From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1934 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Tuesday, December 11 2001 Volume 02 : Number 1934 In this issue: Re: [CANSLIM] clarification Re: [CANSLIM] clarification Re: [CANSLIM]"Rubberband Sell Rule" Re: [CANSLIM] breakouts - return to base Re: [CANSLIM] breakouts - return to base ---------------------------------------------------------------------- Date: Wed, 12 Dec 2001 00:38:57 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] clarification This is a multi-part message in MIME format. - ------=_NextPart_000_0028_01C182A5.62C9EDA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Larry, Welcome to the group, and sorry for overwhelming you initially with all = the shorthand and acronyms. I'll try to clarify for you and others. DGO - Daily Graphs Online, a WON (William O'Neil, our mentor and creator = of CANSLIM) product, the online version of the DG books published = weekly. It is an expensive charting service, but the costs can be = reduced by subscribing to a single monthly DG book and getting the = discount, cost net about $535 / year instead of $730. HGH - don't recognize this one right off, maybe HGS, for High Growth = Stocks, a CANSLIMish subscription service HTMMS - I think you mean HTMMIS, for "How To Make Money In Stocks", = written by Wm O'Neil. Third edition was supposed to be released by now, = but I hear it won't be available at book stores and Amazon until January = 2002 BO - usually refers to "break out", at least in this forum, a particular = chart pattern where both price and volume take a stock out of a basing = pattern, you will find a lot about this in HTMMIS, which is strongly = recommended reading. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: larry l worden=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, December 12, 2001 12:27 AM Subject: [CANSLIM] clarification I have been reading the posts for a week, and I can not figure out the abbreviations. Can anyone help. DGO HGH HTMMS BO and who is WON ,where can I get his book. I enjoy the posts and like the positive = atmosphere. My stocks at present are CACI DFXI AHMH (plan to sell in a few days) = and TKF thanks - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0028_01C182A5.62C9EDA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Larry,
 
Welcome to the group, and sorry for overwhelming you = initially=20 with all the shorthand and acronyms. I'll try to clarify for you and=20 others.
 
DGO - Daily Graphs Online, a WON (William O'Neil, = our mentor=20 and creator of CANSLIM) product, the online version of the DG books = published=20 weekly. It is an expensive charting service, but the costs can be = reduced by=20 subscribing to a single monthly DG book and getting the discount, cost = net about=20 $535 / year instead of $730.
 
HGH - don't recognize this one right off, maybe HGS, = for High=20 Growth Stocks, a CANSLIMish subscription service
 
HTMMS - I think you mean HTMMIS, for "How To Make = Money In=20 Stocks", written by Wm O'Neil. Third edition was supposed to be released = by now,=20 but I hear it won't be available at book stores and Amazon until January = 2002
 
BO - usually refers to "break out", at least in this = forum, a=20 particular chart pattern where both price and volume take a stock out of = a=20 basing pattern, you will find a lot about this in HTMMIS, which is = strongly=20 recommended reading.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 larry l = worden=20
To: canslim@lists.xmission.com =
Sent: Wednesday, December 12, = 2001 12:27=20 AM
Subject: [CANSLIM] = clarification

I have been reading the posts for a week, and I can not = figure=20 out the
abbreviations. Can anyone help. DGO HGH HTMMS BO and who is = WON=20 ,where
can I get his book. I enjoy the posts and like the positive=20 atmosphere.
My stocks at present are CACI DFXI AHMH (plan to sell = in a few=20 days) and
TKF  thanks

