From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2131 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 Sunday, February 17 2002 Volume 02 : Number 2131 In this issue: [CANSLIM] BUY CANDIDATES [CANSLIM] Belated Welcome Re: AW: [CANSLIM] Lack of Buy Candidates Re: [CANSLIM] Industry group movements. ---------------------------------------------------------------------- Date: Sun, 17 Feb 2002 11:21:22 EST From: Davellil5@aol.com Subject: [CANSLIM] BUY CANDIDATES I belong to an investment club in which I hear dissatisfaction with CANSLIM methodology because it says, "No", so often these days -- and produces so few buy candidates. I tell them that's exactly what one should expect from a rational stock selection system in this spooky market. Yet, there are stocks that buck the market and even buck their own industry groups, to make substantial gains. My problem is finding a fruitful hunting ground for such stocks, i.e., a hunting ground that, under existing market conditions, maximizes the number of buy candidates I find for the amoount of effort I expend in screening and research. Any suggestions would be most gratefully received. Dave Schwartz davellil5@aol.com - - - -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: Sun, 17 Feb 2002 11:24:58 -0500 From: "Gary A. Snyder" Subject: [CANSLIM] Belated Welcome Gang: Wow, thanks for the response. I am going to read and think about these e-mails. I just entered this chat line and was getting a lot of corrections because I was sending to majordomo. Also sent a welcome email to him. Course he don't give a darn, just gave me lot of error messages. As Won says stocks seem to run (as in go up) together. Don't some of these preachy tutorials in "Investor's Corner" give you a pain especially when the example does not qualify under WON teachings? I still read it every day. he he. Im saving everything Tom Worsley says: 75% speaks for itself. Currently I am very humble having got hit by a freight train with the symbol ACRT. I think that no one approach works all the time. A system that works in this environment of trading in a range and sector rotation does not work as well as another approach in a bull market where strong industrial groups stay high in the rating system for extended periods of time. Industrial groups strong in a bear market such as defensive groups like Funeral Homes (talk about sick), food/meat products( would you believe it) tank when the market thinks the economy has turned the corner. I want to stay ahead of the curve. Hope I can add to the common knowledge in a meaningful way. Always open to learn so have been reading the traffic the last week even though I couldn't make contact. Till next time: gas175k _________________________________________________________________ Chat with friends online, try MSN Messenger: http://messenger.msn.com - - - -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: Sun, 17 Feb 2002 10:57:49 -0600 From: "Katherine Malm" Subject: Re: AW: [CANSLIM] Lack of Buy Candidates This is a multi-part message in MIME format. - ------=_NextPart_000_0030_01C1B7A1.F045ABC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Tom, Your comments about EPIQ as a "big winner" in the portfolio remind me of = comments I often hear from others when we have discussions about the big = winners in our portfolios. On one hand, it really bugs me to hear people = say "well, yeah, of course you had great returns, you had XXXX an = YYYY....you were just lucky." Excuse me? I found XXXX and YYYY using the = same methodical diligence I apply to all my buys. The difference is, = these guys never triggered sell rules like all the others. Last Fall, I = listened to a presentation by Kevin Marder, a hedge fund manager and a = CANSLIM-style investor. He said the same thing that I've heard from = other successful investors. "At the end of each year I give my = accountant a list of my trades for tax purposes. On that list are a = bunch of trades with very small losses. Also on that list are some = really big gains that were responsible for most of my returns for the = year. This happens every year without exception." On the other hand, a comment such as "you were just lucky" makes me = smile and nod in agreement, because I define luck as "being prepared = when the opportunity arises and being willing to seize it." Yes, big = winners are about luck in that sense. Finally, one of my favorite quotes = and one that always stays in view at my desk: "Opportunities are usually disguised as hard work, so most people don't = recognize them." --Anne Landers Here's to "big winners" and your continued "good luck"! Cheers, Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 16, 2002 3:34 PM Subject: Re: AW: [CANSLIM] Lack of Buy Candidates Your memory is pretty good, altho I consider buying small caps as much closer to classic CANSLIM rules for "S" than IBD or WON currently = pushes. I wasn't losing money during the roaring bulls, just not making what I could. But that was not the fault of my application of CANSLIM, it was = a direct consequence of total neglect of my portfolio due dedication and = hours spent on my day job. But even with total neglect, I still managed = about 12% or so without trading, so at least better than a money market. You are correct also that EPIQ was a major contributor to my profits = in 2001, and I expect it to continue contributing in 2002. But I finished = the year with every stock I owned up for the year, and with minimal = trading. I only bought two new ones in 2001, the rest I had owned from prior = years. So far in 2002, I have added 6 new ones, and sold one (merger announced). = Altho three of the new ones are presently down, I am still up a little = overall. And having fun. