From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #181 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Thursday, May 22 1997 Volume 01 : Number 181 In this issue: Re: [CANSLIM] CANSLIM STOCK (SCOP) Re: [CANSLIM] CANSLIM STOCK (SCOP) Re: [CANSLIM] DG Online Reports updated by morning Re: [CANSLIM] EPS vs Rel Str Re: [CANSLIM] EPS vs Rel Str Re: [CANSLIM] EPS vs Rel Str [CANSLIM] invx Re: [CANSLIM] invx Re: [CANSLIM] invx TA & storage stocks (was Re: [CANSLIM] invx) [CANSLIM] LL to UR ? Re: TA & storage stocks (was Re: [CANSLIM] invx) Re: [CANSLIM] XIRC Re: [CANSLIM] invx Re: [CANSLIM] invx Re: [CANSLIM] invx Re: [CANSLIM] LL to UR ? Re: [CANSLIM] XIRC Re: [CANSLIM] LL to UR ? RE: [CANSLIM] invx Re: [CANSLIM] LL to UR ? Re: [CANSLIM] LL to UR ? Re: [CANSLIM] LL to UR ? See the end of the digest for information on subscribing to the canslim or canslim-digest mailing lists and on how to retrieve back issues. ---------------------------------------------------------------------- Date: Wed, 21 May 1997 10:11:39 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] CANSLIM STOCK (SCOP) In a message dated 97-05-21 07:51:18 EDT, you write: << WON used to publish a list of the top 100 stocks in the NSMI book, if I remember right it was similiar to the top 100 stocks moving up in timeliness available daily at DG Online. One of the details I recall from the training that our WON acct exec gave us in reading graphs was that by the time a stock crosses into the top 40 group, it has only made on average a third of its move, if it continues to perform it has a lot further to go. tom w >> I've read this, too, Tom. I guess it depends on what one means by "move" and how long it takes to get from one place to another. At the beginning, of course, the slope is going to be pretty shallow and may take quite some time to get anywhere. As the stock attracts attention, the slope can increase dramatically and the price appreciate substantially in a relatively brief period of time. After that, the angle of the slope declines again and the rate of price appreciation subsides, though it's still positive. This is not a "fits all" scenario, but it does seem to be typical. My point is that very often at the beginning of that acceleration of slope, the IBD RS numbers will probably be, by definition, quite low, though the increasing relative strength can be detected with a charting program. Similarly, the IBD EPS rank may not be spectacular, though if the stock has been brought to one's attention, the acceleration in earnings per share or revenues or whatever may be detected long before IBD's rankings make the stock famous. - -------Db ------------------------------ Date: Wed, 21 May 1997 10:14:41 -0400 (EDT) From: PPNewell@aol.com Subject: Re: [CANSLIM] CANSLIM STOCK (SCOP) >>Watching SCOP In my opinion the chart looks very loose and wide. >>Ryan Prefers RS over EPS I am slowy finding out why a 75 EPS 99 RS stock will probably become a 99 99 stock, look at Dell, look at JPMX, ASVI, etc a 99 EPS <75 RS stock will probably become a <75 EPS <75 RS stock. Peter Newell ------------------------------ Date: Wed, 21 May 1997 10:20:28 -0400 (EDT) From: PPNewell@aol.com Subject: Re: [CANSLIM] DG Online Reports updated by morning FYI or IYC(if you care), the DG online reports are updated usually by morning Dell is a 99 EPS 99 RS. I like to start with the high RS's and work my way down. Hopefully filtering will be added. Peter Newell ------------------------------ Date: Wed, 21 May 1997 10:26:52 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] EPS vs Rel Str In a message dated 97-05-21 09:32:31 EDT, you write: << Here is something else to do to help you with your study. Take the Mutual Funds that not only beat the averages but BLOW them away. You can find what the top holdings of these funds are in several ways. In IBD daily they will list six different Mutual Funds. They will show their top holdings and show how they have done this year and last year against the averages. You will find something very interesting. Those that fall and lag WAY behind will NEVER own stocks with high Rel Str. The ones that BLOW the averages away will almost NEVER own a stock with a Rel Str less than 90. AND, no they didn't buy most of the stocks when the Rel Str was low and it has now moved up. You can do further research by contacting them and having them send you info. Then you can see exactly when they purchased what and you can look up what the numbers were on the stocks at the time of purchase. You can also see, even in IBD, which stocks are new adds and which they are adding to their current positions. Another interesting fact you will discover, the new adds and the ones they are adding to their current positons will have VERY HIGH rel strengths. When you understand this you will have your answer to the EPS vs. Rel