From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #75 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk canslim-digest Friday, January 2 1998 Volume 02 : Number 075 In this issue: [CANSLIM] Happy New Year! [CANSLIM] Changing your canslim subscription [CANSLIM] Stocks to learn by. Re: [CANSLIM] Question about Tradestation? Re: [CANSLIM] Intro: Jerry Joldersma Re: [CANSLIM] Question about Tradestation? [CANSLIM] follow-through day definition discrepancy Re: [CANSLIM] Watching these Wednesday [CANSLIM] Re: [Discount Online trading Re: [CANSLIM] Re: [Discount Online trading ---------------------------------------------------------------------- Date: Thu, 1 Jan 1998 01:09:40 -0800 From: Mike Lucero Subject: [CANSLIM] Happy New Year! Thanks to everyone I learned from this past year. Mike Lucero - - ------------------------------ Date: Thu, 01 Jan 1998 08:00:04 -0700 From: jeff@scrooge.csd.sdl.usu.edu (Jeff Salisbury) Subject: [CANSLIM] Changing your canslim subscription This is a monthly posting to the CANLSLIM group. Frequently, people sign up for the canslim list and then are overwhelmed by the volume of the email. There are two remedies for this problem: 1) You can leave our group, or 2) you can switch to the digest version which "conglomerates" many canslim messages into one large message. To change your configuration, email a message to: majordomo@xmission.com The remove yourself from the canslim list, write in the body of the email: unsubscribe canslim To add yourself to the digest version of the canslim list, write in the body of the email: subscribe canslim-digest For general help with majordomo commands, write in the body of the email: help If you need further clarification, write me directly at: canslim-owner@xmission.com Best Regards, Jeff Salisbury - CANSLIM list admin / owner - - ------------------------------ Date: Thu, 01 Jan 1998 12:00:08 -0500 From: Connie Mack Rea Subject: [CANSLIM] Stocks to learn by. - --------------27CB8D4FCDF95FB49283782B Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Members-- LOGN did make a nice move; however, there was no opportunity to get in. The significances of the OBV and MoneyFlow divergences are still intact. VSAT allowed a decent entry and a still more decent advance. You may wish to look at TAVI and BRMQ for the next trading day. TAVI is just a bit off its 12 month low. The 3|7|10 indicator just gave a buy. OBV and MoneyFlow show nice positive divergence with price. Volume is large enough if one is careful. BMRQ sits near a 12 month base. 3|710 looks about to give a buy. Here the OBV and MoneyFlow are not divergent. What makes the stock interesting is its sitting on the 12 month. base and buy indicators are biasing upward such that they ought to give a buy on the next trading day. TTNP: The positive divergences of OBV and MoneyFlow are still influential on TTNP's action. Such influence usually does not end abruptly; hence the interest for the investor. I day traded XIRC Wednesday for a half point. My reason for not mentioning it was that it was more risky than others mentioned. If you will pull up a chart, you will see that over a two year period XIRC had based at 9 four times. Only a month or so ago it again held at 9. Trades with not much else to go on are risky. Trades or longer term buys where there are positive divergences between OBV|MoneyFlow and price are much safer, so much so that one might even double down if the stock should retreat a half to three quarters of a point. TAVI and BRMQ, though trading stocks for me, are, because of their positive divergences, eligible for investment. AMD is looking better for investment, as is MU. An article in the December Barron's deserves a careful look. See page 20, "The trick in timing market bubbles." by Albert Edwards. My own particular interest lay in the last paragraph, p. 26. "In a gale, even turkeys fly. Buy Italian turkeys." There is, however, comment on Asian problems. I cannot relax knowing that rarely is the first cost for any corrective the last cost. I will trade the next three months always with an eye to Asia. Nothing can replace wide reading and thoughtful concentration, neither the sending of questionnaires to the living nor to the measuring of the radioactivity of the dead. Yet, I always feel the palooka when I must confront entities so overwhelmingly large and subtle. Connie Mack - --------------27CB8D4FCDF95FB49283782B Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit Members--

LOGN did make a nice move; however, there was no opportunity to get in.  The significances of the OBV and MoneyFlow divergences are still intact.

VSAT allowed a decent entry and a still more decent advance.

You may wish to look at TAVI and BRMQ for the next trading day.