-
-To subscribe/unsubscribe, = email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your email.
- ------=_NextPart_000_0028_01C182A5.62C9EDA0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Tue, 11 Dec 2001 22:17:37 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] clarification Hi Larry, I'll take this one, as I asked the same questions only recently. Welcome to the club, so to speak! DGO = charting software DailyGraphs Online www.dailygraphs.com HGS (think that's what you meant) = software called High Growth Stock www.highgrowthstock.com HTMMIS = "How to Make Money in Stocks" by Wm. O'Neil http://www.amazon.com/exec/obidos/ASIN/0070480176/qid=1008135533/sr=1-1/ref= sr_1_79_1/104-6796348-6536711 WON = William O'Neil www.investors.com B/O = breakout BO = bad odor (just kidding!) Katherine - ----- Original Message ----- From: "larry l worden" To: Sent: Tuesday, December 11, 2001 11:27 PM Subject: [CANSLIM] clarification > I have been reading the posts for a week, and I can not figure out the > abbreviations. Can anyone help. DGO HGH HTMMS BO and who is WON ,where > can I get his book. I enjoy the posts and like the positive atmosphere. > My stocks at present are CACI DFXI AHMH (plan to sell in a few days) and > TKF thanks > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 00:41:58 -0500 From: "Tom Worley" Subject: Re: [CANSLIM]"Rubberband Sell Rule" This is a multi-part message in MIME format. - ------=_NextPart_000_0032_01C182A5.CECADAA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ahhh, the light bulb just clicked on in the old gray matter. I didn't = look back far enough to see the c&h (cup and handle) base formation, and = use that for the base low price. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, December 11, 2001 11:11 PM Subject: Re: [CANSLIM]"Rubberband Sell Rule" Tom, =20 I always use a valid base to do the measure. The only recent valid = base is a cup from $20.05 on 8/30 to a low of $8.49 9/21 to a B/O on = 11/6 at 2x ADV. =20 That means at today's close price of $27.50, we have =20 224% above BL $8.49 and 32% above 50dMA $20.88 and 77% above 200dMA $15.58 =20 Possible sell triggered. =20 Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, December 11, 2001 11:13 PM Subject: Re: [CANSLIM]"Rubberband Sell Rule" Bill and Katherine, Where do you peg the "recent base low"?? If you use the short base = just under 20, then it's up about 140% depending on the exact price you = use. On the other hand, if you use the more recent and longer = consolidation it did around / over $25 (now in its 5th week), then this = criteria is not satisfied, and the test fails on this count. P.S. Shhsssshhh, if IBD thinks we have too much knowledge here, then = they're liable to give out the address, and we will be swamped with = newbies. Another form of the IBD curse!! Not that I don't welcome = newcomers here, in fact they typically bring in fresh perspective, = ideas, and challenges to the stodgy thinking of members like me (once we = get them over their shyness about posting). Just gotta take them in = moderation, not volume. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Bill Triffet=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, December 12, 2001 12:01 AM Subject: Re: [CANSLIM]"Rubberband Sell Rule" Katherine, Really enjoy your posts. You and Tom ought to write a book = together! : ) I'm amazed at the wealth of information I've seen here in the past few = weeks. Really great stuff. Looks like ALLY has just made the "rubber band" criteria. Will be = a good eductional study to follow its actions. -Bill Triffet ----- Original Message ----- From: "Katherine Malm" To: Sent: Tuesday, December 11, 2001 6:50 PM Subject: Re: [CANSLIM]"Rubberband Sell Rule" Hi John, The original discussion of this came up on the AZO thread, then = again on "PECS & the Rubberband sell rule" if you want to get more of the = discussion. But the criteria for the rule is: If all three of these criteria are met, be prepared to sell, as = the price can fall 15-25%: (1) >125% above the recent base low AND (2) >70% above the 200 day MA AND (3) >25% above the 50 day MA. This is an enhancement to WON's "may want to sell if the stock is = 70%+ above the 200 day MA." It's really just about quantifying the degree of = extension from its base and moving averages and the likelihood that short = term players will be taking profits. Hope that helps! Katherine - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0032_01C182A5.CECADAA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ahhh, the light bulb just clicked on in the old gray = matter. I=20 didn't look back far enough to see the c&h (cup and handle) base = formation,=20 and use that for the base low price.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com =
Sent: Tuesday, December 11, = 2001 11:11=20 PM
Subject: Re: = [CANSLIM]"Rubberband Sell=20 Rule"

Tom,
 
I always use a valid base to do the = measure. The=20 only recent valid base is a cup from $20.05 on 8/30 to a low of $8.49 = 9/21 to=20 a B/O on 11/6 at 2x ADV.
 
