From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #189 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Wednesday, April 15 1998 Volume 02 : Number 189 In this issue: [CANSLIM] portfolio Re: [CANSLIM] HYSW Re: [CANSLIM] MTRS [CANSLIM] M [CANSLIM] Entry & Exix Points [CANSLIM] MDLK [CANSLIM] tech stocks Re: [CANSLIM] Entry & Exix Points [CANSLIM] AACE and MINI Re: [CANSLIM] Entry & Exix Points Fw: [CANSLIM] NYSE New Highs Fw: [CANSLIM] BNYN, QMRK ..... Re: [CANSLIM] Entry & Exix Points Re: [CANSLIM] Entry & Exix Points [CANSLIM] HDWY [CANSLIM] Netscape? [CANSLIM] NAACO INDUSTRIES Re: [CANSLIM] Entry & Exix Points ---------------------------------------------------------------------- Date: Wed, 15 Apr 1998 11:09:31 -0500 From: "Ricardo Bekin" Subject: [CANSLIM] portfolio > Date: Wed, 15 Apr 1998 09:23:46 -0400 > From: olafur.josefsson@analog.com (Oli Josefsson) > CANSLIM with the rest ..? I have 3 portfolios (IRA, 401K and a regular > account) and have certain non CANSLIM core holdings but I have not > put a lot of thought in structuring my portfolios into CANSLIM vs > nonCANSLIM. I find it actually hard to have more than one hat > on, i.e. to mix investment styles, so perhaps I will just end > up mixing mutual funds, and index fund and CANSLIM. Any thoughts ? My retirement account right now is all in S&P 500 index funds. My trading account is 150% invested in small, CANSLIM-type stocks (with fairly tight stops). For anyone who asks for my advice I usually suggest: 1) 60 to 80% in S&P 500 Index Funds 2) 10 to 20% in "Dogs of the Dow" stocks 3) 10 to 20% in small, CANSLIM-type stocks Ricardo - - ------------------------------ Date: Wed, 15 Apr 1998 09:14:05 -0700 From: "Robert Venchiarutti" Subject: Re: [CANSLIM] HYSW This might be the kiss of death for this stock, but I bought it on 3/31 as well. - -----Original Message----- From: Peter Christiansen To: canslim@lists.xmission.com Date: Tuesday, April 14, 1998 9:50 PM Subject: Re: [CANSLIM] HYSW >At 06:48 PM 4/14/98 -0800, you wrote: >>You guys might want to look at Hyperion Software (HYSW), good >>numbers, strong group, looks poised to breakout from a sound base. > >Hope you're correct. I bought it on 3/31 and am impatiently waiting for it >to do something. > >Peter Christiansen >Chiang Mai - Thailand > >- > > - - ------------------------------ Date: Wed, 15 Apr 1998 12:03:07 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] MTRS > Date: Wed, 15 Apr 1998 21:03:54 +0000 > To: canslim@lists.xmission.com > MTRS is making new highs on big volume. > > Peter Christiansen > Chiang Mai - Thailand What service do you use to get quotes, being over there in Thailand? Just curious, not thinking of moving there or anything. - - ------------------------------ Date: Wed, 15 Apr 1998 16:07:29 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] M No failed rally this time, either. Another couple of weeks up, I suppose. Enjoy the ride. This is some market!!! Jeffry - - ------------------------------ Date: Wed, 15 Apr 1998 16:16:41 -0400 From: Connie Mack Rea Subject: [CANSLIM] Entry & Exix Points Members-- Several members have said privately what I see mentioned to the entire group: I am late getting in and slow getting out. May I suggest what I have said privately. As most of you know, I am not a follower of Canslim but rather a day/swing trader who has been made welcome--despite his failure to have seen the Canslim light. My criteria for buying are probably more restrictive than most traders; too, they are different in that my initial screening is based on my reading of OBV and MF. Though I have separate software for these readings, I have found that readings from BigCharts are so little different that you will not err if you use only BC. Because Canslim rules are arbitrarily conservative, you must expect to miss initial moves. E.g., the cup and handle configuration is powerful; and it is conservative. Its very shape absolutely requires that a stock passes from some arbitrary level, to a lower lever, and back to the original level. Beyond that, the figure requires a sifting out period [the handle]. When the stock breaks out from the handle [or any flat period], you must be prepared for a return to the break out point--irrespective of volume. I have noticed comments about a breakout [and frequently false breaks] giving a nice gain that was lost when the stock fell back, often to a place below the handle. Not only was the gain erased, but a loss resulted. From just a casual look at several Canslim choices, I see that a stock with Canslim prospects could be bought earlier. E.g., once you find a good prospect, consider making an entry [1] before the cup is completed or, if not then, [2] before the handle completes. You could let the chart pattern dictate your entry point. You could elect to use an EMA indicator as your guide. BigCharts lets you set your three number EMA. I use a 3/7/10, which is pretty quick, perhaps too quick for most. I have suggested a 5/10/15 as an EMA more conservative; however, there is not much different between the two. A 10/15/20 EMA would be quite safe in most instances, especially if you wait until the 15 lines passes through the 20. The larger the EMA, the later your entry. It is best to back test each of these. The more Canslim requirements, the later