Str issue. James >> Don't mean to quibble, but it's a bit more involved than that. One has to look at the periods during which the fund is claiming its outperformance, when it bought, what it bought, how much it bought, how long it held, etc. The very fact that a fund or given number of funds is buying a high RS stock (as defined by IBD) can, in and of itself, drive the price up. As far as the IBD "new adds" info, this can actually be quite out of date. If one uses this info to buy, one may be buying at or near the top in the stock. It's helpful to choose, say, a three-year period, find those stocks which outperformed during that period, then track their EPS and RS rankings from the beginning of the period on a monthly or bi-monthly basis up to the end of the period and match the rankings to their price slopes. As I said, no quibbling, just discussing. - ------Db ------------------------------ Date: Wed, 21 May 1997 10:34:28 -0500 From: "Brenda" Subject: Re: [CANSLIM] EPS vs Rel Str - ---------- > From: Dbphoenix@aol.com > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] EPS vs Rel Str > Date: Wednesday, May 21, 1997 9:26 AM > > In a message dated 97-05-21 09:32:31 EDT, you write: > > << Here is something else to do to help you with your study. Take the Mutual > Funds that not only beat the averages but BLOW them away. Another interesting fact you will discover, the new adds and the ones they are adding to their current positons will have VERY HIGH rel strengths. When you understand this you will have your answer to the EPS vs. Rel Str issue. > James > >> > > Don't mean to quibble, but it's a bit more involved than that. True! However,as I mentioned,it's a good "starting point". One has to look at the periods during which the fund is claiming its outperformance, > when it bought, what it bought, how much it bought, how long it held, etc. True. And getting more and more difficult to do as they are being allowed to include this managers record PRIOR to him coming to the fund and show it "as if" it were their record in the fund. > The very fact that a fund or given number of funds is buying a high RS stock > (as defined by IBD) can, in and of itself, drive the price up. As far as the > IBD "new adds" info, this can actually be quite out of date. True. And sometimes you may even find a stock listed as a new add has already been sold. Several times, I spotted a stock with a rel str of about 85 when all the others were 95 or higher. Aim Aggressive Growth chart gave me several winners in this way. Once I spotted a stock with less than 90 Rel Str, I looked at it hard. Almost invariably the rel str would move right on up and of course the price of the stock with it. Picked up a few from several others also. Seligman Comm A&D was another. The paper gives "leads". What one does with them determines whether they are successful or not. We have all tried many different approaches if we have been in this market long enough. Currently, I just don't have time to continue to search in that manner. Not enough hours in the day to do it all. If one uses this info to buy, one may be buying at or near the top in the stock. Or particularly the CANSLIM approach. It will almost always have you buying at or near the top. Seems to work though, over the long run. > > It's helpful to choose, say, a three-year period, find those stocks which > outperformed during that period, then track their EPS and RS rankings from > the beginning of the period on a monthly or bi-monthly basis up to the end of > the period and match the rankings to their price slopes. In the beginning I had investing much to complicated. Did too much unecessary work. Kept too many unnecessary records and charts. Time will force one to stop doing some things and hopefully, one chooses to stop doing the chores that are not absolutely essential. Did what you mentioned above. No longer do it. Find the stock, take the lead, then do my other homework. > As I said, no quibbling, just discussing. I don't quibble anymore. Not necessary. No time. Have had to stop that practice. State my opinion and or views and give stock suggestions and then move on. This am bought AEIS, TER, STDM and MWL. ALL will NOT be winners. > Have a good day. James ------------------------------ Date: Wed, 21 May 1997 13:03:16 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] EPS vs Rel Str In a message dated 97-05-21 12:53:01 EDT, you write: << And sometimes you may even find a stock listed as a new add has already been sold.