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message ----- From: "esetser" To: Sent: Saturday, February 16, 2002 11:01 AM Subject: Re: AW: [CANSLIM] Lack of Buy Candidates Be careful here, Tom has his own special breed of CANSLIM, and it = seems that his returns have NOT been a good indicator of average returns in = the group. Unless I'm mistaken, Tom was losing money or breaking even = back in the roaring bull, so maybe it was just his turn!! Tom does at least the following different from my approach (just from memory): 1 - Microcaps only (below the minimum recommended by WON) (S?) 2 - Buys in the base before the breakout (Needs to because of 1) 3 - Doesn't use Industry Group Strength as a leader/laggard indicator = (I) 4 - Buys in all markets (M) >From my perspective, he violates the normal rules for S, I, and M. However, Tom does admit to this, and doesn't even generally post his selections due to these variations. Given the differences, I think it should be expected that Tom's = performance over a given year will vary from many of us. (And there is that one = stock that has appreciated several times his original investment that is impacting the results too!) One other note. From my perspective, Tom's value to the group is his willingness to take the time to review most anyone's suggestions and selections and give great detail in his responses. His general = approach may not follow CANSLIM exactly, but his postings to the group do = following WON quite closely. He is our master educator on the technique, and = gives a lot of time and effort to the group. FWIW, I ended up 2001 with about a 13% loss and am down about 6% more = this year so far. Presently, I am only 25% invested with one position. I = am not really responding on the group much, since I do not feel I have = the experience to short, and I am waiting for "M" to clear up before new purchases. At 11:36 AM 2/16/02 +0100, you wrote: >I think Tom bend only one rule --> stay out of the market if there is = a >downtrend in the overall market. > >But as I said, if you choose small caps and or IGs that are going up, = no >problem making money on the long side. >Just look on the builders or on the gold stocks latley ... > >BUT NEVER, NEVER buy stocks when the market and the IG is down. >I have not seen one example where a member of the group does not = break down >then (besides its a small cap) as well. > >Some IGs are just setting up a bull market for its members no matter = what >the market is doing. > >> -----Urspr=FCngliche Nachricht----- >> Von: Tom Worley [SMTP:stkguru@netside.net] >> Gesendet am: Saturday, February 16, 2002 6:19 AM >> An: canslim@lists.xmission.com >> Betreff: Re: [CANSLIM] Lack of Buy Candidates >> >> While I routinely violate CANSLIM rules, nonetheless my entire = process is >heavily based in CANSLIM. And I netted 76% for the full year, so = yeah, I >made a net profit. >> >> Tom Worley >> stkguru@netside.net >> AIM: TexWorley >> ----- Original Message ----- >> From: David Squires >> To: canslim@lists.xmission.com >> Sent: Saturday, February 16, 2002 12:11 AM >> Subject: Re: [CANSLIM] Lack of Buy Candidates >> >> >> haven't shorted in years, fully invested year round, made lots of = $$ >last year, and profitable so far this year (including my fully = margined >account). >> >> >>fully invested year round, made lots of $$ last year<< >> >> You were fully invested last year long and made a net profit? You >better call George Soros! BTW, is this even remotely CANSLIM. >> >> DSquires >> ----- Original Message ----- >> From: Tom Worley >> To: canslim@lists.xmission.com >> Sent: Friday, February 15, 2002 10:47 PM >> Subject: Re: [CANSLIM] Lack of Buy Candidates >> >> >> haven't shorted in years, fully invested year round, made lots = of $$ >last year, and profitable so far this year (including my fully = margined >account). >> >> Tom Worley >> stkguru@netside.net >> AIM: TexWorley >> ----- Original Message ----- >> From: Dan Forant >> To: canslim@lists.xmission.com >> Sent: Friday, February 15, 2002 8:03 PM >> Subject: Re: [CANSLIM] Lack of Buy Candidates >> >> >> Of course it's absurd. If anyone's been in the market for the = past >year and hasn't shorted and made $$, they are either very lucky or = far >better than the average investor. There was no shortage of stocks to = short >in TC2000 and candlesticks. >> >> L8ter >> DanF >> ----- Original Message ----- >> From: Ian >> To: canslim@lists.xmission.com >> Sent: Friday, February 15, 2002 11:13 AM >> Subject: Re: [CANSLIM] Lack of Buy Candidates >> >> >> I find it almost absurd that WON discourages shorting. = Almost all >of WON's ideas appear to have originated with Jesse Livermore, who = made the >bulk of his money on the short side. The rules for selling a big = CANSLIM >winner make for perfect short candidates. Although selling a failed >breakout as it returns into its base is NOT typically a good short >candidate. JMHO. >> >> Ian >> >> >> >> ----- Original Message ----- >> From: Rob Miller >> To: canslim@lists.xmission.com >> Sent: Friday, February 15, 2002 6:40 AM >> Subject: [CANSLIM] Lack of Buy Candidates >> >> >> Even if we have a FTD from here, I see few stocks worth = buying. > However, my short list is overflowing. The only moderately = attractive >stocks I see on the long side are those already in an uptrend that = are >riding their lower channel. >> >> Is shorting considered off limits for this list? I know = that >WON discourages it, but he also claimed to make good money from = shorts in >HTMMIS. As I understand it, he discourages it as a medium for the = masses, >nor necessarily for everyone. >> >> Rob >> << Datei: ATT00014.htm >> - -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_0030_01C1B7A1.F045ABC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Tom,
 