That means at today's close price of = $27.50, we=20 have
 
224% above BL $8.49 and
32% above 50dMA $20.88 = and
77% above 200dMA $15.58
 
Possible sell triggered.
 
Katherine
----- Original Message -----
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com =
Sent: Tuesday, December 11, = 2001 11:13=20 PM
Subject: Re: = [CANSLIM]"Rubberband Sell=20 Rule"

Bill and Katherine,
 
Where do you peg the "recent base low"?? If you = use the=20 short base just under 20, then it's up about 140% depending on the = exact=20 price you use. On the other hand, if you use the more recent and = longer=20 consolidation it did around / over $25 (now in its 5th week), then = this=20 criteria is not satisfied, and the test fails on this = count.
 
P.S. Shhsssshhh, if IBD thinks we have too much = knowledge=20 here, then they're liable to give out the address, and we will be = swamped=20 with newbies. Another form of the IBD curse!!  Not that I don't = welcome=20 newcomers here, in fact they typically bring in fresh perspective, = ideas,=20 and challenges to the stodgy thinking of members like me (once we = get them=20 over their shyness about posting). Just gotta take them in = moderation, not=20 volume.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 Bill=20 Triffet
To: canslim@lists.xmission.com =
Sent: Wednesday, December = 12, 2001=20 12:01 AM
Subject: Re: = [CANSLIM]"Rubberband=20 Sell Rule"

Katherine,

Really enjoy your posts. You and = Tom=20 ought to write a book together! : ) I'm
amazed at the wealth of = information I've seen here in the past few weeks.
Really great=20 stuff.

Looks like ALLY has just made the "rubber band" = criteria.=20 Will be a good
eductional study to follow its = actions.

-Bill=20 Triffet

----- Original Message -----
From: "Katherine = Malm"=20 <kmalm@earthlink.net>
To:=20 <canslim@lists.xmission.com= >
Sent:=20 Tuesday, December 11, 2001 6:50 PM
Subject: Re: = [CANSLIM]"Rubberband=20 Sell Rule"


Hi John,

The original discussion of = this came=20 up on the AZO thread, then again on
"PECS & the Rubberband = sell=20 rule" if you want to get more of the discussion.

But the = criteria=20 for the rule is:

If all three of these criteria are met, be = prepared to sell, as the price
can fall 15-25%:
(1) >125% = above=20 the recent base low AND
(2) >70% above the 200 day MA = AND
(3)=20 >25% above the 50 day MA.

This is an enhancement to = WON's "may=20 want to sell if the stock is 70%+ above
the 200 day MA." It's = really=20 just about quantifying the degree of extension
from its base = and moving=20 averages and the likelihood that short term players
will be = taking=20 profits.

Hope that=20 helps!

