real green" newbie, I don't even have my training wheels - haven't evolved to that level. Sounds like your questions are intermediate level. Good questions though that anyone will be able to refer back to someday. Good to have your input. Sorry I can't help you at this time. HiTech

To: Tigress who wrote (16)	12/27/1998 3:03:00 PM
From: leslie jo	Respond to of 322

Tiger: I will make an attempt to answer some of your questions... Question No 1: I've seen this but could not find it again...cannot answer... Question No 2: To me, RS sell means the stock hasn't been doing well for some time. One would have to wait until it reverses back up into X's before considering purchase. If you look at Checkfree (CKFR)'s RS chart, it is RS Sell, however, it just reversed back up into X's which makes it worthy of consideration... Question No 3: Highlighted areas indicate week-to-week change in relative strength, otherwise it's daily changes... Question No 4: I also had this question and I emailed the following to jay@dorseywright.com and have not yet had an answer. Perhaps reversing into O's means a change to negative momentum on a daily basis...when it reverses back into X's on the DWA charts a positive alert signal flashes... "Is there a lag in your alert indicators? I noticed when eggs reversed into O's the momentum indication was positive. Then, on the 24th, eggs reversed back up into X's and now there's a negative reversal alert. Technically, eggs' momentum is still positive...is this correct?" Question No. 5: This first sign of a turnaround, in my opinion, is when it breaks through the bearish resistance line. Once this happens, then one can establish a bullish support line and hopefully the trend will be upward and onward. If it breaks through the bullish support line, then you have a stock in a downtrend and you have to establish a bearish resistance line, and these events keep flipflopping...hopefully it'll stay in an uptrend channel for awhile. With DD, you have a stock that is trading below its bearishRL and keeps knocking its head on that line. Essentially, its fallen (beneath the BullishSL) and can't get up (over the bearishSL)(g). RS is also still in O's. To be worthy of consideration, DD would have to break through the bearishRL and establish a new bullish support floor. It would also be best is RS reversed back up into X's as Checkfree is now doing. This has been lengthy...I hope it's helped...don't forget I'm a newbie Pnf'r... LJ

To: Tigress who wrote (16)	12/27/1998 6:05:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 322

Hi Tiger, I'll go through each of your questions to my best ability... 1) Ok, trend is positive if it's above the BSL and neg if it's below the BRL... Momentum is an internal number and based somehow on the sticitacal (sp) point of where the stock is now versas a period of time prior, I think...good question for Jay...but it's nice to get in to an issue when Momentum turns positive, as this last for several weeks in general... The weeks signal is self explanitory,,,number of weeks pos or neg... Ranking these as to a buying time...this depends on where the other market indicators are.... Remember 70% of a stocks move is the market and the sector, so if the market is topping you would want to stack all of the cards in your favor... ie, momentum turning positive, trend positive, RS in X's, and enter on a good pullback so that you get a very good risk/reward ratio, and a tight stop loss point... If the market is at the bottom, you will likely get the best bang from any issue that is still trend positive and still RS in X's, but many things will still preform well... We now are at a bullish Correction in the DJIA, meaning that you have a Flashing Yellow Light, and are in a column of O's...look for RS in X's, momentum turning positive and a good pullback, and look for sectors that are not too extended... Also look to the right side of the chart, the top, middle and bottom are refering to the trading band of the stock...be careful of playing issues at the top of the trading band until your are use to the issue's preformance. 2) A positive breakout has nothing to do with the RS...DD just gave a DTB signal at 56 which is the first buy signal since the one at 62 a while back. Notice on DD that it bounced down off of the BRL in the last try to break through and was not successful. 3)RS like the regular charts highlight any NEW Moves... 4) Again Momentum is calculated in a mathmatical way and so is not necessarily reflect a negative trend to come...ask Jay :-) 5) Not sure what you are looking for here, None of the Bearish signals give an indication of a positive turnaround...But a breakout from below the BRL to above is Bullish... Hope that all helped, Later Preston

To: Tigress who wrote (16)	12/28/1998 12:37:00 PM
From: leslie jo	Read Replies (1) \| Respond to of 322

You wrote: 4) On 12/21/98 EGGS had a TT, on 12/24/98 it had a Bull Catapult. On 12/24 EGGS' Momentum Reversed Neg at the same time it had a Pos Brkout. How is a Neg Momo possible? And could that ever be the first sign of a sell signal? ******* I received an e-mail back from Jay Ball @ Dorseywright concerning your above question. I asked him if reversal into O's would cause the change from positive momentum to negative momentum and if there was a delay when momentum change is posted. I asked the question because I noticed Eggs' momentum turned positive when it reversed into O's and momentum turned negative when it reversed back into X's into a bullish catapult formation. He stated the following: No, there is not a delay although some items like change in trend we will leave up for 2 days. In this case (Eggs) the momentum flipped negative with this week's calculation. The column of the chart has no relation to the momentum calculation. The momentum is a calcualtion using a 1 week and 5 week moving average which is weighted and smoothed. We then look for cross points. If the 1 is above the 5 then it is positive. jay LJ