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

To: Judy who wrote (13846)	2/11/1999 8:17:00 PM
From: james ball	Read Replies (3) \| Respond to of 34809

Judy, the short term indicators which are the most important are the PErcent of STocks above their own 10 week moving average and the High/Low Index. These types of days have the most affect on the percent of 10 than anything else. Most of the rallies today were simply stocks going back up a long tail down and this is what makes lower tops generally. The short term indicators have marched down into the 30's which is where we ususlly expect to see them bottom out. Stocks can go above and below their 10 week moving averages very easily without giving buy signals or sell signals. Another day like today will certainly move these indexes back in the right direction but probably not a reversal. As I mentioned in the comment concernign the similarities to 1994 market, sector rotation will probably be most important this year than anything. As sectors move down to the 30% level or lower and reverse up there will be tremendous opportunity. I would have no problem buying, lets say, semi's stocks on a reversal in that index even though the NYSE BP is Bear Confirmed. Like 1994 the tech and drug stocks bottomed very early and were good plays while others went down. 80% of all NYSE stocks went down 20% or more in 1994 just at different times. It's going to be a fun year. Notice how utilities continued down today and bonds were flat. This is the fly in the ointment that 1994 had and 1998 correction did not have. It's just never easy which is what makes it so interesting. HEck my Internut portfolio went up 10% today, however it went down 30% over the last two weeks. Just happened to stop buy and saw something I might shed light on. Tom Dorsey