Your comments about EPIQ as a "big winner" in the portfolio remind = me of=20 comments I often hear from others when we have discussions about the big = winners=20 in our portfolios. On one hand, it really bugs me to hear people = say "well,=20 yeah, of course you had great returns, you had XXXX an YYYY....you were = just=20 lucky." Excuse me? I found XXXX and YYYY using the same methodical = diligence I=20 apply to all my buys. The difference is, these guys never triggered sell = rules=20 like all the others. Last Fall, I listened to a presentation by Kevin = Marder, a=20 hedge fund manager and a CANSLIM-style investor. He said the same thing = that=20 I've heard from other successful investors. "At the end of each year I = give my=20 accountant a list of my trades for tax purposes. On that list are a = bunch of=20 trades with very small losses. Also on that list are some really big = gains that=20 were responsible for most of my returns for the year. This happens every = year=20 without exception."
 
On the other hand, a comment such as "you were just lucky" makes me = smile=20 and nod in agreement, because I define luck as "being prepared when the=20 opportunity arises and being willing to seize it." Yes, big winners are = about=20 luck in that sense. Finally, one of my favorite quotes and one that = always stays=20 in view at my desk:
 
"Opportunities are usually disguised as hard work, so most people = don't=20 recognize them." --Anne Landers
 
Here's to "big winners" and your continued "good luck"!
 
Cheers,
Katherine
----- Original Message -----
From:=20 Tom = Worley=20
Sent: Saturday, February 16, = 2002 3:34=20 PM
Subject: Re: AW: [CANSLIM] Lack = of Buy=20 Candidates

Your memory is pretty good, altho I consider buying = small caps=20 as much
closer to classic CANSLIM rules for "S" than IBD or WON = currently=20 pushes.

I wasn't losing money during the roaring bulls, just = not making=20 what I
could. But that was not the fault of my application of = CANSLIM, it=20 was a
direct consequence of total neglect of my portfolio due = dedication=20 and hours
spent on my day job. But even with total neglect, I still = managed=20 about 12%
or so without trading, so at least better than a money=20 market.

You are correct also that EPIQ was a major contributor = to my=20 profits in
2001, and I expect it to continue contributing in 2002. = But I=20 finished the
year with every stock I owned up for the year, and = with=20 minimal trading. I
only bought two new ones in 2001, the rest I had = owned=20 from prior years. So
far in 2002, I have added 6 new ones, and sold = one=20 (merger announced). Altho
three of the new ones are presently down, = I am=20 still up a little overall.
And having fun.

Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From: "esetser" <esetser@covad.net>
To: = <canslim@lists.xmission.com= >
Sent:=20 Saturday, February 16, 2002 11:01 AM
Subject: Re: AW: [CANSLIM] = Lack of Buy=20 Candidates


Be careful here, Tom has his own special breed = of=20 CANSLIM, and it seems
that his returns have NOT been a good = indicator of=20 average returns in the
group.  Unless I'm mistaken, Tom was = losing=20 money or breaking even back in
the roaring bull, so maybe it was = just his=20 turn!!

Tom does at least the following different from my = approach (just=20 from
memory):

1 - Microcaps only (below the minimum = recommended by=20 WON) (S?)
2 - Buys in the base before the breakout (Needs to = because of=20 1)
3 - Doesn't use Industry Group Strength as a leader/laggard = indicator=20 (I)
4 - Buys in all markets (M)

>From my perspective, he = violates=20 the normal rules for S, I, and M.
However, Tom does admit to this, = and=20 doesn't even generally post his
selections due to these=20 variations.