>> Ain't it a pisser? <> Agreed, though many people even look as far down as 70. If everything else is there, there's obviously more of a move ahead than if it's already 99. << In the beginning I had investing much to complicated. Did too much unecessary work. Kept too many unnecessary records and charts. Time will force one to stop doing some things and hopefully, one chooses to stop doing the chores that are not absolutely essential. Did what you mentioned above. No longer do it. Find the stock, take the lead, then do my other homework. >> We all do, but I disagree that it's unnecessary. It's only after doing all this dogwork that we learn what works and what doesn't, and it's very often much different than what's supposed to work For myself, I have a lot more confidence in the fundamentals I look for, the patterns I look for, and the indicators I use, mostly because of all the fundies I focused on that turned out to irrelevant, the patterns that didn't pay off, and the indicators that either stated the obvious or downright lied. One appreciates CS far more if one has used other systems that regularly, if not constantly, lost money. - ------Db ------------------------------ Date: Wed, 21 May 1997 15:40:41 -0400 From: Jonathan Polito - Lucent ASCC Subject: [CANSLIM] invx Any news on INVX? it's tanking 6 1/8, down to 31 3/4. I don't own any, but it sure looked attractive at the breakout. - - Jonathan. ------------------------------ Date: Wed, 21 May 1997 21:45:10 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] invx Weakness in the storage sector. Take a look at WDC, QNTM, SEG, HTCH, HMTT, etc. At 03:40 PM 21-05-97 -0400, you wrote: > >Any news on INVX? it's tanking 6 1/8, down to 31 3/4. > >I don't own any, but it sure looked attractive at the breakout. > >- Jonathan. > > Johan Van Houtven CLICK! N.V. / Wilrijk, Belgium ------------------------------ Date: Wed, 21 May 1997 14:49:22 -0500 From: "Brenda" Subject: Re: [CANSLIM] invx Just another of those "shapes" that didn't work!!! James - ---------- > From: Jonathan Polito - Lucent ASCC > To: canslim@xmission.com > Subject: [CANSLIM] invx > Date: Wednesday, May 21, 1997 2:40 PM > > > Any news on INVX? it's tanking 6 1/8, down to 31 3/4. > > I don't own any, but it sure looked attractive at the breakout. > > - Jonathan. > ------------------------------ Date: Wed, 21 May 1997 19:32:31 -0400 (EDT) From: Zoran Mitrovski Subject: TA & storage stocks (was Re: [CANSLIM] invx) Johan responded to a question on INVX's move down: > Weakness in the storage sector. Take a look at WDC, QNTM, SEG, HTCH, HMTT, > etc. I had the time to take a quick peak at these and this is what I learned/concluded: SEG, QNTM, INVX, and WDC are (close to, or) hitting the supports on their upward trend lines in that order. SEG, QNTM and WDC have very similar daily charts with same frequencies of fluctuation and almost identical positions of peaks and bottoms on the time axis. SEG's phase is ahead (leads this process), then follows QNTM, and then WDC. SEG has broken it's support trend line today (bad news), but the good news is that it is the only one from this group that closed the day UP on volume twice as large as the highest volume for the year AND above its trendline. HYPOTHESES: 1. SEG is in the middle of its bounce off of its supporting trendline at around 42 1/2. 2. QNTM is about to bounce off of its supporting trendline at around 36 1/2 - 37. 3. WDC is on it's way down to its supporting trendline at around 57. 4. INVX is about to bounce off its supporting trendline at around 30. ACTIONS: 1. Buy SEG above 43 after confirming strong intraday demand TOMORROW. 2. Wait for QNTM to bounce off and if it does, buy it above 38 after confirming strong intraday demand. 3. Wait for WDC to bounce off and if it does, buy it above 59 after confirming strong intraday demand. 4. Wait for INVX to bounce off and if it does, buy it above 32 after confirming strong intraday demand. PROTECTION: Enter protective stops at no less than a point below the established trendlines. Enter each trade with a position that would lose 2% of your capital if the corresponding stop gets hit. NOTE: The charts show that these equities are highly correlated, as it should be expected for members of a same industry. Instead of entering separate trades on each of them, you could focus on one of them and watch the others for confirmation whether your hypotheses were right or wrong. SEG is presently the most important. If its support holds, then the chances of QNTM and WDC (and even INVX) following it by bounces increase substantially, hence you could enter a single trade with double or triple the previously calculated single position (4% or 6% allowable total loss of trading capital if stops are hit) that you fancy the most. Also, given the similar and established frequencies these stocks have, any of these trades, if successful, should be expected to last about a week or so. Let's see what happens. Also note that I am not trying to forecast or predict anything. I have answers for any line of possible events which means no matter what, I can say to myself that I was right. If I have the time maybe I will act upon the above plan of action (Since, I already did the work). Cheers, Zoran zmitrov@ee.rochester.edu http://www.seas.rochester.edu:8080/ee/users/zmitrov/home.html ------------------------------ Date: Wed, 21 May 1997 20:10:30 -0500 From: "Brenda" Subject: [CANSLIM] LL to UR ? Does it really, really work? Well, today was a "fair" test. The market did not do GREAT as anybody in it knows. The Wall Chart (which is a chart of stocks whose graphs are still pretty much intact, going from LL to UR) started today with sixty stocks on it. At the end of today, 30% of those stocks had closed down for the day. 8% of the stocks closed unchanged. 