TAVI is just a bit off its 12 month low.  The 3|7|10 indicator just gave a buy.  OBV and MoneyFlow show nice positive divergence with price.  Volume is large enough if one is careful.

BMRQ sits near a 12 month base.  3|710 looks about to give a buy.  Here the OBV and MoneyFlow are not divergent.  What makes the stock interesting is its sitting on the 12 month. base and buy indicators are biasing upward such that they ought to give a buy on the next trading day.

TTNP:  The positive divergences of OBV and MoneyFlow are still influential on TTNP's action. Such influence usually does not end abruptly; hence the interest for the investor.

I day traded XIRC Wednesday for a half point.  My reason for not mentioning it was that it was more risky than others mentioned.  If you will pull up a chart, you will see that over a two year period XIRC had based at 9 four times.  Only a month or so ago it again held at 9.  Trades with not much else to go on are risky.

Trades or longer term buys where there are positive divergences between OBV|MoneyFlow and price are much safer, so much so that one might even double down if the stock should retreat a half to three quarters of a point.

TAVI and BRMQ, though trading stocks for me, are, because of their positive divergences, eligible for investment.

AMD is looking better for investment, as is MU.

An article in the December Barron's deserves a careful look.  See page 20, "The trick in timing market bubbles." by Albert Edwards. My own particular interest lay in the last paragraph, p. 26.

    "In a gale, even turkeys fly.  Buy Italian turkeys."

There is, however, comment on Asian problems.  I cannot relax knowing that rarely is the first cost for any corrective the last cost.  I will trade the next three months always with an eye to Asia.

Nothing can replace wide reading and thoughtful concentration, neither the sending of questionnaires to the living nor to the measuring of the radioactivity of the dead.  Yet, I always feel the palooka when I must confront entities so overwhelmingly large and subtle.