Katherine




-
-To = subscribe/unsubscribe,=20 email "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 email.
- ------=_NextPart_000_0032_01C182A5.CECADAA0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Tue, 11 Dec 2001 22:23:46 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] breakouts - return to base This is a multi-part message in MIME format. - ------=_NextPart_000_0355_01C18292.80154C00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Oh my, Tom. That was the best explanation of that guideline I've ever = heard. That bold print in HTMMIS never made a bit of sense. Why the heck = would I sell something at 20% just because it was up 20%? I've been = summarily ignoring it unless there were other signs of failure kicking = in. *Now* I get it! Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, December 11, 2001 11:29 PM Subject: Re: [CANSLIM] breakouts - return to base Hi Chris, In the article that I frustratingly still cannot find, but written = from an interview with Bill O'Neil around circa 1991 or 1992 for the = Registered Rep magazine (a trade journal for stock brokers), he = explained the 20% rule not as an absolute, but rather as a guideline for = newcomers to CANSLIM to teach them "how" to take profits (more than = "when" to take them). In the same article, he spoke of letting your = winners run once you had accumulated some profits, AND learned how to = take profits. Then you were starting to learn "when" to take profits OR = letting your strongest stocks continue to run, as well as hold through = corrections, in order to eventually still own the ones that moved up = several hundred percent. While times certainly have changed since then, and I am commenting = from 10 year old memory, this article and the training by his staff back = then taught me that a gain of 20% was reason to carefully examine a = chart, and be able to articulate why I WAS NOT selling it. In other = words, it was a reason to sell in the absence of more reasons to hold = it, much like Katherine's rubberband rule. It forced a conscious = examination of both the chart, the fundamentals and forecasts, and "M", = and then a conscious, pro-active decision making process (rather than = the complacency of "I am up 20% so I sell" or the "I am up 20% and this = stock will keep rising forever"). For me, that is one of the strengths of CANSLIM. By having some = "rules" and guidelines, it forces a discipline and conscious intelligent = process rather than just being a sheep following the herd, waiting for = the shearing, if not the slaughter. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Chris Dempsey=20 To: canslim@lists.xmission.com=20 Sent: Monday, December 10, 2001 1:22 PM Subject: RE: [CANSLIM] breakouts - return to base Katherine, David, and All others interested I remember reading that WON says 40% of breakouts return to the = base. I believe it is more than that. I'm not sure that it is 75%, but = it might be. For that reason WON states in his book you must take some = profits when they hit 20%. On one of the IBD tapes they state to profits = in 1/2 of positions reaching 25%. These are because of the high rate of = pull backs. If you don't do this then you are forced to use the rule, = don't let a winner turn into a loser.=20 SCUR appears to be an example of a stock returning/nearly returning = to the base. -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of = camelot.homes@charter.net Sent: Monday, December 10, 2001 9:49 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] low volume breakouts hi katherine , thank you so much for this very good information! = when bulkowski states that stocks retrace back to the b/o piont 75% of = the time is he talking about high or low volume breakouts? and where is = the best place to get a copy of his book? david ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Monday, December 10, 2001 5:10 AM Subject: Re: [CANSLIM] low volume breakouts Hi David, The question you ask is a good one. Demanding controlled study = proof of a guideline like this is important, as it makes an underlying = assumption about technical patterns which may or may not trigger a buy. = I pulled out my "Encyclopedia of Chart Patterns" by Thomas Bulkowski to = answer this question. In this book, the author does statistical studies = on chart formation and there is an entire chapter devoted to the C&H. = (pp.135-152). Before I state the author's conclusions, a general overview of = WON's theory as to why volume should be high on the breakout. That is, = you are looking for the point at which demand so outweighs supply that = the price moves up and onward. In my own personal experience, low volume = breakouts seem to fall back more often than not. But these are "odds" = not specifics. SONC is a good example from recent discussions on the = list. Take a look at the daily chart from 10/3 to now. You can see that = SONC tried very hard on several days to break out of its consolidation, = but fell back and eventually gapped down. The low volume B/O's don't = always mean the stock will fail, just that it's not yet ready to move = on. I like to have the odds in my favor, so I'm always willing to wait = until there's proof of the pudding. Back to Bulkowski. In the C&H formation, the failure rate is = 26%. If you wait for an upside breakout, the failure rate falls to 10%. = Stocks retrace back to the B/O point 75% of the time (average time 12 = days). Waiting for the throwback increases the success rate another 1%. = Typical B/O volume is 180% above the prior day and stays high for the = following week. Interestingly, he says removing the high volume B/O = criteria does hurt performance, but only minimally. This is an excellent = chapter on C&H and, based on the statistical evidence, the author makes = other conclusions that lead to particular trading tactics. There are = several additional criteria that WON would require of a stock forming a = C&H and then breaking out, such as rising RS, high group RS, underlying = fundamental characteristics, etc. that are not included in the author's = study. My own conclusions, anecdotally, are that if these other criteria = are met AND you get a high volume B/O, the odds are in your favor. (No = statistical studies to back that up, however!) Katherine ----- Original Message -----=20 From: camelot.homes@charter.net=20 To: canslim@xmission.com=20 Sent: Sunday, December 09, 2001 5:44 PM Subject: [CANSLIM] low volume breakouts how often does a low volume breakout succeed past the pivot = point versus a high volume breakout past the pivot point? david - ------=_NextPart_000_0355_01C18292.80154C00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Oh my, Tom. That was the best = explanation of that=20 guideline I've ever heard. That bold print in HTMMIS never made a bit of = sense.=20 Why the heck would I sell something at 20% just because it was up 20%? = I've been=20 summarily ignoring it unless there were other signs of failure kicking = in. *Now*=20 I get it!
 
