From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #95 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk canslim-digest Saturday, January 24 1998 Volume 02 : Number 095 In this issue: Re: [CANSLIM] 1/22/98 results [CANSLIM] Re: Why is the Japanese Mkt going up? Re: [CANSLIM] Cup and Handle Definition [CANSLIM] Fw: SMTK (from DG Online Tech Support) [CANSLIM] What group is a stock in? Re: [CANSLIM] What group is a stock in? [CANSLIM] Ask for Input on 4 stocks Re: [CANSLIM] Ask for Input on 4 stocks [CANSLIM] Re: Re: [CANSLIM] Cup and Handle Definition Re: [CANSLIM] LTBG Re: [CANSLIM] Ask for Input on 4 stocks [CANSLIM] Superbowl? Re: [CANSLIM] LTBG Re: [CANSLIM] Ask for Input on 4 stocks Re: [CANSLIM] 1/22/98 results ---------------------------------------------------------------------- Date: Fri, 23 Jan 1998 17:23:34 -0500 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] 1/22/98 results At 22:27 1/22/98 -0600, you wrote: >Well gang, I've started '98 with a bang. > >and the chart looked good >the last >couple days. Does anyone see anything which could have foreshadowed today's >move? > >Thanks, > >Dave Cameron >dfcameron@ameritech.net A couple of things stand out to me.... * - Down since early Dec. 25%, * - Group being dragged down by the whole Technology sector. ( Technology is competing with precious metals for last place performance.) * - I like price to stay within 10% of a prior new high in any correction, otherwise it is a gamble as to whether the price will regain it's 100 dma. * - Did they fit the canslim critiria? I have 2 of their drives at home, two at work and 8 more on various servers, but would not consider the stock a canslim candidate. But I could be wrong! I often am, plan accordingly. Frank Wolynski - - ------------------------------ Date: Fri, 23 Jan 1998 18:44:04 -0500 From: "Tom Worley" Subject: [CANSLIM] Re: Why is the Japanese Mkt going up? Expectations of even more action to stimulate and strengthen the economy, possibly including some true economic reforms that the JA govt has been opposing. Also IMF has been imposing serious reforms on the countries they are bailing out, most recent noteworthy was Indonesia, where they made the ruler get rid of family and friends that were running many cos. Since much of Asia are important trading partners with Japan, as they recover this adds to Japan's economic strength. Plus, it was likely oversold. 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: Kam Por Yeung To: canslim@lists.xmission.com Date: Friday, January 23, 1998 8:43 AM >Does anybody know why the Japanese market is going up lately? > >- > - - ------------------------------ Date: Fri, 23 Jan 1998 18:50:32 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Cup and Handle Definition To add one WON view I learned from his staff, he considers a 25% retrenchment from a big move out of an established base to be healthy, but if the retreat is over 50% of the most recent move from a base he stays away. Thus, in a cup and handle formation, the depth of the cup also matters, 5 or 10% is usually not enough to shake out the profit taking and disbelievers, while 50% is too much. 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: Patrick Wahl To: canslim@lists.xmission.com Date: Friday, January 23, 1998 11:58 AM Subject: [CANSLIM] Cup and Handle Definition > From: "James Adams" > Patrick, when I look at the chart of ANLT it appears to meet the criteria of > WON. I will admit that it occurs during a small time frame, 15 days. Is this > why you don't think it is a C&H? I'm still trying to learn. As I public service, I will repost (retype actually, this time I'm saving this) a message on the C&H pattern that I've posted here a few times, from the March 1995 issue of Technical Analysis of S & C. Anyone who has been on this list a while has seen this and can skip it. This does seem to be a much better definition than anything O'Neil has in his book. - ----------------------------------------------------- "The cup of the pattern typically forms during intermediate-term market corrections and is usually 3 to 6 months in duration, but can be as long as 12 months during bear markets or as short as seven weeks during bull markets. The left side of the cup is a downtrend correcting the previous uptrend. The stock price bottoms and begins to advance, forming the right side of the cup. "During the formation of the cup's right side, the stock becomes subject to profit-taking at its old highs - the beginning of the cup formation - from sellers who bought at the cups bottom. In addition, investors who bought the stock near its old highs on the left side of the cup are anxious to sell." "The handle of the cup is usually more than one or two weeks long and should drift down on very low volume and form in