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

To: Jerry Olson who wrote (14750)	2/27/1999 4:21:00 PM
From: wizzards wine	Read Replies (2) \| Respond to of 34811

Hi Jerry, Looking at your read...I find you to read the charts quite well...However, shorting stocks with RS in X's ...well, just look at the BSL ...KLIC @ 20, INTC @ 97, and AMAT @ 49 Even with things getting more negative, they may well Bounce back up from the BSL... Just my thoughts my Friend, and then Who listens to Me???? Later Preston

To: Jerry Olson who wrote (14750)	2/27/1999 7:34:00 PM
From: Smooth Drive	Read Replies (4) \| Respond to of 34811

Hello OJ, Something I've been looking at (and the fact that conventional P&F doesn't provide better date records makes historical work that much harder) is revised trend lines when the NYSEBP chart is positive and negative. I've found that the first sell signal of a bottom is a terrific place to create a Revised Bullish Support Line (RBSL). And, these RBSL's can create a good place to go long when a chart pulls back to this general location -- provided the NYSEBP is positive. But, when the NYSEBP is negative, which it is big time right now, a break of the referenced RBSL is more often than not a harbinger of things to come. And, the chart will often end up at the "Official" Bullish Support Line and (depending on the chart and circumstances) may well penetrate this line. Let's take a peek at SOX: 430 425 X * < UBRL 420 X O X X * 415 X O X O X X O * 410 X X O X O X O X O * 405 X O X O X O X O X O * 400 X O X O X 2 O X X X X O 395 X O X O X O X O X O X O X O 390 X O X O O X O X O X O X O 385 X O O X O X O + O X O 380 X * O X O X + O X O 375 X * O O + O O 370 X * + + O 365 X * + O 360 X X * + O 355 X O X 1 + * 350 X X O X O X + * 345 X O X O X O X + * < Bearish Support Line 340 X O X O X O + * 335 X O O X + * 330 X O X + * 325 X O X + * 320 X X O + * 315 X O X + < Revised Bullish S/L * 310 X O X * 305 X O X 300 X C + 295 X + 290 X + 285 X + 280 X + 275 X + 270 X + 265 X + 260 X + 255 X + 250 X + 245 X + 240 X + 235 X + 230 X + 225 X + 220 O X + 215 O X + 210 O X + 205 O X + 200 O X + 195 O X + 190 O X + < Official Bullish Support Line 185 O + 180 + 175 170 The first sell signal in this major uptrend occurred on 12/11/98 at 330. It bottomed at 320 on 12/14/98 and reversed back up on 12/17/98. When the RBSL was taken out with the double bottom sell signal at 380 on 2/05/99 (and you know where the NYSEBP was) that spoke volumes for me. Yes there was another rally, but that kind of divergence I expect. I believe the Unofficial Bearish Resistance Line (UBRL) is in control of this chart right now. The chart is long term bullish (trading above its Bullish Support Line) and short term bearish (on a sell signal). Its first incomplete (it will be incomplete until there is a reversal up) bearish price objective is 290 (420-((132)5)) and its second incomplete bearish price objective is 225 (420-((133)5)). I won't bore you with the other indicators I'm comparing to my P&F charts but this slow Norwegian thinks these price objectives are legitimate. BTW, I note that when a chart exceeds a previous column (be it X's or O's) by 3 or more boxes, some folk's identify it as a High Pole or Low Pole. What in fact has happened is a potential High Pole or Low Pole exists. As you know, a Low Pole occurs when a column of O's exceeds the previous column of O's by 3 or more O's and then reverses up in a column of X's more than 50% of the column of O's. For instance on the above chart, the column of O's have a count of 13, and more than 50% of this number would be 7. So -- it has a potential low pole signal at 390. Likewise, a stock like say KLIC has a potential Low Pole signal at 31 -- and so it goes. Take care, Eric