your entry. One member asked recently if anyone had ever seen a pure Canslim stock; he thought he had not. To me, this suggests that either there are too many requirements or that there should be permitted qualifying amendments. Other members suggest that there is not sufficient clarity as to when each requirement is met. Tom probably knows as much about Canslim as any member; yet he often must offer up opinion rather than dictum about when rules are met. Too, different sources may give different numbers. From my conversations with Tom, I believe it is fair to say that he does not unequivocally adhere to Canslim rules. I would not expect someone with his experience to do otherwise. Tom has spoken to the group about is own occasional day trading. Experienced traders and investors are like pilots who on a good VFR day just fly by the seat of their pants when they know the territory. I have good radios and VFR/IFR maps, but some days I just like to fly. Experienced traders and investors don't forsake all the rules, but sometimes the rules are set aside. But neither gets careless--like the destroyer captain who wrongly set his depth charges and blew up the boat. One way to avoid getting non-plussed about meeting all the Canslim rules is to set a weight to each principle such that they total, say, 100. E.g., I heavily weight my OBV/MF indicator such that if both criterion are not met, I don't buy [except when I take a flyer and fly by the seat of my pants]. If the OBV/MF indicator is go, then I use the 3/7/10 EMA to find an entry point. Without a buy from the EMA, I don't take a position. I just watch. If you will set a weight to each Canslim requirement [and Tom could help here] and then arbitrarily set a cumulative base number, say, to 85, or whatever number you chose, you will avoid missing some of the early rise in the stock price. The larger the number, the later your entry. In some instances, you might have a base number high enough such that one of the Canslim requirements might be ignored. If you're uneasy about a stock that sits on your base number or nearby, follow this sequence: [1] choose a 3-number EMA to determine an entry point; and you can use the EMA for exit also; [2] look at both the SlowStochastic and FastStochastic [recall that when you call up the SlowStochastic there is within that indicator two lines, one fast and one slow; same is true of the FastStochastic]; [3] check the MACD; this can give give a buy or sell signal, but I use it only for a general confirmation; this is a lagging indicator. These are my arbitrary choices; if you've others, look at them. But don't let the addition of further indicators again make you non-plussed. Always remember not to get too cute with indicators. Some software I've had offered over 50. I look at six or seven at most, but I never lose sight of the weight I put in my OBV/MF and 3/7/10. I buy all the groceries and pay the rent with just these few. I see some of you attend to the standard moving averages. A 10 EMA is really jerky. The 40 and 50 EMAs are smoother and are used by everyone. Then come the conservative 100 and 200. But if you let these carry weight, you have further complicated the significance of your weighted Canslim base number. I have a friend who makes spending money by trading long and short off the 20 EMA. Whatever works for you is what you must learn to give weight to. Vary from that strategy and you are inviting problems. You can believe with 100 percent assurance that O'Neill does not follow his principles without fail. Surely no one is naive enough to believe that the information he gives to institutions and wealthy individuals comes from his books and writings. And to believe that this information would be what you and I would receive is to play at ducks and geese. You ought to look at all paid-for market information as a punitive expedition against naive and amateur market players. To believe otherwise is to believe that prices ought to break out on all three sides of a triangle before you take a position. It's better to be punished for original sin than not to have your indicators weighted and orderly--and not to believe in yourself. Connie Mack - - ------------------------------ Date: Wed, 15 Apr 1998 15:36:03 -0500 From: "Joe Scott" Subject: [CANSLIM] MDLK This is a multi-part message in MIME format. - ------=_NextPart_000_001A_01BD6884.332868E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Wow,, 31% in two days with MDLK, =20 I sold today, put in a sell limit at 27 3/4=20 and it sold three minutes before the close. =20 Enough bragging, (although I love to) but what a day . TLC, LGTO, FDS, HDWY, NVR all up,=20 INFM has been quiet lately, earnings due on the 20th, wondering what's = in store,=20 its been up and down since I bot on 3-17.=20 Time will tell. don't know a thing joe http://www.2fords.net/joe/ - ------=_NextPart_000_001A_01BD6884.332868E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Wow,, 31% in two days with MDLK,  =
I sold today, put in a sell limit at 27 3/4=20
and it sold three minutes before the = close. =20
Enough bragging, (although I love to) but = what a day=20 .
 
TLC, LGTO, FDS, HDWY, NVR all up,
INFM has been quiet lately, earnings due on the 20th, wondering = what's in=20 store,
its been up and down since I bot on 3-17.