Given the differences, I think it should be = expected that=20 Tom's performance
over a given year will vary from many of = us.  (And=20 there is that one stock
that has appreciated several times his = original=20 investment that is
impacting the results too!)

One other = note. =20 From my perspective, Tom's value to the group is his
willingness to = take=20 the time to review most anyone's suggestions and
selections and = give great=20 detail in his responses.  His general approach
may not follow = CANSLIM=20 exactly, but his postings to the group do following
WON quite=20 closely.  He is our master educator on the technique, and gives = a
lot=20 of time and effort to the group.

FWIW, I ended up 2001 with = about a 13%=20 loss and am down about 6% more this
year so far.  Presently, I = am only=20 25% invested with one position.   I am
not really = responding on=20 the group much, since I do not feel I have the
experience to short, = and I=20 am waiting for "M" to clear up before = new
purchases.




At=20 11:36 AM 2/16/02 +0100, you wrote:
>I think Tom bend only one = rule=20 --> stay out of the market if there is a
>downtrend in the = overall=20 market.
>
>But as I said, if you choose small caps and or = IGs that=20 are going up, no
>problem making money on the long = side.
>Just=20 look on the builders or on the gold stocks latley = ...
>
>BUT=20 NEVER, NEVER buy stocks when the market and the IG is down.
>I = have not=20 seen one example where a member of the group does not break = down
>then=20 (besides its a small cap) as well.
>
>Some IGs are just = setting up=20 a bull market for its members no matter what
>the market is=20 doing.
>
>> -----Urspr=FCngliche = Nachricht-----
>> Von:=20 Tom Worley [SMTP:stkguru@netside.net]
>> Gesendet am: = Saturday,=20 February 16, 2002 6:19 AM
>> An: canslim@lists.xmission.com=
>>=20 Betreff: Re: [CANSLIM] Lack of Buy Candidates
>>
>> = While I=20 routinely violate CANSLIM rules, nonetheless my entire process=20 is
>heavily based in CANSLIM. And I netted 76% for the full = year, so=20 yeah, I
>made a net profit.
>>
>> Tom=20 Worley
>> stkguru@netside.net
>> = AIM:=20 TexWorley
>>   ----- Original Message=20 -----
>>   From: David = Squires
>>   To:=20 canslim@lists.xmission.com=
>>  =20 Sent: Saturday, February 16, 2002 12:11 AM
>>   = Subject:=20 Re: [CANSLIM] Lack of Buy=20 Candidates
>>
>>
>>   haven't = shorted in=20 years, fully invested year round, made lots of $$
>last year, = and=20 profitable so far this year (including my fully=20 margined
>account).
>>
>>   = >>fully=20 invested year round, made lots of $$ last=20 year<<
>>
>>   You were fully = invested last=20 year long and made a net profit? You
>better call George Soros! = BTW, is=20 this even remotely CANSLIM.
>>
>>  =20 DSquires
>>     ----- Original Message=20 -----
>>     From: Tom=20 Worley
>>     To: canslim@lists.xmission.com=
>>    =20 Sent: Friday, February 15, 2002 10:47 = PM
>>    =20 Subject: Re: [CANSLIM] Lack of Buy=20 Candidates
>>
>>
>>     = haven't=20 shorted in years, fully invested year round, made lots of = $$
>last year,=20 and profitable so far this year (including my fully=20 = margined
>account).
>>
>>    = Tom=20 Worley
>>     stkguru@netside.net
>>&n= bsp;   =20 AIM: TexWorley
>>       ----- = Original=20 Message -----
>>       From: = Dan=20 Forant
>>       To: canslim@lists.xmission.com=
>>      =20 Sent: Friday, February 15, 2002 8:03=20 PM
>>       Subject: Re: = [CANSLIM] Lack=20 of Buy=20 = Candidates
>>
>>
>>    &nb= sp; =20 Of course it's absurd. If anyone's been in the market for the = past
>year=20 and hasn't shorted and made $$, they are either very lucky or=20 far
>better than the average investor. There was no shortage of = stocks=20 to short
>in TC2000 and=20 = candlesticks.
>>
>>      = =20 L8ter
>>      =20 DanF
>>         ----- = Original Message=20 -----
>>         = From:=20 Ian
>>         To: canslim@lists.xmission.com=
>>        =20 Sent: Friday, February 15, 2002 11:13=20 AM
>>         = Subject: Re:=20 [CANSLIM] Lack of Buy=20 = Candidates
>>
>>
>>    &nb= sp;   =20 I find it almost absurd that WON discourages shorting. Almost = all
>of=20 WON's ideas appear to have originated with Jesse Livermore, who made=20 the
>bulk of his money on the short side. The rules for selling = a big=20 CANSLIM
>winner make for perfect short candidates. Although = selling a=20 failed
>breakout as it returns into its base is NOT typically a = good=20 short
>candidate.=20 = JMHO.
>>
>>       &n= bsp;=20 = Ian
>>
>>
>>
>>   &nbs= p;    =20 ----- Original Message=20 = - -----
>>         &n= bsp;=20 From: Rob=20 = Miller
>>         &= nbsp;=20 To: canslim@lists.xmission.com=
>>           = Sent: Friday, February 15, 2002 6:40=20 = AM
>>          = ;=20 Subject: [CANSLIM] Lack of Buy=20 = Candidates
>>
>>
>>    &nb= sp;     =20 Even if we have a FTD from here, I see few stocks worth = buying.
>=20 However, my short list is overflowing.  The only moderately=20 attractive
>stocks I see on the long side are those already in = an=20 uptrend that are
>riding their lower=20 = channel.
>>
>>       = ;   =20 Is shorting considered off limits for this list?  I know = that
>WON=20 discourages it, but he also claimed to make good money from shorts=20 in
>HTMMIS.  As I understand it, he discourages it as a = medium for=20 the masses,
>nor necessarily for=20 = everyone.
>>
>>      &nbs= p;   =20 Rob
>>  << Datei: ATT00014.htm=20 >>