the upper half of the pattern, preferably the upper third. A handle that drifts lower is important because it indicates that enough disbelievers are still active at that point. "... At this point, the volume should be light, indicating a lack of sellers. During the formation of the handle, new buyers step in and smart money adds to their positions, supporting the stock. When the stock breaks out from its handle, volume must surge by 40% above its avg. daily volume to confirm that demand is present at the stock's earliest emergin point." "Handles may also form slightly in new high ground [sic] when the right side of the cup drives somewhat higher than the cup's left side. ... Whatever the variation, the breakouts above the handle's high - the high on the right side of the cup - is what the investor wants to buy, which may or may not be a new high for the stock." - - - - ------------------------------ Date: Fri, 23 Jan 1998 18:52:18 -0500 From: "Tom Worley" Subject: [CANSLIM] Fw: SMTK (from DG Online Tech Support) Well, here's their response. Of course, still begs the answer why this was not updated several months ago. 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: Customer Service To: 'Tom Worley' Date: Friday, January 23, 1998 1:10 PM Subject: RE: SMTK >Thank you for the follow up email. Our research department had this >information updated for the upcoming week. The fundamental data is updated >once a week. The capitalization is 16.4 Mil. and the float is 66%. Funds >20%, Banks, 6% and Mngt 23%. > >Thank you, >Daily Graphs Online > >-----Original Message----- >From: Tom Worley [SMTP:stkguru@netside.net] >Sent: Friday, January 23, 1998 8:53 AM >To: custserv@dailygraphs.com >Subject: SMTK > >As a follow up to my earlier query on your data on Smart Talk (SMTK), I >checked filings at the SEC today and note that the 10Q dtd 11/14/97 shows >16,464,300 shares outstanding, and an 8K dtd 1/15/98 shows another 4.8 >million shares being issued for an acquisition. There were several other 8K >reports that I didn't examine that may have increased this number even >further. It appears that the DG Online data is at least six months out of >date. > >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 > - - ------------------------------ Date: Fri, 23 Jan 1998 16:36:42 -0800 From: "John R. Allen" Subject: [CANSLIM] What group is a stock in? Does anyone in this group know of a web site that I can find out what industry group a particular stock is in. The sites I know of such as Dreyfus have industry groups but you first have to know what group the stock is in to look at all stocks in the group. I want to be able to key in a stock and then find out what group it is in. Any ideas? John R. Allen - - ------------------------------ Date: Fri, 23 Jan 1998 19:42:15 +0000 From: "Nelson E. Timken, Esq." Subject: Re: [CANSLIM] What group is a stock in? > Does anyone in this group know of a web site that I can find out what > industry group a particular stock is in. The sites I know of such as > Dreyfus have industry groups but you first have to know what group the > stock is in to look at all stocks in the group. I want to be able to > key in a stock and then find out what group it is in. Any ideas? > John R. Allen > try http://www.investorama.com or the finance section of www.yahoo.com (finance.yahoo.com) Nelson E. Timken, Esq. Queens, N.Y. - ---------------------------------------- Email: netimken@erols.com Visit my new website at: http://www.geocities.com/wallstreet/5791/index.html Or: http://www.geocities.com/heartland/plains/3065/index.html - - ------------------------------ Date: Fri, 23 Jan 1998 18:25:03 -0800 From: "John R. Allen" Subject: [CANSLIM] Ask for Input on 4 stocks I would appreciate input on the following stocks PHHM Palm Harbor Homes 91/94 A/D= B BTRY Buttrey Food 91/94 A/D= A BILL Billing Info 93/97 A/D= A LUV Southwest Air 93/93 A/D= A Thanks in advance for any comments on these ones John R. Allen - - ------------------------------ Date: Fri, 23 Jan 1998 19:32:47 -0800 From: dsutton1 Subject: Re: [CANSLIM] Ask for Input on 4 stocks John R. Allen wrote: > > I would appreciate input on the following stocks > > PHHM Palm Harbor Homes 91/94 A/D= B > BTRY Buttrey Food 91/94 A/D= A > BILL Billing Info 93/97 A/D= A > LUV Southwest Air 93/93 A/D= A > > Thanks in advance for any comments on these ones > John R. Allen > > - Albertsons is buying out Buttrey's at $15.50 per share. - - ------------------------------ Date: Sat, 24 Jan 1998 03:27:59 GMT From: musicant@autobahn.org (Dan Musicant) Subject: [CANSLIM] Re: On Fri, 23 Jan 1998 08:39:54 -0500, you wrote: :Does anybody know why the Japanese market is going up lately? : :- I don't know the whys and wherefores, however Nightly Business Report on PBS had a commentator on