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

To: Mr. BSL who wrote (20392)	5/26/1999 9:26:00 AM
From: Augustus Gloop	Read Replies (1) \| Respond to of 34809

CMGI looks good here for a couple quick points. Better be nimble if you try.

To: Mr. BSL who wrote (20392)	5/26/1999 10:17:00 AM
From: mph	Read Replies (3) \| Respond to of 34809

Hi Jan. I have the Bulls @ 60.7%, Bears @ 28.6% & Sheep @ 10.7 hmmm.... no category for frightened puppies?<g> mph

To: Mr. BSL who wrote (20392)	5/26/1999 10:33:00 AM
From: Cheeky Kid	Respond to of 34809

Add me to the bears.....there goes the market....

To: Mr. BSL who wrote (20392)	5/26/1999 11:34:00 AM
From: Ms. X	Respond to of 34809

A review of what the reversal of the OPTI means. For those that have been with this thread for the past year, you have seen the reversal in this indicator at least three times. Either to the upside and to the downside. You probably know that just the reversal itself doesn't show the whole picture and you must take into account the rest of the indicators and the sector bell curve. I'm sure you do know however, that one must take this reversal seriously. For those that are new. The Optionable Bullish Percent, called the OPTI or BPOPTI, is a short term indicator determining the direction of the market. Usually, and I've not seen a case where this wasn't true, the NYSE BP (the Big Daddy of indicators) follows in the direction of the OPTI. As of now, the NYSE BP has not reversed down and isn't close to reversing down at this point. We watch the OPTI closely and govern our positions and trade stance on the direction of this indicator. If it is negative we know that the majority of trades will be to the downside. If positive the reverse. We also know the longer term picture may very well turn negative as well. You probably wonder about time. We don't think in terms of time. This reversal comes at 60% with support around 40%. That would be a 20% decline in stocks within the Optionable Universe, on Point and Figure buy signals. It doesn't tell you what that means as far as the Nasdaq or Dow just that the risk is very high. One can guess with a 20% decline in buy signals, the Nasdaq especially, will show the effects. At this time being margined would be unwise. Trying to guess bottoms would be unwise. Watch all of your positions to see if they break down on their charts and determine the best defensive action for your portfolio. Wheter selling, buying puts, selling calls, moving to Tahiti or painting yourself purple. Whatever works for you. Now, there will be rallies. Head fakes perhaps. What you need to see is if the rallies only create a lower top or do they actually break a top. If they only create a lower top and continually break bottoms, you have a stock in trouble. Check out the sector. If the sector reverses while the OPTI is negative, be very careful with stocks in that sector. Check out the RS. If it reverses down, you have a stock that is very vulnerable. The Dow can very well continue up in this atmosphere. This happened last year. The OPTI and NYSE both turned negative while the DOW continued to new highs. Why? It doesn't take much on the Dow to do that. But, the OPTI and NYSE monitor many more stocks than the Dow does. Don't let the Dow bug fool you. If you are a Piffer you watch your indicators. Those that have been around for the past year know they never lie - do they guys? This doesn't mean there aren't stocks to buy. Tommy suggested today that Utilities et al look pretty good. They don't move like the nets but they are steady, reliable performers that are worth considering. Don't get caught in hoping or wishing a stock up. Just be a machine and remember you are in control. You have today received information that tells you that things are stacked against the market. Obviously, you wouldn't want to do outrageously aggressive trades at this point. If you have questions, now that I have my laptop :-), by all means ask. This is a great time to learn about the Piff indicators. Might I suggest that anyone who has the time should seriously consider the Piff training event on the cruise to Alaska this August. You will never find a better way to learn PnF from one of the best teachers out there, our own Tammy DeRosier. If you can take the time, really consider it. You will be able to go over all of the events of the past three months and see how it all worked. Not often does the DJBB reverse too. Info on the cruise located at 204.232.40.6 Anyway, check those charts. Ask questions. Be safe. Jan I am