Time will tell.
 
don't know a thing
joe
 
http://www.2fords.net/joe/<= /DIV> - ------=_NextPart_000_001A_01BD6884.332868E0-- - - ------------------------------ Date: Wed, 15 Apr 1998 13:43:03 -0800 From: "Patrick Wahl" Subject: [CANSLIM] tech stocks A lot of yapping about tech stocks on CNBC today and how strong everything was, and then after the close today Apple released earnings that really blew away the earnings estimates, so maybe that will give everything a boost tomorrow, not to mention Apple stock itself. - - ------------------------------ Date: Wed, 15 Apr 1998 15:54:27 -0500 From: "Joe Scott" Subject: Re: [CANSLIM] Entry & Exix Points This is a multi-part message in MIME format. - ------=_NextPart_000_0024_01BD6886.C529CFC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable This is one of those posts that goes on my desktop, to be read over and = over until I can understand and digest the information it contains, then = I throw out what doesn't fit, put on what does fit, and I'm sure I'll = come out the other side a better trader for it.=20 From all the newbies, myself included, Thanks to you Connie and the = others who continue to try to help and educate us. don't know a thing joe http://www.2fords.net/joe/ - ------=_NextPart_000_0024_01BD6886.C529CFC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
This is one of those posts that goes on my = desktop, to=20 be read over and over until I can understand and digest the information = it=20 contains, then I throw out what doesn't fit, put on what does fit,  = and I'm=20 sure I'll come out the other side  a better trader for it. =
From all the newbies, myself included, Thanks = to you=20 Connie and the others who continue to try to help and educate = us.
 
don't know a thing
joe
 
http://www.2fords.net/joe/<= /DIV>
 
 
- ------=_NextPart_000_0024_01BD6886.C529CFC0-- - - ------------------------------ Date: Wed, 15 Apr 1998 17:26:04 -0700 From: Subject: [CANSLIM] AACE and MINI AACE was up 1 3/16 with above average trading 16 13/16 MINI was up another 1/2 and heading further into no mans land at 12 both or these are canslim picks. BUNZ is still licking its wounds, but I did go by my local Schlotskys today and it was packed as usual - - David the rookie - - ------------------------------ Date: Wed, 15 Apr 1998 19:13:01 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Entry & Exix Points Good commentary, Connie. I'll add my two cents worth to it. I have started using the 3/7/10 SMA (maybe I should start trying the EMA) on a five day, hourly chart looking at both OBV and MF to aid in my selling decisions, and to a lesser degree my entry points. My first "screen" remains new highs and stocks beating earnings estimates. If I like the CS elements and chart formation I see on these at DG Online, and they're within my budget (under $20), then I start trying to pick them apart at BC. On my "winners", I use the above criteria at BC to aid me once I start feeling like the stock is getting too extended or too far away from rational support. Would disagree that CANSLIM rules are "arbitrarily" conservative, rather they are the culmination of WON's experimentation and learning over 30 years. For example, when he first started trying to apply his new rules several decades ago, he was using a stop of 10%. He gradually tightened this as he had several big losses this way, and discovered that too tight a stop can cause you to stop out of a big winner, thus gradually hitting on 7-8% as the "Goldilocks" nr. Don't know about Tom knowing so much about CANSLIM, I am more likely a good example of an old fart who thinks he knows, but discovers he is learning every day when some rookie reminds him of what the rulebook REALLY says. I have said all along that CANSLIM is far more a philosophy than a science. Each investor has to take what fits, what is comfortable, what works for you, and apply it individually. I go by experience far more than a "body of rules", using what life in the trenches, training by WON staffers, tens of thousands of charts examined, gut instinct, and 40 years in the mkt has hopefully taught me. One advantage of your ability to tailor CANSLIM is that you can make it fit your own investment and personality style. If you are more of a risk taker, you may not want to wait for the handle of a c&h to form, heck, you may even want to start a position as it rises on the right side of a cup. If you are conservative, you may not only want to wait on the handle, you may want one or more days of breakout volume. I agree with Connie on setting aside some rules, on the condition that you are confident and comfortable with both knowing the rules and understanding why they exist, and then make a conscious decision, that you can justify to yourself both then and later, to ignore a rule. And, Connie, BTW the destroyer captain would have blown up his ship, not his boat. Let's get the nautical terminology correct here. I haven't gotten so scientific that I give weight consciously to either CS elements or to short term technical indicators. Give me a break, I'm unemployed and already spending 8-9 hours on the internet looking at stocks, starting about 3 in the morning!! FWIW, when I look at a DGO chart, it must usually (operative word here is usually, not always) meet certain criteria, or I move on. This is, more or less in order of what I look at, RS over 90, EPS over 75, chart formation, u/d ratio over 1.0 (preferably much higher), A/D of A/B, industry group (my personal biases), consistency of both earnings and revenues and with each other, funds holding, recent volume, management