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Reality Check Charts a weekly feature
Chart Commentary by
Mitch Harris of the Reality Check newsletter
11/9/99:
Gateway Computer (GTW), Lyondell Chemical (LYO)
Gateway Computer (GTW):
Notice first how overbought the weekly
Stochastics and RSI are. RSI rarely moves much above 70%, but in this case
its above 80%.
Stochastics are approaching 100%, obviously a
level that cannot be exceeded. The ROC (Rate of Change) indicator is
showing a negative divergence by not moving higher with prices.
The price appears to be extremely extended and it
sports a very lofty 54 P/E ratio, in a business that has recently become
"commoditized" with give away computers. They still sell theirs
for $1000 and higher.
Overall, we see these expectations unreasonable
whether the general market keeps rising or not.
Lyondell
Chemicals (LYO):
Simply put, all of the intermediate term indicators shown on the chart
have turned higher.
The stock appears to have completed a secondary
bottom by turning higher after declining from 22 or so in a well defined 5
wave pattern.
Basic commodity companies have been acting well
against the market’s recent selling.
There has been some consolidation within this
industry, making LYO a potential takeover candidate.
13 insiders have made open market purchases in
the past 12 months.
It has a 6.67% yield, making it a reasonable
speculation.
Market
Trend Realities (MTR) is a Registered Investment Advisory
which manages personal, corporate, Trust, and retirement accounts on
a fee only basis. Several low cost, flexible management fee
arrangements are available. Investment Advisor, Mitch Harris has
studied the Point & Figure Charting Method under the direct
supervision of Michael Burke, Editor of the prestigious Investors
Intelligence research organization. Management is based on a unique
combination of technical analysis methods and tools which include,
The Point & Figure charting method, Elliott Wave Analysis &
techniques, industry group analysis, cycle analysis, Relative
Strength Analysis, Stochastics, and investor sentiment studies. MTR
offers a very uniquely structured managed mutual fund program using
the RYDEX family of mutual funds, which offer outperformance
potential whether equity markets are rising OR falling! Inquiries
are welcome by calling us at (513) 421-8737, or by email at: mtr@fuse.net
MTR also publishes a monthly investment newsletter called
"Reality
Check", which offers technical commentary on the
stock & bond markets, the Dollar Index, gold & gold stocks (XAU),
Treasury yields, utilities, investor sentiment, and Federal Reserve
policy. It also offers stock trading recommendations each month with
price targets, stop loss points and insider activity. There are 4
trading portfolios, including a short selling account (we are very
proud that our short sale recommendations have averaged 12.5%
"compounded" during the roaring bull market of the last 5
years). Short term market commentaries are updated on Tuesday and
Friday mornings, along with portfolio changes on this web page. They
are also emailed for free to anyone who provides us with their email
address. The regular subscription rate is $200 (US) per year. A
special first time subscriber rate of $139 is available to
viewers. Samples are available upon request. MTR will be happy to
send information on any of the above mentioned services. Please email
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Last modified: April 02, 2001
Published By Tulips and Bears
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