62% of the stocks closed UP for the day. So, if you simply had thrown a DART at THAT list you had over a 60% chance to have hit a stock that would have closed up for the day. Not a bad list to choose from. Now, the more impressive statistic is this. FORTY PERCENT of the whole list closed the day either at or equal to a NEW 52 WEEK HIGH. So, using a set of darts you had a 40% chance of hitting a stock that would close the day at a new 52 week high (AND most of those are ALL TIME HIGHS). To use just graph shape does not give those type of results. However, when you add in CANSLIM criteria then you can come up with a list like this. If anybody is REALLY interested in what they are E-Mail me and I'll share it with you. For quite some time now I have been saying that this market is NOT the type market that many of us have become accustomed to during the past seven years. To me it resembles the 94 market a LOT. Only a few more months will tell the story. I see lots of simularities. And, for those who have forgotten, 1994, was anything but a cake walk for picking stocks. Tomorrow, have some EXCELLENT buy candidates from this list. Bought a couple of them this morning and I have already shared that information. Out of the last nine trading days the average price of the stocks on the entire wall chart have closed at new highs SICX out of the NINE days. LL to UR works and it works in tough times as good as anything that I have ever seen. Have a good day and the type stock TC2000 is recommending tonight is MCH! Out of ALL the stocks in the market this is the ONE stock out of everything that they say is the place to be. Simply amazing ! James ------------------------------ Date: Wed, 21 May 1997 22:22:14 -0400 From: "Tom Worley" Subject: Re: TA & storage stocks (was Re: [CANSLIM] invx) Zoran, great analysis, glad someone had the time to do the review. However, I think you left off some important comments, some of which we discussed in this group a few weeks ago when someone remarked about the weakness in this sector. There has been insider selling in several cos, including WDC The entire group is weakening DELL's comments on computer component's prices softening, including storage devices, caused today's further decline The most recent analogy I can think of to what the drive mfr's are currently going thru is the networking group. Yes, they did eventually recover, but look how far they fell (and it was well below where anyone would have likely placed logical support). There has been an increase in inventories from extremely low levels to more moderate levels. There has been an acknowledgement of slowing growth rates PEs were running at extremely high levels for many, now far more moderate, so a bottoming may be close if growth doesn't slow any further. The group, including its leaders, is currently clearly out of favor. The mkt is currently overbot, contrasted to where the networking group finally bottomed out, with virtually the entire NASDAQ oversold, and esp so the networking group. Since I'm a risk taker, I intend to try and look at INVX among others to see if there is a chance for a quick bounce play on calls. But this group is in trouble at least for the short term. Remember, it will be mid July before we start seeing more earnings reports, and by then we will be into the summer doldrums as well as any effect from the Fed's FOMC meeting. tom w Any statements or opinions are strictly my own and not that of my employer. My comments should not be intrepreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. - ---------- > From: Zoran Mitrovski > To: canslim@mail.xmission.com > Cc: Zoran Mitrovski > Subject: TA & storage stocks (was Re: [CANSLIM] invx) > Date: Wednesday, May 21, 1997 7:32 PM > > Johan responded to a question on INVX's move down: > > > Weakness in the storage sector. Take a look at WDC, QNTM, SEG, HTCH, HMTT, > > etc. > > I had the time to take a quick peak at these and this is what I > learned/concluded: > > SEG, QNTM, INVX, and WDC are (close to, or) hitting the supports on > their upward trend lines in that order. > > SEG, QNTM and WDC have very similar daily charts with same frequencies > of fluctuation and almost identical positions of peaks and