holding, "I", "M", price, earnings forecast and likelihood of achievement based on recent qtrs. If I like most or all of these, I move on to BC to examine some of the short term tech indicators, as well as considering other CS elements. When it comes down to weighing one potential buy against another, frankly it often depends on how each are trading that day. I haven't developed a numerical system yet, but if I do I will patent it before telling you guys about it! Tom W - -----Original Message----- From: Connie Mack Rea To: canslim Date: Wednesday, April 15, 1998 4:15 PM Subject: [CANSLIM] Entry & Exix Points >Members-- > >Because Canslim rules are arbitrarily conservative, you must expect to >miss initial moves. E.g., the cup and handle configuration is powerful; >and it is conservative. Its very shape absolutely requires that a stock >passes from some arbitrary level, to a lower lever, and back to the >original level. Beyond that, the figure requires a sifting out period >[the handle]. > >>From just a casual look at several Canslim choices, I see that a stock >with Canslim prospects could be bought earlier. E.g., once you find a >good prospect, consider making an entry [1] before the cup is completed >or, if not then, [2] before the handle completes. > >You could let the chart pattern dictate your entry point. You could One member asked >recently if anyone had ever seen a pure Canslim stock; he thought he had >not. To me, this suggests that either there are too many requirements >or that there should be permitted qualifying amendments. Other members >suggest that there is not sufficient clarity as to when each requirement >is met. > >Tom probably knows as much about Canslim as any member; yet he often >must offer up opinion rather than dictum about when rules are met. >Too, different sources may give different numbers. From my >conversations with Tom, I believe it is fair to say that he does not >unequivocally adhere to Canslim rules. I would not expect someone with >his experience to do otherwise. Tom has spoken to the group about is >own occasional day trading. > >Experienced traders and investors don't forsake all the rules, but >sometimes the rules are set aside. But neither gets careless--like the >destroyer captain who wrongly set his depth charges and blew up the >boat. > >One way to avoid getting non-plussed about meeting all the Canslim rules >is to set a weight to each principle such that they total, say, 100. >E.g., I heavily weight my OBV/MF indicator such that if both criterion >are not met, I don't buy [except when I take a flyer and fly by the seat >of my pants]. If the OBV/MF indicator is go, then I use the 3/7/10 EMA >to find an entry point. Without a buy from the EMA, I don't take a >position. I just watch. > >If you will set a weight to each Canslim requirement [and Tom could help >here] and then arbitrarily set a cumulative base number, say, to 85, or - - ------------------------------ Date: Wed, 15 Apr 1998 19:36:05 -0400 From: "Tom Worley" Subject: Fw: [CANSLIM] NYSE New Highs Sorry if the next two are dups, but don't show them as coming back this morning. Tom W - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Wednesday, April 15, 1998 5:17 AM Subject: Re: [CANSLIM] NYSE New Highs >Another example of why the Dow 30 shouldn't be used for issues that >matter, like circuit breakers (but then they are now designed as of >today to be unlikely to ever again be tripped, so guess it doesn't >matter after all). > >I prefer to use the Investors Daily 6000, S&P500 and NASDAQ Composite >for a good overall view of the market action. These three all show the >mkts consolidating for the past week, despite what the Dow 30 shows. >Worth noting that the RS line on NASDAQ has been flat compared to the >S&P500 since mid-Nov, and slightly below where it was prior to that. > >NYSE "new highs" doesn't need to hit a new record, in fact it's well >away from that, but it does appear to have begun to increase again. > >Tom W > >-----Original Message----- >From: Mike Lucero >To: 'canslim@lists.xmission.com' >Date: Wednesday, April 15, 1998 4:49 AM >Subject: [CANSLIM] NYSE New Highs > > >>Although the DOW hit a new high today, the NYSE composite didn't, and >the >>NYSE New Highs indicator didn't either, it's trend still seems down. >> >>Mike >> >>- >> > - - ------------------------------ Date: Wed, 15 Apr 1998 19:37:33 -0400 From: "Tom Worley" Subject: Fw: [CANSLIM] BNYN, QMRK ..... Another possible dup. Tom W - -----Original Message----- From: Tom Worley To: Oli Josefsson Date: Wednesday, April 15, 1998 9:49 AM Subject: Re: [CANSLIM] BNYN, QMRK ..... >Oli, > >QMRK - EPS 75, earned 20 cents for 1997, forecast for 32 cents 1998, >last four qtrs earned 4, 3, 3, and 10 cents respectively. Trailing PE >39. > >BNYN - EPS 75, lost 50 cents for 1997, forecast for plus 13 cents for >1998, last four qtrs lost 50 cents, lost 37 cents, earned 4 cents, >earned 10 cents - no trailing PE due net loss. > >My data comes from DG Online which I have repeatedly cited as my >source, it is my primary charting site. If you are using other data >sites, the data may differ as WON excludes any non-recurring gains or >losses, thus giving a better picture, IMHO, of what to expect in the >future. > >Tom W > >-----Original Message----- >From: Oli Josefsson >To: canslim@lists.xmission.com >Date: Wednesday, April 15, 1998 9:22 AM >Subject: [CANSLIM] BNYN, QMRK ..... > > >>Content-Md5: 8AE+ZCFE/E63MS5LoPohDA== >>Sender: owner-canslim@lists.xmission.com >>Precedence: bulk >>Reply-To: canslim@lists.xmission.com >>X-No-Archive: yes >> >> >>Greetings. >>Tom listed