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

To: Judy who wrote (20462)	5/26/1999 5:07:00 PM
From: SFW	Respond to of 34810

So, are you looking to go short on CMGI or sell calls?

To: Judy who wrote (20462)	5/26/1999 7:01:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34810

Hi Judy, What I see happening with these nets is they have broken their major support line, the BSL and are moving towards the bottom of their trading band. The internet sector has reversed down and given another sell signal at 30%. The sector is coming close to its low of 28% made in April. What it looks like the nets are doing is coming down to the bottom of their trading band and to areas of support at levels seen in January. The good thing is this. If the sector goes below 30% and then reverses up, it will be in Bull Alert which is the best positioning for a sector. If at the same time the stocks have based at the bottom of their trading band their upside potential is huge. This is what I am looking for in the future but until then I see some more downside with the OPTI just reversing but I don't think it will be a slaughter as some are surmising. Here are the particulars of the stocks you asked about. Yahoo: On the 5 box chart it broke the BSL and a spread triple bottom and major support at 120. It then rallied up to 140 (?). This provides a good entry with the best entry around 160/165. The stop would be 180. I see a downside target of 105. ATHM: On the 5 box chart it broke th BSL and a spread double bottom and a major support level. It rallied today to 124 which is an OK entry for a put. Better entry at 150 but if ATHM showed weakness at 124 I wouldn't hesitate to enter. I see a downside target around 85 CMGI: On the 5 box chart broke the BSL by just a smidge today. It probably will bounce fairly well off of this line. We can almost say it came right down to the line. There is also additional support in the 165 area. If CMGI rallies to 220 that would be great for a short. Price objective would be back to this (165) area. The bottom of the trading band is around 114. I like YHOO and ATHM better for a short but I would love it if CMGI came down to the bottom of their trading band so I can pick them up there with calls. Things are weak now and even though the nets have sold off, this is the first time that the big net stocks have broken their major trend lines.