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

To: Jerry Olson who wrote (14426)	2/22/1999 9:20:00 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 34816

Good morning Jerry..... Your friends at the LU thread seem to be restless again... Message 7956828 Further proof that we come from the monkeys.... the LU thread is the former missing link... That's what you get when you cross Cromagnon with Fraulein Frankestein.... As an illustrious character of SI, (which I won't name due to possible misunderstanding), once called this strange phenomenon... they are the Quasimodos of the Internet....<g>

To: Jerry Olson who wrote (14426)	2/22/1999 10:17:00 AM
From: Ms. X	Respond to of 34816

Note from Tom Dorsey. One thing that prevents me from buying in to too much of a rally here is the sentiment. At bottoms we usually see readings of around 30%. IN 1994 the bottom wa put in with 24%, 1990 it was 28%, 1997 was 32%, 1998 was 38% and its now 55%. The percent of 10 and High Low are low enough to put us in a short term rally but no net new buy signals ensued last week. When Favors says 11,000 on the Dow Jones, that's a big move and to do that it will have to be somewhat more broad than it has been of late. We will go long as usual with the Percent of 10 and High Low when they reverse up for short term trades with stops as usual. These two indicators are at very oversold levels and the High Low is a very good indicator for long positions. It is not as good for short positions when it reverses from above 70%. I will become more of a believer in the short term rally when the Option stock Bullish Percent comes along and reverses, and I'll believe 11M when the NYSE comes along. We'll play sectors as they reverse up and some stocks can be bought now like MCD, HD,BAX,OSSI,WCOM,C,AHP,CHCS, etc.etc. Many investors think the market is either or, black or white. There are many shades of gray and many right answers. I know nothing of Jerry Favors but I do know all methods of analysis work in the right hands. Many people follow him and I'm sure he is very good at what he does. I have out lines a game plan for our team that makes sense, is logical, organized and very workable. It is something that P&F craftsmen can embrace. It's not an all or nothing play like go totally long or totally short. It allows you to begin to scale in with the Percent of 10 and High Low reversing up and in the event it is very short term, stops will take care of that. If it is to be longer in nature the Option Stock BP will reverse up and signal something more lasting than short term. If it is to be long term in nature the NYSE BP will reverse up. Stops will help us manage our positions as well as scaling out when up 30% etc. You know the drill. Plans like this allow you to put your inventory that you will buy together now and as the indicators warrant, begin taking positions and executing your PLAN. This is along the lines of what an Army general might consider when planning an offensive on the enemy. His plan is well thought out to begin with and he knows what he will do if things go right and what he will do if things go wrong. Investing is the same. You must have planned out in your mind what you will do if the enemy, the market, gets the upper hand. Also what you will do if the enemy, the market, begin to succumb to your attack. I think I forgot to discuss sectors. We will watch for reversals in these 41 sectors we follow and will wage our offensive as this takes place. If the Dow Jones goes up 150 points today and tomorrow, it makes no difference, we have our plan and will execute it faithfully. In the long haul you will win the war. Tom Dorsey