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Onno,
You may be right, I've been wrong before and will be wrong again.
That's what my stops are for <G>. However, I can't help but notice
the similarity in the major U.S. indices trend channel patterns to the
Oct97 lows.
Jim
-----Original Message-----
From: Onno Goedknegt <goedkneg@xxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Saturday, August 22, 1998 9:23 PM
Subject: Re: Weekly Pick
>Jim,
>
>Thanks for your opinion and strategy.
>
>But I don't think we have seen the bottom of this correction yet.
>
>For the Dutch stock market the advance/decline and call/put-ratio
give more
>bad news for the near future...
>
>DJIA support 8300, when broken: price target 7300 (head&shoulder)
>S&P500 support 1060, when broken: price target 940 (head&shoulder)
>AEX support 1120, when broken: price target 920 (head&shoulder)
>
>Onno
>
>
>At 14:55 22-8-98 -0400, you wrote:
>>All,
>> A choppy week for the market in which my portfolio dropped a
>>little. However, I wasn't stopped out of any positions and now have
>>AOL, BBY, DELL, INTC, and SMOD stock, CPQ LEAP calls, and about 30%
>>cash. Also, the market action reinforced my thoughts that we have
>>seen the market low for a while. The Dow Jones Industrial Average
>>(DJIA), for example, is typical of the indices that I watch. It
>>dropped Friday to test the 8/5 and 8/11 lows and they held. In fact
,
>>it spiked through the bottom of the long term channel interday only
to
>>pull back and close well above the bottom of the channel. That's
>>another indication that we have seen the lows for this correction.
>>However, to play it safe, I'm going to stick with the large cap
market
>>leaders again this week. I may begin to add some small cap spice
next
>>week if we have a good week in the market. This week I'm going to
>>move to the Drug & Pharmaceutical group and pick Warner-Lambert
>>Company (WLA).
>> WLA at 71.8125 is in an Intermediate Term Up Trend Channel
>>(ITUTC) with the top at 90 1/8 and the bottom at 69. It's another
>>momentum play that hit an all time high of 85.9375 on 7/20/98. It
>>then pulled back to a low of 68.5 on 8/4/98 and has essentially
moved
>>sideways from there, getting close to the bottom of its ITUTC and
>>breaking out of its short term down trend channel Wednesday. It may
>>still move down a little more to touch the bottom of the ITUTC, but
it
>>also may not and this looks like a good entry point to me. The
>>PDI-MDI and directional movement indictors look like they are trying
>>to signal the start of a new short term up trend. The fundamentals
>>are OK with the price/sales a little high at 6.27, the debt/equity
>>good at 0.59, 7% insider ownership, good earnings and revenue
growth,
>>and a pipeline full of new products. I'll open a position Monday.
>>I'll set my target just under the top of the ITUTC at 90 and my stop
>>just under the bottom of the ITUTC at 68 3/4. I'll move the stop up
>>to under the bottom of the short term up trend channel just as soon
as
>>it forms <G>.
>>
>>Jim
>>
>>
>>
>>
>>
>>
>>
>
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