yesterday a few stocks he was adding to his watchlist, >>including BNYN and QMRK. >>According to YAHOO both BNYN and QMRK seem to be loosing money >>hand over fist at this point (negative profit margin and >>negative earnings, nonexisting P/E ratio (since earnings are >>less than 0). >>I have seen other members bring up such stocks also. >>Educate me here, but does not A and C in CANSLIM stand >>for Annual and Current earnings and these are supposed >>to be strong (certainly above 0, right). >>It surely may be worth while investing >>in such companies but how can they be considered CANSLIM >>candidates? I have not looked at the EPS rating of >>BNYN or QMRK but how can they be above 70-80 with negative >>earnings ? >> > > - - ------------------------------ Date: Wed, 15 Apr 1998 19:37:44 -0700 From: Subject: Re: [CANSLIM] Entry & Exix Points This was a great post thank you very much Connie. Just one thing for us rookies. Please, if you dont mind, explain "OBV and MF" Also the three number EMA. This part went right over my head . thanks David - -----Original Message----- From: Connie Mack Rea To: canslim Date: Wednesday, April 15, 1998 1:19 PM Subject: [CANSLIM] Entry & Exix Points >Members-- > >Several members have said privately what I see mentioned to the entire >group: I am late getting in and slow getting out. > >May I suggest what I have said privately. As most of you know, I am not >a follower of Canslim but rather a day/swing trader who has been made >welcome--despite his failure to have seen the Canslim light. > >My criteria for buying are probably more restrictive than most traders; >too, they are different in that my initial screening is based on my >reading of OBV and MF. Though I have separate software for these >readings, I have found that readings from BigCharts are so little >different that you will not err if you use only BC. > >Because Canslim rules are arbitrarily conservative, you must expect to >miss initial moves. E.g., the cup and handle configuration is powerful; >and it is conservative. Its very shape absolutely requires that a stock >passes from some arbitrary level, to a lower lever, and back to the >original level. Beyond that, the figure requires a sifting out period >[the handle]. > >When the stock breaks out from the handle [or any flat period], you must >be prepared for a return to the break out point--irrespective of >volume. I have noticed comments about a breakout [and frequently false >breaks] giving a nice gain that was lost when the stock fell back, often >to a place below the handle. Not only was the gain erased, but a loss >resulted. > >From just a casual look at several Canslim choices, I see that a stock >with Canslim prospects could be bought earlier. E.g., once you find a >good prospect, consider making an entry [1] before the cup is completed >or, if not then, [2] before the handle completes. > >You could let the chart pattern dictate your entry point. You could >elect to use an EMA indicator as your guide. BigCharts lets you set >your three number EMA. I use a 3/7/10, which is pretty quick, perhaps >too quick for most. I have suggested a 5/10/15 as an EMA more >conservative; however, there is not much different between the two. A >10/15/20 EMA would be quite safe in most instances, especially if you >wait until the 15 lines passes through the 20. The larger the EMA, the >later your entry. It is best to back test each of these. > >The more Canslim requirements, the later your entry. One member asked >recently if anyone had ever seen a pure Canslim stock; he thought he had >not. To me, this suggests that either there are too many requirements >or that there should be permitted qualifying amendments. Other members >suggest that there is not sufficient clarity as to when each requirement >is met. > >Tom probably knows as much about Canslim as any member; yet he often >must offer up opinion rather than dictum about when rules are met. >Too, different sources may give different numbers. From my >conversations with Tom, I believe it is fair to say that he does not >unequivocally adhere to Canslim rules. I would not expect someone with >his experience to do otherwise. Tom has spoken to the group about is >own occasional day trading. > >Experienced traders and investors are like pilots who on a good VFR day >just fly by the seat of their pants when they know the territory. I >have good radios and VFR/IFR maps, but some days I just like to fly. > >Experienced traders and investors don't forsake all the rules, but >sometimes the rules are set aside. But neither gets careless--like the >destroyer captain who wrongly set his depth charges and blew up the >boat. > >One way to avoid getting non-plussed about meeting all the Canslim rules >is to set a weight to each principle such that they total, say, 100. >E.g., I heavily weight my OBV/MF indicator such that if both criterion >are not met, I don't buy [except when I take a flyer and fly by the seat >of my pants]. If the OBV/MF indicator is go, then I use the 3/7/10 EMA >to find an entry point. Without a buy from the EMA, I don't take a >position. I just watch. > >If you will set a weight to each Canslim requirement [and Tom could help >here] and then arbitrarily set a cumulative base number, say, to 85, or >whatever number you chose, you will avoid missing some of the early rise >in the stock price. The larger the number, the later your entry. In >some instances, you might have a base number high enough such that one >of the Canslim requirements might be ignored. > >If you're uneasy about a stock that sits on your base number or nearby, >follow this sequence: [1] choose a 3-number EMA to determine an entry >point; and you can use the EMA for exit also; [2] look at both the >SlowStochastic and FastStochastic [recall that when you call up the >SlowStochastic there is within that indicator two lines, one fast and >one slow; same is true of the FastStochastic]; [3] check the MACD; this >can give give a buy or sell signal, but I use it only for a general >confirmation; this is a lagging indicator. These are my arbitrary >choices; if you've others, look at them. But don't let the addition of >further indicators again make you non-plussed. > >Always remember not to get too cute with indicators. Some software I've >had offered over 50. I look at six or seven at most, but I never lose >sight of the weight I put in my OBV/MF and 3/7/10. I buy all the >groceries and pay the rent with just these few. > >I see some of you attend to the standard moving averages. A 10 EMA is >really jerky. The 40 and 50 EMAs are smoother and are used by >everyone. Then come the conservative 100 and 200. But if you let these >carry weight, you have further complicated the significance of your >weighted Canslim base number. I have a friend who makes spending money >by trading long and short off the 20 EMA. Whatever works for you is >what you must learn to give weight to. Vary from that strategy and you >are inviting problems. > >You can believe with 100 percent assurance that O'Neill does not follow >his principles without fail. Surely no one is naive enough to believe >that the information he gives to institutions and wealthy individuals >comes from his books and writings. And to believe that this information >would be what you and I would receive is to play at ducks and geese. > >You ought to look at all paid-for market information as a punitive >expedition against naive and amateur market players. To believe >otherwise is to believe that prices ought to break out on all three >sides of a triangle before you take a position. > >It's better to be punished for original sin than not to have your >indicators weighted and orderly--and not to believe in yourself. > >Connie Mack > > > >- > > - - ------------------------------ Date: Wed, 15 Apr 1998 20:20:20 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] Entry & Exix Points Joe-- Thanks for the comment. Connie Mack Joe Scott wrote: > This is one of those posts that goes on my desktop, to be read over > and over until I can understand and digest the information it > contains, then I throw out what doesn't fit, put on what does fit, > and I'm sure I'll come out the other side a better trader for it.From > all the newbies, myself included, Thanks to you Connie and the others > who continue to try to help and educate us. don't know a thing > joe http://www.2fords.net/joe/ - - ------------------------------ Date: Wed, 15 Apr 1998 20:34:13 -0400 From: "Tom Worley" Subject: [CANSLIM] HDWY For those holding Headway (HDWY), but without access to First Call news, this was released today by Legg Mason. EPS estimate for 1998 - $.36/share EPS estimate for 1999 - $.45 CEO recently returned from Asia. Sees significant opportunities. Close to finalizing two more acquisitions. Maintaining 1998 and 1999 EPS estimates. HDWY already has an Asian presence (Tokyo, Singapore, Hong Kong), sees opportunities in the current Asian economic crises for "permanent placement". Legg Mason thinks short term impacts (of this added business opportunity) will be muted. HDWY's management sees recent large mergers in the U. S. financial mkts as "neutral to positive"; based on announced mergers HDWY "should not lose any business from current clients"; "continued fluctuations in the financial services industry provide a significant opportunity for HDWY as the only employment services firm concentrating in financial services vertical markets". Per Legg Mason, the two new anticipated acquisitions are one in UK, focused on the financial svcs mkt, and one in the information tech field (location not specified). Legg Mason sets a downside estimate on HDWY at $5/share and a trading target of $11 to the upside, with an "excess return on capital valuation measures derive a range of $17-$19 depending on the leverage used by the company". Tom W - - ------------------------------ Date: Wed, 15 Apr 1998 19:37:07 -0500 From: "Joe Scott" Subject: [CANSLIM] Netscape? This is a multi-part message in MIME format. - ------=_NextPart_000_004A_01BD68A5.E06BDDE0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Going through some charts here tonight on DG, and am looking at a list = of internet stocks, some of them sure have popped in the past week or = two. I try not to post this kind of thing to this group because it has = nothing to do with CANSLIM, but I can't help but notice Netscape's chart = NSCP.=20 It popped 1.87 on 2x volume today off of what looks to be off a 4 year = low, RS 8 . Its hard for me to believe that Netscape which I believe is still the = no.1 browser is at a 4 year low, even with earnings, and sales slipping = seems it would worth more than its selling for. don't know a thing joe http://www.2fords.net/joe/ - ------=_NextPart_000_004A_01BD68A5.E06BDDE0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Going through some charts here tonight on DG, = and am=20 looking at a list of internet stocks, some of them sure have popped in = the past=20 week or two. I try not to post this kind of thing to this group because = it has=20 nothing to do with CANSLIM, but I can't help but notice Netscape's chart = NSCP.=20
It popped 1.87 on 2x volume today off of what = looks to=20 be off a  4 year low, RS 8 = .