tonight who remarked emphatically that the Japanese Blue Chips have been doing very well indeed, and he thinks the general market there is likely to continue an uptrend. He thinks some other economies in the region will continue to heal but has concern over possible major trouble for China and even for Hong Kong, where a devaluation of their currency is seen as conceivable. Dan - - ------------------------------ Date: Fri, 23 Jan 1998 20:29:46 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Cup and Handle Definition > From: "Tom Worley" > To add one WON view I learned from his staff, he considers a 25% > retrenchment from a big move out of an established base to be healthy, but > if the retreat is over 50% of the most recent move from a base he stays > away. Thus, in a cup and handle formation, the depth of the cup also > matters, 5 or 10% is usually not enough to shake out the profit taking and > disbelievers, while 50% is too much. Thanks for adding that. That point was also in the article, but I accidentally skipped over that section when quoting. Here is his comment on the depth - " Many C&H patterns are 12-20% in depth, and can be as deep as 35-40% following market corrrections. Unless a bear market is present, depths of more than 45% are too excessive, making it difficult for a stock to successfully break out once the pattern is complete." - - ------------------------------ Date: Sat, 24 Jan 1998 04:33:35 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] LTBG On Fri, 23 Jan 1998 17:17:49 -0500, you wrote: :Does anyone see a c&h forming which started late october 97?? :Any thoughts on CANSLIM?? : :TONY ANTISTA : I have no idea why, but a beautiful chart was completely spoiled today. Yesterday's b/o just completely tanked to finish lower than the 3 week base. u/d is 3.7 Maybe some big holder dumped their shares?? Wahappen? Dan - - ------------------------------ Date: Fri, 23 Jan 1998 21:21:01 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Ask for Input on 4 stocks > From: "John R. Allen" > > PHHM Palm Harbor Homes 91/94 A/D= B Great breakout, already too extend, that is, more than 10% past pivot point. > LUV Southwest Air 93/93 A/D= A I think airlines have been the strongest group lately, but kind of got whacked on Friday. LUV looks like it is either giving us a chance to buy it at a lower price or is headed back down. If the transports reverse direction on Monday, might be worth a shot. The whole market seems so jumpy that I am not committing very much money to anything right now. - - ------------------------------ Date: Sat, 24 Jan 1998 10:22:50 -0800 From: "Ken Davidson" Subject: [CANSLIM] Superbowl? This is a multi-part message in MIME format. - ------=_NextPart_000_0053_01BD28B2.06464480 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable So I thought I would ask a poll on who thinks will win the superbowl on = the merit of the stockmarket. The indicator has been correct 27 out of = 31 years. If you think the market will be up this year then you must be = for Greenbay. If you think the market will be down this year you must = be going for Denver. Personally I'm watching just to see the = commercials, especially the chameleons beat up on the frogs! =20 Have a good one! =20 Ken=20 www.agoraoutlook.com The information contained in this commentary is based upon data that is = believed to be accurate, but is not guaranteed, and subject to change = without notice. All projections, forecasts, opinions, and track records = cannot be guaranteed to equal our past performance. Persons reading = this are responsible for their actions. Officers and employees of this = publication may at times have a position in the securities mentioned, or = related services.=20 - ------=_NextPart_000_0053_01BD28B2.06464480 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
So I thought I would = ask a poll=20 on who thinks will win the superbowl on the merit of the = stockmarket.  The=20 indicator has been correct 27 out of 31 years.  If you think the = market=20 will be up this year then you must be for Greenbay.  If you think = the=20 market will be down this year you must be going for Denver.  = Personally I'm=20 watching just to see the commercials, especially the chameleons beat up = on the=20 frogs!
 
Have a good = one!
 
Ken
www.agoraoutlook.com
The information = contained in=20 this commentary is based upon data that is believed to be accurate, but = is not=20 guaranteed, and subject to change without notice.  All projections, = forecasts, opinions, and track records cannot be guaranteed  to = equal our=20 past performance.  Persons reading this are responsible for their=20 actions.  Officers and employees of this publication may at times = have a=20 position in the securities mentioned, or related=20 services. 