bottoms on > > Let's see what happens. Also note that I am not trying to > forecast or predict anything. I have answers for any line of > possible events which means no matter what, I can say to myself > that I was right. If I have the time maybe I will act upon the > above plan of action (Since, I already did the work). > > Cheers, > Zoran > zmitrov@ee.rochester.edu > http://www.seas.rochester.edu:8080/ee/users/zmitrov/home.html ------------------------------ Date: Wed, 21 May 1997 21:44:41 -0500 From: Luke Lang Subject: Re: [CANSLIM] XIRC Db, The insider buying is encouraging news but the chart does not look all that promising. Today appears to be a strong day but XIRC still closed below the 50 dma. I would prefer to see it test and hold the previous low before jumping in. If you have already bought, I wish you the best. Luke Lang Dbphoenix@aol.com wrote: > > Just in case anybody's interested, XIRC's breaking out of a demitasse on what > appears to be good volume. The cup's a little deep and the handle's not > quite high enough, but it's been resting on the 20 EMA for two weeks. Plus > there was insider buying last week. I'll take it. > > -------Db ------------------------------ Date: Wed, 21 May 1997 23:58:38 -0600 (MDT) From: Jeff Beckham Subject: Re: [CANSLIM] invx At 02:49 PM 5/21/97 -0500, you wrote: >Just another of those "shapes" that didn't work!!! >James > Oh but it did work!! If you bought at the breakout and sold with your 25% gain. :) Jeff ------------------------------ Date: Thu, 22 May 1997 00:00:17 -0600 (MDT) From: Jeff Beckham Subject: Re: [CANSLIM] invx At 03:40 PM 5/21/97 -0400, you wrote: > >Any news on INVX? it's tanking 6 1/8, down to 31 3/4. > I heard the whole storage sector took a dive after comments made by Dell about pricing in that sector. Jeff ------------------------------ Date: Thu, 22 May 1997 14:13:55 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] invx On Thu, 22 May 1997 00:00:17 -0600 (MDT), you wrote: :At 03:40 PM 5/21/97 -0400, you wrote: :> :>Any news on INVX? it's tanking 6 1/8, down to 31 3/4. :> :I heard the whole storage sector took a dive after comments made by Dell :about pricing in that sector. : :Jeff : Gosh. What *did* Dell say? At where can I avail myself of this wisdom? DM ------------------------------ Date: Thu, 22 May 1997 10:05:49 -0400 From: Hemant Rotithor Subject: Re: [CANSLIM] LL to UR ? Brenda wrote: > To use just graph shape does not give those type of results. However, > when you add in CANSLIM criteria then you can come up with a list like > this. If anybody is REALLY interested in what they are E-Mail me and I'll > share it with you. I should thank you for posting your picks to this group from time to time and I think they are a significant contribution. Reading your posts, I guess I have a fairly good idea about how you are picking your stocks, I am not clear about how you select the final buys from the list (are they just the ones with the top scores or do you use some subjective measures?), entry points (just a market order after you select a stock?), and exit points (a 15% stop loss on down side what about up side?). > For quite some time now I have been saying that this market is NOT the > type market that many of us have become accustomed to during the past seven > years. To me it resembles the 94 market a LOT. What kind of similarities do you see with the 1994 market? Why do you think it would turn into that one? > Have a good day and the type stock TC2000 is recommending tonight is > MCH! Out of ALL the stocks in the market this is the ONE stock out of > everything that they say is the place to be. Simply amazing ! The chart on this one stinks, when you say TC2000 is recommending, does it mean one of scans in there (based on what?) comes with this one? > James Thanks - -- Disclaimer: Opinions expressed in this document are those of the author. Digital Equipment Corp., 110 Spit Brook Rd, ZKO2-3/N30, Nashua, NH 03062 ------------------------------ Date: Thu, 22 May 1997 10:20:49 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] XIRC In a message dated 97-05-22 01:14:35 EDT, you write: << The insider buying is encouraging news but the chart does not look all that promising. Today appears to be a strong day but XIRC still closed below the 50 dma. I would prefer to see it test and hold the previous low before jumping in. If you have already bought, I wish you the best. Luke Lang >> True. However, with all the failed rallies and breakouts the past few weeks, esp off handles and bases (or if the breakout's genuine, it often gaps up to or beyond the 10% limit), I've been focusing more on breakouts from trend channels based on a slow stochastic and RSI. Given the current market environment, which will probably continue until next fall (though I'm not painting scenarios here), follow-throughs are increasingly