Its hard for me to believe that Netscape = which I=20 believe is still the no.1 browser is at a 4 year low, even with = earnings, and=20 sales slipping seems it would worth more than its selling = for.
 
don't know a thing
joe
 
http://www.2fords.net/joe/<= /DIV> - ------=_NextPart_000_004A_01BD68A5.E06BDDE0-- - - ------------------------------ Date: Wed, 15 Apr 1998 17:47:01 PDT From: "Charles Morgan" Subject: [CANSLIM] NAACO INDUSTRIES Here is a stock to look into for tomorrow. Symbol: NC Price: 133.31 52 week high: 137.81 RS: 94 EPS: 96 DIS: B Sponser: B The float is around 5 mil. The stock was up about 1 today and they released earnings at the close of the market. I am still checking into the numbers (ie there is a plant down from where I work), because the press release is stating $2.95 first quarter versus $0.35 same period a year ago. That is a big jump! It may make a move to break on up. It looks like it was trying to base after breaking out of the double bottom. Any comments or opinions? I would like to know if I am out in left field without a clue on this one :) Chuck ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com - - ------------------------------ Date: Wed, 15 Apr 1998 21:12:00 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] Entry & Exix Points David-- Glad to help. Go to this address: http://bigcharts.com BigCharts has two main screens. One brings up the charts. The other has numerical data on stocks. Click in the upper left corner on BigCharts to change screens. In the left frame, under the "Draw Chart" button, click "Indicators." Under "Moving Averages," there are SMA [simple moving average] and EMA [exponential moving average]. Click the EMA [3-line]. At the top of the chart you will see EMA 5, EMA 10, and EMA 15. These are BC's default numbers. On the stock price will be three colored lines representing the the EMAs. To alter the default settings, deselect the 5, which is visible, by clicking on it, as if you were selecting it. If the 5 turns blue, you have deselected it. Enter this sequence minus the brackets: [3,7,10]. Now you have the new 3-number EMA. To see a comment on any indicator, click on the text above any window. E.g., clicking on "Moving Averages" will bring up a screen from which you can read a comment. In the window below "Lower Indicators," click on the arrow. You may have to move the arrow pointing to the right to see the other arrow. Clicking on the arrow brings up a series of indicators and other information. Click on MoneyFlow and then on "Draw Chart" to see a MF chart at the bottom of the screen under the price chart. The OBV [On Balance Volume] is on the same list as MF. Click OBV, and you're in business. Thanks for the mail, David. Connie Mack hoseco7@concentric.net wrote: > This was a great post thank you very much Connie. > Just one thing for us rookies. > Please, if you dont mind, explain "OBV and MF" > Also the three number EMA. > This part went right over my head . > > thanks David > -----Original Message----- > From: Connie Mack Rea > To: canslim > Date: Wednesday, April 15, 1998 1:19 PM > Subject: [CANSLIM] Entry & Exix Points > > >Members-- > > > >Several members have said privately what I see mentioned to the > entire > >group: I am late getting in and slow getting out. > > > >May I suggest what I have said privately. As most of you know, I am > not > >a follower of Canslim but rather a day/swing trader who has been made > > >welcome--despite his failure to have seen the Canslim light. > > > >My criteria for buying are probably more restrictive than most > traders; > >too, they are different in that my initial screening is based on my > >reading of OBV and MF. Though I have separate software for these > >readings, I have found that readings from BigCharts are so little > >different that you will not err if you use only BC. > > > >Because Canslim rules are arbitrarily conservative, you must expect > to > >miss initial moves. E.g., the cup and handle configuration is > powerful; > >and it is conservative. Its very shape absolutely requires that a > stock > >passes from some arbitrary level, to a lower lever, and back to the > >original level. Beyond that, the figure requires a sifting out > period > >[the handle]. > > > >When the stock breaks out from the handle [or any flat period], you > must > >be prepared for a return to the break out point--irrespective of > >volume. I have noticed comments about a breakout [and frequently > false > >breaks] giving a nice gain that was lost when the stock fell back, > often > >to a place below the handle. Not only was the gain erased, but a > loss > >resulted. > > > >From just a casual look at several Canslim choices, I see that a > stock > >with Canslim prospects could be bought earlier. E.g., once you find > a > >good prospect, consider making an entry [1] before the cup is > completed > >or, if not then, [2] before the handle completes. > > > >You could let the chart pattern dictate your entry point. You could > >elect to use an EMA indicator as your guide. BigCharts lets you set > >your three number EMA. I use a 3/7/10, which