Katherine
----- Original Message -----
From:=20 Tom = Worley=20
Sent: Tuesday, December 11, = 2001 11:29=20 PM
Subject: Re: [CANSLIM] = breakouts - return=20 to base

Hi Chris,
 
In the article that I frustratingly still cannot = find, but=20 written from an interview with Bill O'Neil around circa 1991 or 1992 = for the=20 Registered Rep magazine (a trade journal for stock brokers), he = explained the=20 20% rule not as an absolute, but rather as a guideline for newcomers = to=20 CANSLIM to teach them "how" to take profits (more than "when" to take = them).=20 In the same article, he spoke of letting your winners run once you had = accumulated some profits, AND learned how to take profits. Then = you were=20 starting to learn "when" to take profits OR letting your strongest = stocks=20 continue to run, as well as hold through corrections, in order to = eventually=20 still own the ones that moved up several hundred percent.
 
While times certainly have changed since then, and = I am=20 commenting from 10 year old memory, this article and the training by = his staff=20 back then taught me that a gain of 20% was reason to carefully examine = a=20 chart, and be able to articulate why I WAS NOT selling it. In other = words, it=20 was a reason to sell in the absence of more reasons to hold it, much = like=20 Katherine's rubberband rule. It forced a conscious examination of both = the=20 chart, the fundamentals and forecasts, and "M", and then a conscious,=20 pro-active decision making process (rather than the complacency of "I = am up=20 20% so I sell" or the "I am up 20% and this stock will keep rising=20 forever").
 
For me, that is one of the strengths of CANSLIM. = By having=20 some "rules" and guidelines, it forces a discipline and conscious = intelligent=20 process rather than just being a sheep following the herd, waiting for = the=20 shearing, if not the slaughter.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Chris Dempsey =
Sent: Monday, December 10, = 2001 1:22=20 PM
Subject: RE: [CANSLIM] = breakouts -=20 return to base

Katherine, David, and All others=20 interested
 
I=20 remember reading that WON says 40% of breakouts return to the base. = I=20 believe it is more than that. I'm not sure that it is 75%, but it = might be.=20 For that reason WON states in his book you must take some profits = when they=20 hit 20%. On one of the IBD tapes they state to profits in 1/2 of = positions=20 reaching 25%. These are because of the high rate of pull backs. If = you don't=20 do this then you are forced to use the rule, don't let a winner turn = into a=20 loser.
 