rare, i.e., people are taking profits faster. This is not my preferred strategy, but I think it's important to have several, each of which can be applied according to whatever market conditions exist at the time. For example, my stops under purchase points are much tighter than they would ordinarily be. I also take smaller positions on the initial buy and pyramid more often than I otherwise would. If the stock isn't strong enough for me to pyramid, then there you are. At least by focusing on trend channels, I'm making money, and it's still within the boundaries of CS (though perhaps with its head over the fence). - -------Db ------------------------------ Date: Thu, 22 May 1997 09:59:48 -0500 From: "Brenda" Subject: Re: [CANSLIM] LL to UR ? - ---------- > From: Hemant Rotithor > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] LL to UR ? > Date: Thursday, May 22, 1997 9:05 AM > > > Reading your posts, I guess I have a fairly good idea about how you are > picking your stocks, I am not clear about how you select the final buys > from the list > (are they just the ones with the top scores or do you use some > subjective measures?), > entry points (just a market order after you select a stock?) Yes. ALL buys are at market. If I feel the need to split bid/ask or to only buy at some magic price then THIS stocks is not yet ready for me to be interested. I NEVER use limit orders. Once a stock is bought, I put in an actual stop/loss order close to the down 15% from the purchase price. Before placing it I look at the graph and see where this magic price falls. If by lowering the price $1 I will be below the lowest price the stock has been in six months then I place it there so as not to get shaken out. I used to an 8%, changed to 10%, then to 12% and now am using a 15% except for a "short" period of uncertainty with the FOMC. When I "feel" conditions are stable I will begin to move back to 12% and hopefully 10% stop loss points. I have TWO strategies completely separate from one another. One, "The System" goes by a RIGID set of rules. LOTS OF THEM. Almost all of the rules come directly from HTMMIS. "The System" NEVER violates any of the rules. The rules keep one from making ANY of the most common errors mentioned in Mr. O'Neil's book. "The System" grades each stock using EPS, Rel, Acc, Sponsorship, Group Strenth, and then two grades for the graph. It buys weekly when funds are available BUT it only buys when there are FIVE stocks grading out 95 or higher and it buys equal DOLLAR amounts of each. James' Picks goes more on the graph shape (aka price pattern) but it DOES pay attention to the same selection criteria used by "The System". If a stock doesn't make the grade because it falls short in one category I can ignore it in James' Picks. The interesting things is that, over time, I with all my astute buys and careful watching, and being able to buy and sell at any time in any amount have never beat "The System" which only buys on Monday and only sells when stop loss point is reached. Right now, since the first of the year there is $51 dollars difference in the two and "The System" has had a considerably LESS exposure, owned less stocks, many weeks has made NO purchases. , and exit > points (a 15% > stop loss on down side what about up side?). Never sell at the top. System only sells when stocks falls 15% from the high. If stock is down 14.8% it is still not sold. Use only end of day prices, never intra day on system. James' Picks (being so, so smart) gets ahead by anticipating moves in both directions. Ha! > > Have a good day and the type stock TC2000 is recommending tonight is > > MCH! Out of ALL the stocks in the market this is the ONE stock out of > > everything that they say is the place to be. Simply amazing ! > > The chart on this one stinks, when you say TC2000 is recommending, does > it mean > one of scans in there (based on what?) comes with this one? > NONE of my scans would have EVER come up with this stock. They actually have a write up telling what they think about different things. Once they had a portfolio, which did miserably, and has since been done away with. Picking stocks like this one I certainly understand. They continue to pick dogs, and short stocks like HBOC. They are saying AMD is ready for a fall. Maybe so, but to put actual MONEY saying that? I'd rather roll the dice in Las Vegas. And, I don't gamble. Oh well, hope this answers some of your questions and have sent to the group due to the large number of newbies. > ------------------------------ Date: Thu, 22 May 1997 08:15:55 -0700 From: "Nicholas P. Callahan" Subject: RE: [CANSLIM] invx - ------ =_NextPart_000_01BC6688.637AD130 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit It worked fabulously for me too! - -----Original Message----- From: Jeff Beckham [SMTP:jbeckham@vcn.com] Sent: Wednesday, May 21, 1997 10:59 PM To: canslim@mail.xmission.com Subject: Re: [CANSLIM] invx At 02:49 PM 5/21/97 -0500, you wrote: >Just another of those "shapes" that didn't work!!! >James > Oh but it did work!! If you bought at the breakout and sold with your 25% gain. :) Jeff - ------ =_NextPart_000_01BC6688.637AD130 Content-Type: application/ms-tnef Content-Transfer-Encoding: base64 eJ8+IgMPAQaQCAAEAAAAAAABAAEAAQeQBgAIAAAA5AQAAAAAAADoAAEIgAcAGAAAAElQTS5NaWNy b3NvZnQgTWFpbC5Ob3RlADEIAQ2ABAACAAAAAgACAAEEkAYA0AEAAAEAAAAQAAAAAwAAMAIAAAAL AA8OAAAAAAIB/w8BAAAAUQAAAAAAAACBKx+kvqMQGZ1uAN0BD1QCAAAAAGNhbnNsaW1AbWFpbC54 bWlzc2lvbi5jb20AU01UUABjYW5zbGltQG1haWwueG1pc3Npb24uY29tAAAAAB4AAjABAAAABQAA AFNNVFAAAAAAHgADMAEAAAAaAAAAY2Fuc2xpbUBtYWlsLnhtaXNzaW9uLmNvbQAAAAMAFQwBAAAA AwD+DwYAAAAeAAEwAQAAABwAAAAnY2Fuc2xpbUBtYWlsLnhtaXNzaW9uLmNvbScAAgELMAEAAAAf AAAAU01UUDpDQU5TTElNQE1BSUwuWE1JU1NJT04uQ09NAAADAAA5AAAAAAsAQDoBAAAAHgD2XwEA AAAaAAAAY2Fuc2xpbUBtYWlsLnhtaXNzaW9uLmNvbQAAAAIB918BAAAAUQAAAAAAAACBKx+kvqMQ GZ1uAN0BD1QCAAAAAGNhbnNsaW1AbWFpbC54bWlzc2lvbi5jb20AU01UUABjYW5zbGltQG1haWwu eG1pc3Npb24uY29tAAAAAAMA/V8BAAAAAwD/XwAAAAACAfYPAQAAAAQAAAAAAAACwWgBBIABABMA AABSRTogW0NBTlNMSU1dIGludngAlQUBBYADAA4AAADNBwUAFgAIAA8ANwAEAEEBASCAAwAOAAAA zQcFABYACAAPABcABAAhAQEJgAEAIQAAADQ1Q0U3RjMwQjVEMkQwMTFCODMxMDAyMEFGMDMwRTU5 AAEHAQOQBgAoBgAAIgAAAAsAAgABAAAACwAjAAEAAAADACYAAAAAAAsAKQABAAAAAwAuAAAAAAAC ATEAAQAAAMIAAABQQ0RGRUIwOQABAAIASgAAAAAAAAA4obsQBeUQGqG7CAArKlbCAABNU1BTVC5E TEwAAAAAAE5JVEH5v7gBAKoAN9luAAAAQzpcV0lOTlRcbWFpbGJveC5wc3QAGAAAAAAAAADPLi49 TqrQEbgSACCvAw5ZooAAAAAAAAAYAAAAAAAAAM8uLj1OqtARuBIAIK8DDlnCgAAAEAAAAEXOfzC1 0tARuDEAIK8DDlkTAAAAUkU6IFtDQU5TTElNXSBpbnZ4AAAAAwA2AAAAAABAADkAwIkiC8NmvAEe AHAAAQAAABMAAABSRTogW0NBTlNMSU1dIGludngAAAIBcQABAAAAFgAAAAG8ZsMK3TB/zkfStRHQ uDEAIK8DDlkAAB4AHgwBAAAABQAAAFNNVFAAAAAAHgAfDAEAAAAcAAAAbnBjYWxsYWhhbkB3b3Js ZG5ldC5hdHQubmV0AAMABhCh4wsYAwAHEDQBAAAeAAgQAQAAAGUAAABJVFdPUktFREZBQlVMT1VT TFlGT1JNRVRPTy0tLS0tT1JJR0lOQUxNRVNTQUdFLS0tLS1GUk9NOkpFRkZCRUNLSEFNU01UUDpK QkVDS0hBTUBWQ05DT01TRU5UOldFRE5FU0RBAAAAAAIBCRABAAAAOwIAADcCAAAmAwAATFpGdc5X OOEDAAoAcmNwZzEyNRYyAPgLYG4OEDAzM50B9yACpAPjAgBjaArA4HNldDAgBxMCgwBQoRB2cHJx MhF2fQqA2QjIIDsJbw4wNQKACoFsdWMAUAsDYxISC8QgKkkFQHcFsGsJgCBmhQGgdQkAdXNseRfg gwWxB4AgdG9vIQqihwqECoQLMGxpMzYBQKcWkAFAEsBvdAWQdBIEUDE2IC0cEk8FEGcPC4AHQAXQ B5BzYWdlPxwTGVYbJBrxCxMbJmktGDE0NAFAGnAxODBHAUAM0B+zYiBGA2E6lQyDYhFgSgERIEIF kAJrEQBtIFtTTVQQUDpqYiI0QHZj5G4uBaBtXRlVIOAGYCsCMCFHVwmAbgeQZGGMeSwF0CXgIDIx JgAQMTk5NyaQMDo1kDkgUE0kF1RvIUc+YwBxGnAjcADAAxAueDptBAFpAiAjwiQYdWJGahtRIUdS ZToikEMAQU5TTElNXSD5C4B2eB2/HsoadAu2GWNCQQVAMDI6NCcyIBQ1LyZgLybBLTA1+yBAJgB5 CGAXcBsiIUAZY7w+ShhQBUAAcBswaASQLCBvIgAzMG8RMCAiqnMRAHAHkCIzoWEFQNRkaSWQJxdk ITWgMkaPInAHkDJFGVRPaCAYEO0FQGk00zVVIBdAIgAxovEG4HVnaDLhBUAzMTeAuQlwYWsIYDLi F9BzBvC/OCE30DdwMaEFwA4wJRlUymcLcS44oDopGVoh0hcZXgqAE4EAP1AAAwAQEAAAAAADABEQ AAAAAAMAgBD/////QAAHMDAwkvjCZrwBQAAIMDAwkvjCZrwBCwABgAggBgAAAAAAwAAAAAAAAEYA AAAAA4UAAAAAAAADAAOACCAGAAAAAADAAAAAAAAARgAAAAAQhQAAAAAAAAMABoAIIAYAAAAAAMAA AAAAAABGAAAAAFKFAAC3DQAAHgAmgAggBgAAAAAAwAAAAAAAAEYAAAAAVIUAAAEAAAAEAAAAOC4w AAMAJ4AIIAYAAAAAAMAAAAAAAABGAAAAAAGFAAAAAAAACwAwgAggBgAAAAAAwAAAAAAAAEYAAAAA DoUAAAAAAAADADGACCAGAAAAAADAAAAAAAAARgAAAAARhQAAAAAAAAMAM4AIIAYAAAAAAMAAAAAA AABGAAAAABiFAAAAAAAAHgBCgAggBgAAAAAAwAAAAAAAAEYAAAAANoUAAAEAAAABAAAAAAAAAB4A Q4AIIAYAAAAAAMAAAAAAAABGAAAAADeFAAABAAAAAQAAAAAAAAAeAESACCAGAAAAAADAAAAAAAAA RgAAAAA4hQAAAQAAAAEAAAAAAAAAHgA9AAEAAAAFAAAAUkU6IAAAAAADAA00/TcAABlB - ------ =_NextPart_000_01BC6688.637AD130-- ------------------------------ Date: Thu, 22 May 1997 11:19:59 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] LL to UR ? In a message dated 97-05-21 23:13:38 EDT, you write: << The Wall Chart (which is a chart of stocks whose graphs are still pretty much intact, going from LL to UR) started today with sixty stocks on it. >> James, I apologize, but since I'm new here I have no idea what you're talking about. When you have the time, could you post or repost an explanation of this process you're going through? Thanks, - ----Db ------------------------------ Date: Thu, 22 May 1997 12:00:21 -0400 From: Hemant Rotithor Subject: Re: [CANSLIM] LL to UR ? Thanks for the detailed response James. A few questions: - -With your system, what is your average hit ratio? that is, from the stock you buy what percent have approximately gone up by the time you sell? - -It is interesting to note that you allow more latitude for the stock to go down (15%) in a volatile market whereas you tighten it up (8-10%) in a more stable market, One could make an argument for doing the opposite, that is put tighter stops in a more volatile market than a more stable one so that one does not loose as much and make a profit only when the charts are well behaved (this is what conventional wisdom would point to). I guess it a matter of how well one's picks behave in a volatile