|  JAN 1988

Letters to S&C

Letters to S&C Overbought/Oversold Editor, I read with interest the letter from George N. Bower on the Overbought/Oversold indicator, in which Mr. Bower referred to the indicator's publication as a possible ""con"" on the reader, or the reader's sensibility. I have incorporated the indicator into my own trading system with some success, but do not choose to rely on it wholly. I use the indicator to tell me what the likelihood of a substantial move in the general market is in the near future, not as a specific buy/sell signal, the use Mr. Bower apparently tested the indicator under. In mutual fund timing the indicator has a good record, having called the last three major moves of the market in advance by a period long enough to allow action in the form of trading out of downside investments and into upside investments. I would never think of basing a trade on the advice of a single indicator, preferring instead to find at least a little corroborating evidence before risking money. While I realize that this seems somewhat ""soft"" to all the heavily programmed traders, the action in mutual funds allows somewhat less heavy interaction in the market and saves time. I would like to extend to all of your readers the use of my bulletin board, Investment Heaven, for whatever use they may see fit (within the constraints of the law, of course!). The system is dedicated to the needs of the individual investor, and has been running for 11 months now. The BBS is available for no fee currently, and is on-line from 9:00 p.m. to 8:00 a.m. PST (Reno, Nevada time). The system accepts calls at 2400, 1200 and 300 baud, and has conferences set up for most investment types. The phone number is (702) 348-0998. Please do not call at times other than those listed; we anticipate going to 24-hour availability soon! Thank you for your fine magazine. I have enjoyed it immensely. LAURENCE D. HAMMER SYSOP, Investment Heaven BBS Reno, NV

by Technical Analysis, Inc.