SCUR appears to be an example of a stock=20 returning/nearly returning to the base.
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 camelot.homes@charter.net
Sent: Monday, December 10, = 2001=20 9:49 AM
To: = canslim@lists.xmission.com
Subject: Re:=20 [CANSLIM] low volume breakouts

hi katherine , thank you so much = for this=20 very good information! when bulkowski states that stocks retrace = back to=20 the b/o piont 75% of the time is he talking about high or low = volume=20 breakouts? and where is the best place to get a copy of his book?=20 david
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Monday, December = 10, 2001=20 5:10 AM
Subject: Re: [CANSLIM] = low volume=20 breakouts

Hi David,
 
The question you ask is a good = one.=20 Demanding controlled study proof of a guideline like this is = important,=20 as it makes an underlying assumption about technical patterns = which may=20 or may not trigger a buy. I pulled out my "Encyclopedia of Chart = Patterns" by Thomas Bulkowski to answer this question. In this = book, the=20 author does statistical studies on chart formation and there is = an=20 entire chapter devoted to the C&H. = (pp.135-152).
 
Before I state the author's = conclusions, a=20 general overview of WON's theory as to why volume should be high = on the=20 breakout. That is, you are looking for the point at which demand = so=20 outweighs supply that the price moves up and onward. In my own = personal=20 experience, low volume breakouts seem to fall back more often = than not.=20 But these are "odds" not specifics. SONC is a good example = from=20 recent discussions on the list. Take a look at the daily chart = from 10/3=20 to now. You can see that SONC tried very hard on several days to = break=20 out of its consolidation, but fell back and eventually gapped = down. The=20 low volume B/O's don't always mean the stock will fail, just = that it's=20 not yet ready to move on. I like to have the odds in my favor, = so I'm=20 always willing to wait until there's proof of the = pudding.
 
Back to Bulkowski. In the = C&H=20 formation, the failure rate is 26%. If you wait for an upside = breakout,=20 the failure rate falls to 10%. Stocks retrace back to the B/O = point 75%=20 of the time (average time 12 days). Waiting for the throwback = increases=20 the success rate another 1%. Typical B/O volume is 180% above = the prior=20 day and stays high for the following week. Interestingly, he = says=20 removing the high volume B/O criteria does hurt performance, but = only=20 minimally. This is an excellent chapter on C&H and, based on = the=20 statistical evidence,  the author makes other conclusions = that lead=20 to particular trading tactics. There are several additional = criteria=20 that WON would require of a stock forming a C&H and then = breaking=20 out, such as rising RS, high group RS, underlying fundamental=20 characteristics, etc. that are not included in the author's = study. My=20 own conclusions, anecdotally, are that if these other criteria = are met=20 AND you get a high volume B/O, the odds are in your favor. (No=20 statistical studies to back that up, however!)
 
Katherine
 
 
----- Original Message -----
From:=20 camelot.homes@charter.net=20
Sent: Sunday, December = 09, 2001=20 5:44 PM
Subject: [CANSLIM] low = volume=20 breakouts

how often does a low volume = breakout=20 succeed  past the pivot point versus  a high volume = breakout=20 past the pivot point?=20 = david
- ------=_NextPart_000_0355_01C18292.80154C00-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 00:54:23 EST From: Spencer48@aol.com Subject: Re: [CANSLIM] breakouts - return to base Tom knows that this group (and especially me) appreciate the unselfish and unstinting contributions that he has made over the years. And I agree with Tom: This forum is fortunate that Katherine found CANSLIM and us. Not only does she write often and well (not to mention exhaustively), but her analyses are intricate and yet understandable. My only question, really, is Katherine: When do you take time out to breathe? ;) jans In a message dated 12/11/2001 12:10:22 AM Eastern Standard Time, stkguru@netside.net writes: << Thanks, John, Katherine has been a great addition to this group, and is both teaching me new stuff, as well as reminding me of many things I had forgotten along the way. I hope she keeps us all sharp for many more years to come. It's nice to be a part of, and able to contribute to, a board selected a few years back as one of the best five on the entire internet. I think it still ranks in the top five. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message ----- From: John Adair To: canslim@lists.xmission.com Sent: Monday, December 10, 2001 9:33 PM Subject: RE: [CANSLIM] breakouts - return to base Thanks to Katherine and Tom for their unbelievable effort to help the rest of us. You two make this board one of the best and worth all the time I spend reading it. >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1934 ****************************** 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.