market and that we seem to have recovered rather rapidly from any slump in the last 10 years (no bear market or a crash, in which case the things would look different). - -- Disclaimer: Opinions expressed in this document are those of the author. Digital Equipment Corp., 110 Spit Brook Rd, ZKO2-3/N30, Nashua, NH 03062 ------------------------------ Date: Thu, 22 May 1997 11:50:36 -0500 From: "Brenda" Subject: Re: [CANSLIM] LL to UR ? - ---------- > From: Hemant Rotithor > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] LL to UR ? > Date: Thursday, May 22, 1997 11:00 AM > > Thanks for the detailed response James. > A few questions: > -With your system, what is your average hit ratio? that is, from the > stock you buy > what percent have approximately gone up by the time you sell? Two answers to this one. When I buy to SOLID companies, with solid chart patterns, with good EPS numbers, it would do me no good to tell you for it would be extremely hard to believe. When I pick speculative stocks the ratio is not as good but it is at least 50%. The ones that go up seem to go way, way up. I only need one to cover about 4 or five that go down. Hope I don't ginx them, but today, bought AVL, EVI, PACC and MWL. I would call only ONE of these solid and it is on the fence as to being called solid. The others I put into my speculative category. > -It is interesting to note that you allow more latitude for the stock to > go down > (15%) in a volatile market whereas you tighten it up (8-10%) in a more > stable market, The market fools most of the people most of the time. I find myself almost always on the opposite side of popular opinion and consensus. By following CANSLIM in any shape or form you are already way out there on a limb compared to the crowd. Have many analysts, stock pickers, guru's, TV commentators, have you ever heard recommend buying a stock hitting a new high. Just this morning firm downgrading a stock just because it hit "their" magic number as it breaks into new highs. (AMGN I think - didn't pay a lot of attention for I am not in that industry very much-Too low EPS, too volatile for me) > One could make an argument for doing the opposite, that is put tighter > stops in > a more volatile market than a more stable one so that one does not loose > as much and > make a profit only when the charts are well behaved (this is what > conventional wisdom would point to). I am not in this to not loose as much. Quite the contrary, I am in this to make as much as I can AND, when possible, hit a homerun, make a killing and do it on ONE stock a month if I can. I almost never swing for the fences. I go for singles. Occassionally will try for a double but never more. It's amazing how many inside the park homers the market will give you when you only wanted a single. Bought MTC and sold it already this week. Got into it with FOMC looming for safety but also "could" do well. Once that cloud lifted, got out of what I would call a very, very, very stable long term investment to go into three different speculative issues. > I guess it a matter of how well one's picks behave in a volatile market > and that we seem to have recovered rather rapidly from any slump in the > last 10 years (no bear market or a crash, in which case the things would > look different). When you have a list of 60 stocks that are averaging 25% plus closing each day at or equal to new 52 week highs all you need to do is hang in there. Sometimes, once the list is compiled I have actually thought about throwing a dart at the list to make my picks. Night before last, I was looking at 10 stocks to purchase from. I purchased four. Out of the entire list four of the ten went down. I now "owned" three of the four. Five of the ten closed at new 52 week highs. I owned ONE. Not that you live or die, sink or swim, in a single day but it is actually amazing how often that happens. However, they usually come back. It just "feels like" you left money on the table when you do that. Once again, hope this helps and answers some of your questions. > -- ------------------------------ End of canslim Digest V1 #181 ***************************** To subscribe to canslim Digest, send the command: subscribe canslim-digest in the body of a message to "majordomo@xmission.com". If you want to subscribe something other than the account the mail is coming from, such as a local redistribution list, then append that address to the "subscribe" command; for example, to subscribe "local-canslim": subscribe canslim-digest local-canslim@your.domain.net A non-digest (direct mail) version of this list is also available; to subscribe to that instead, replace all instances of "canslim-digest" in the commands above with "canslim". Back issues are available for anonymous FTP from ftp.xmission.com, in pub/lists/canslim/archive. These are organized by date.