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

To: james ball who wrote (14822)	3/2/1999 3:30:00 PM
From: papi riqui	Read Replies (2) \| Respond to of 34811

Tom, a question about stock splits. You recall that on 2/16, you made a short call on CPWR after it completed a bearish catapult. Since then, the stock split 2 for 1. However, on the P&F chart, the bearish triangle formation has disappeared, replaced by a prior double bottom break on 2/5. Although the chart certainly is not positive, it now suggests that the stock looks less weak after the split than before--on the theory that a DB break is not as negative as a bearish catapult. In other words, if you looked at the 2 charts side by side, doesn't the pre-split CPWR looks worse than the post-split CPWR? Had I not been aware of the pre-split chart, I theoretically would not have been aware of the bearish catapult. So, do you just forget the pre-split chart as if it never existed and view the stock only as you see it now? How is your short call affected by this, if at all? Sorry if this is too wordy, but I'd appreciate your clarification. BTW, GNCI looks to have completed a bearish catapult today. With earnings due on Thursday, this could be signaling bad news. It has already come down quite a bit recently, but do you think today's action suggests further damage? Thanks, PR