is pretty quick, > perhaps > >too quick for most. I have suggested a 5/10/15 as an EMA more > >conservative; however, there is not much different between the two. > A > >10/15/20 EMA would be quite safe in most instances, especially if > you > >wait until the 15 lines passes through the 20. The larger the EMA, > the > >later your entry. It is best to back test each of these. > > > >The more Canslim requirements, the later your entry. One member > asked > >recently if anyone had ever seen a pure Canslim stock; he thought he > had > >not. To me, this suggests that either there are too many > requirements > >or that there should be permitted qualifying amendments. Other > members > >suggest that there is not sufficient clarity as to when each > requirement > >is met. > > > >Tom probably knows as much about Canslim as any member; yet he often > >must offer up opinion rather than dictum about when rules are met. > >Too, different sources may give different numbers. From my > >conversations with Tom, I believe it is fair to say that he does not > >unequivocally adhere to Canslim rules. I would not expect someone > with > >his experience to do otherwise. Tom has spoken to the group about is > > >own occasional day trading. > > > >Experienced traders and investors are like pilots who on a good VFR > day > >just fly by the seat of their pants when they know the territory. I > >have good radios and VFR/IFR maps, but some days I just like to fly. > > > >Experienced traders and investors don't forsake all the rules, but > >sometimes the rules are set aside. But neither gets careless--like > the > >destroyer captain who wrongly set his depth charges and blew up the > >boat. > > > >One way to avoid getting non-plussed about meeting all the Canslim > rules > >is to set a weight to each principle such that they total, say, 100. > >E.g., I heavily weight my OBV/MF indicator such that if both > criterion > >are not met, I don't buy [except when I take a flyer and fly by the > seat > >of my pants]. If the OBV/MF indicator is go, then I use the 3/7/10 > EMA > >to find an entry point. Without a buy from the EMA, I don't take a > >position. I just watch. > > > >If you will set a weight to each Canslim requirement [and Tom could > help > >here] and then arbitrarily set a cumulative base number, say, to 85, > or > >whatever number you chose, you will avoid missing some of the early > rise > >in the stock price. The larger the number, the later your entry. In > > >some instances, you might have a base number high enough such that > one > >of the Canslim requirements might be ignored. > > > >If you're uneasy about a stock that sits on your base number or > nearby, > >follow this sequence: [1] choose a 3-number EMA to determine an entry > > >point; and you can use the EMA for exit also; [2] look at both the > >SlowStochastic and FastStochastic [recall that when you call up the > >SlowStochastic there is within that indicator two lines, one fast and > > >one slow; same is true of the FastStochastic]; [3] check the MACD; > this > >can give give a buy or sell signal, but I use it only for a general > >confirmation; this is a lagging indicator. These are my arbitrary > >choices; if you've others, look at them. But don't let the addition > of > >further indicators again make you non-plussed. > > > >Always remember not to get too cute with indicators. Some software > I've > >had offered over 50. I look at six or seven at most, but I never > lose > >sight of the weight I put in my OBV/MF and 3/7/10. I buy all the > >groceries and pay the rent with just these few. > > > >I see some of you attend to the standard moving averages. A 10 EMA > is > >really jerky. The 40 and 50 EMAs are smoother and are used by > >everyone. Then come the conservative 100 and 200. But if you let > these > >carry weight, you have further complicated the significance of your > >weighted Canslim base number. I have a friend who makes spending > money > >by trading long and short off the 20 EMA. Whatever works for you is > >what you must learn to give weight to. Vary from that strategy and > you > >are inviting problems. > > > >You can believe with 100 percent assurance that O'Neill does not > follow > >his principles without fail. Surely no one is naive enough to > believe > >that the information he gives to institutions and wealthy individuals > > >comes from his books and writings. And to believe that this > information > >would be what you and I would receive is to play at ducks and geese. > > > >You ought to look at all paid-for market information as a punitive > >expedition against naive and amateur market players. To believe > >otherwise is to believe that prices ought to break out on all three > >sides of a triangle before you take a position. > > > >It's better to be punished for original sin than not to have your > >indicators weighted and orderly--and not to believe in yourself. > > > >Connie Mack > > > > > > > >- > > > > > > - - - ------------------------------ End of canslim-digest V2 #189 ***************************** 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.