Connie Mack - --------------27CB8D4FCDF95FB49283782B-- - - ------------------------------ Date: Thu, 1 Jan 1998 14:33:46 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Question about Tradestation? > From: PPNewell > Can anyone tell me what's available on tradestation as far as fundamentals, > and also how well the backtesting function works. Don't know anything about the fundamental stuff, but the backtesting capabilities are probably the most extensive available. The programming language is a Pascal like thing, with IF, WHILE, FOR etc., statements, plus numerous built in functions for the technical indicators. It is also very expensive and designed mainly for daytraders who monitor things all day. Tradestation allows you to put systems on charts, and then beeps at you when your conditions are met and generate a buy or sell signal. Of course, that means a data feed and some sort of hardware - more $$$. Any more questions, feel free to ask. - - ------------------------------ Date: Thu, 1 Jan 1998 14:33:46 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Intro: Jerry Joldersma > From: "Jerry & Tonia Joldersma" > Do suggestions of potential candidates exist in the past files of this > group? How do I find them? Do any members of this group compile and share > such a list from time to time? Or is this another naive question? Unless > I am hopelessly naive, I intend to begin researching candidates this coming > week and sharing names with the group. I post some picks from time to time as I find them. There is an online archive somewhere, but since the idea is to buy breakouts, most of what you find there would probably be pretty stale. - - ------------------------------ Date: Thu, 01 Jan 1998 18:21:09 -0500 From: Chris Subject: Re: [CANSLIM] Question about Tradestation? Patrick Wahl and anyone else, Happy New Year! Do you know how TS compares to Windows on Wallstreet Pro or Metastock? I have MS but the testing and data management is weak. Also no triger on lines like support. Would it be more worthwhile to buy tradestation or Advanced Get, if you know? Thanks, Chris H - - ------------------------------ Date: Thu, 1 Jan 1998 20:29:08 -0800 From: Mike Lucero Subject: [CANSLIM] follow-through day definition discrepancy In HTMMIS (both first and second editions), under "How you can Spot Stock Market Bottoms", WON says "Watch for the first time an attempted short-term rally follows through on anywhere from its third to tenth day of recovery. The first and second days of an attempted improvement can't tell you if the market has really turned, so I ignore them and concentrate on the follow-through days of the rally. The type of action to be looked for after the first few days of revival is an increase in total market volume from the day before, with substantial net price progress for the day up 1% or more on the Dow Jones or S&P Index." In last Friday's IBD "Educating Investors", the last paragraph says "After the Dow's next up day, watch for a follow-through on the fourth through seventh days of the attempted rally." Which is it? If it's the third day, then Tuesday would be it. After I double-checked both editions of HTMMIS, I started buying at the end of Tuesday. If it can't be until the fourth day, we haven't had the follow-through yet. Mike Lucero - - ------------------------------ Date: Fri, 2 Jan 1998 01:09:42 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Watching these Wednesday Under the new Order Display rules, all orders have to be displayed to the "market". Before this, a limit order might be shown on Selectnet, Instinet, Island, etc but not on NASDAQ, thus not to all investors or many BDs or brokers. Now, almost every order must either be immediately executed, or else shown. Thus, when I bot EPIQ it was trading 9.25 by 9.75. I entered an order to buy 500 shares at 9.5. The firm handling my order was not a market maker, and chose not to short the stock to me at my limit, so they gave the order to a market maker. They, in turn, represented me by going high bid at 9.5, so the "market" then saw a quote of 9.5 by 9.75. The risk here is that other potential buyers, seeing the bid go up, simply place mkt buy orders, take out the then low offer of 9.75, and the market moves away from me before anyone decides to sell at 9.5. And even if someone did decide to sell at 9.5 while I was still the high bid, it doesn't guarantee I would get the stock. If they sold at another firm, which was not then bidding 9.5, they could either sell the stock to the firm representing my order, or could match the 9.5 price themselves. As a rule, stocks that trade thinly, often because of small floats (EPIQ as an example has a 1.6 mil share float with an avg daily vol of about 18,000), will have larger than average spreads between the bid and ask. This is a natural dynamic of the market and reflects the BD's interest in covering any order they fill without losing money on it (e.g. they fill a mkt buy at the offer, then have room to go high bid and cover the shares they just shorted; they get a mkt sell, and then go low offer to get rid of this new inventory). The danger to a BD on a thinly traded stock is that a flurry of buy orders may leave him with a short position while the price moves higher, and the new bid may exceed the avg price he shorted the stock to fill the orders. The past several days on EPIQ suggests that this has been happening, offers have been going up even before the stock ever trades that price, suggesting to me that BDs are nervous about more buying without the chance to cover. I will rarely enter a mkt order on a stock with a spread greater than 1/4 pt. However, remember I have the advantage of real time quotes, and rapid access to the marketplace. In these cases, I will usually enter a limit then try to watch the stock closely to see which way the immediate trend is going. If against me, then I will change the order to a market order. I am reluctant to absorb the cost of a large spread going into a new position, or adding to an existing one. I will also use limit orders when a stock is moving around a lot, trying to play the volatility to get a better price. Of course, the risk in doing so is that the order may never get executed. I have missed many opportunities that got away, or paid a higher price than if I had initially entered a mkt order, that's the risk you take with limit orders on any exchange. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: David S. Pinhasik To: canslim@lists.xmission.com Date: Thursday, January 01, 1998 1:47 AM Subject: Re: [CANSLIM] Watching these Wednesday >Sorry Tom, could you explain the following in Novice terms, I just did'nt >catch it. > >David > >> Remember on >>microcap thinly traded stocks you don't have to eat the typically large >>spread. You can try to go in between with a limit order and under the new >>rules they have to show you unless you complicate it with special conditions >>like all or none (AON). > > >- > - - ------------------------------ Date: Fri, 2 Jan 1998 01:53:55 -0500 From: "sboone" Subject: [CANSLIM] Re: [Discount Online trading Discount Online trading I am looking for discount brokers, doing market and limit orders under $10.00 $8.00 would be great. feel free to make any sugestion or coments - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Friday, January 02, 1998 1:18 AM Subject: Re: [CANSLIM] Watching these Wednesday - - ------------------------------ Date: Fri, 2 Jan 1998 07:30:43 EST From: SACADS Subject: Re: [CANSLIM] Re: [Discount Online trading Me too! From all that I've looked at SureTrade seems to meet my needs. I prefer E*Trade but it costs more. My primary interest was in having the ability to have real quotes, research tools, and ability to get cash out if needed. I haven't made my mind up yet so if I'm missing anything someone please warn me. - - ------------------------------ End of canslim-digest V2 #75 **************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.