- ------=_NextPart_000_0053_01BD28B2.06464480-- - - ------------------------------ Date: Sat, 24 Jan 1998 14:40:15 -0500 From: Craig Griffin Subject: Re: [CANSLIM] LTBG Dan, At 04:33 AM 1/24/98 GMT, you wrote: >I have no idea why, but a beautiful chart was completely spoiled >today. Yesterday's b/o just completely tanked to finish lower than the >3 week base. I agree it was nearly perfect - the "3 week base" is a great looking handle on the cup. A great setup, turns out it was for the sellers and not the buyers. Anything may have caused this. You suggested: >Maybe some big holder dumped their shares?? Could be. Here are some other thoughts: 1. The chart pattern was enticing and nearly perfect. Everybody could see that. Volume was very low - no buyers or sellers. So if you wish to dump some shares ... First, do some buying to "paint the tape" and attract other buyers. Also anticipate that there will be other buy/stop orders set at Datek and other brokers who allow the individual to set these in their computers. These buy stops and other breakout buyers and tape readers will all jump in driving up the price. Slowly sell into the rise. Also continue selling the next day as more buyers come in (who have seen the picture perfect breakout overnight). And get out of your position on the high side. 2. Maybe a bunch of confused sellers. A stock named Digital Lightwave (DIGL) took a huge hit yesterday due to some bad news. Did someone confuse it with Lightbridge LTBG)? Probably not many, but who knows. 3. Maybe there are some rumors or news about which driving the sellars that we haven't heard yet. Bottom line ... doesn't matter. Stock broke out. Breakout failed and it pulled back into base the next day. If you bought the day of the b/o and read the pivot as 18 1/2 say. Then you should have been out on Friday at 18 1/4 or 18 or 17 1/2. If you bought the day before at 19 1/2 or even on Friday at 20 1/4 - you should have been diving for cover as soon as the thing was clearly going against you by 5% or more (and that may have helped the selling as well. These things happen in Canslim. O'Neil says to be careful when it is too obvious. Note that the weekly chart now shows 3 down weeks in a row with rising volume each week - bearish! Also last week's candlestick chart shows a "bearish engulfing pattern". The daily candlestick chart shows "bearish engulfing" on Friday. The stochastics are not so hot either. I would be tempted to short it here EXCEPT I have a firm rule to never short a stock that is trading above it's 50 day moving average. (My goal is to SHORT after the stock has broken below the 50dma and then attempts to rally and fails to penetrate the 50dma on the rally - ie. bounces off of it from below. Similarly, my goal is to only BUY stocks that are trading above the 50dma and for which all the other CANSLIM elements are in place. This would have kept me out of IOM recently, for example, if for no other reason.) Best regards, Craig - - ------------------------------ Date: Sat, 24 Jan 1998 19:45:14 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Ask for Input on 4 stocks On Fri, 23 Jan 1998 21:21:01 -0800, you wrote: :> From: "John R. Allen" : :>=20 :> PHHM Palm Harbor Homes 91/94 A/D=3D B : :Great breakout, already too extend, that is, more than 10% past pivot=20 :point. : : : :> LUV Southwest Air 93/93 A/D=3D A : :I think airlines have been the strongest group lately, but kind of=20 :got whacked on Friday. LUV looks like it is either giving us a=20 :chance to buy it at a lower price or is headed back down. If the=20 :transports reverse direction on Monday, might be worth a shot. The=20 :whole market seems so jumpy that I am not committing very much money=20 :to anything right now. : Heard it said the airlines took a hit because the price of oil rose sharply =3D fuel. - - ------------------------------ Date: Sat, 24 Jan 1998 20:51:55 EST From: Ironheadmr Subject: Re: [CANSLIM] 1/22/98 results In a message dated 98-01-22 23:52:19 EST, you write: << They apparently reported earnings a week before DGOnline said they would. I just bought CHRZ (reports 1/29) and ATI (reports 2/5), so thanks for reminding me that I'm gambling. Mike >> As another form of caution, I friend of mine was day trading SPLH a week or so ago, and trusted the reports he read on when the earnings were to be announced that he saw published on the net...they reported 2 days earlier than "expected" and his position was promptly sawed in half. IMHO, look up the company profile in yahoo and call the company yourself to find when earnings are to be released. Let's face it, holding a lot of stocks these days across an earnings report has become akin to gambling...all other factors will be overshadowed by a "good" or "bad" report...just my 2 cents - - ------------------------------ End of canslim-digest V2 #95 **************************** 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.