-
-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_0030_01C1B7A1.F045ABC0-- - - - -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: Sun, 17 Feb 2002 11:03:38 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] Industry group movements. This is a multi-part message in MIME format. - ------=_NextPart_000_0004_01C1B7A2.C09EC4A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hey Andreas, Outstanding examples....thanks for taking the time to post them. Katherine ----- Original Message -----=20 From: Andreas Himmelreich=20 To: 'canslim@lists.xmission.com'=20 Sent: Sunday, February 17, 2002 9:13 AM Subject: AW: [CANSLIM] Industry group movements. Hi, Once again a quote from http://beta.dailygraphs.com/tutorials/b04a.asp = - --> "Here's a case where herd mentality works to your advantage. Studies = show=20 37% of a stock's move is directly tied to the performance of the = industry=20 the stock is in. Another 12% is due to strength in its overall = sector." I put a file to http://WallStreet-LLC.com/pub/IGfiles.zip, which shows = the=20 correlation in an example. I found hundreds of them and still find = them=20 every day. Basically you can take the chart patterns and apply them to = industry groups and you will find very strong and dependable trends = where=20 false breakouts take place, but much less then with individual stocks. Here and example on the short side: http://WallStreet-LLC.com/pub/IGShortexample.zip Here an example for an IG that sets up a bull market for its members: http://WallStreet-LLC.com/pub/BullmarketforBuilders.zip Important is: Price and RS need to make new highs (lows for shorting) = our=20 of a base for a buy signal. For the long side I like IGs that cross RS = of=20 60 to 70. On the short side crossing RS of 30. But it can be also very profitable to get into trends that are well=20 established, e.g. where the RS is above 90, but then be sure that you = wait=20 for a second price and RS base and a second Breakout to get in and be = rigid=20 if the group shows sell signals. Best Regards Andreas And this is perfectly canslim, because Oneil states that if you go = with a=20 breakout, look if other stocks out of the group have or had a breakout = as=20 well ... > -----Urspr=FCngliche Nachricht----- > Von: Gary A. Snyder [SMTP:gas175k@hotmail.com] > Gesendet am: Sunday, February 17, 2002 2:30 PM > An: canslim@lists.xmission.com > Betreff: [CANSLIM] Industry group movements. > > > > > > I am fascinated by industry group movement but can't figure out what = move=20 > groups up and down. For example: EPIQ is for sure a fine investment = and I=20 > have owned it but the last big move it made from about 13 to 25 the=20 industry > group moved from at least the lower B group to 30-32. If the = industry=20 group > had not moved EPIQ would still be building a base. In the same group = BARZ=20 > went from 35 to 55, ADVS 29 to 51, FIC 39 to 63, BSYS 44 to 63. Even = thought > these companies offer completely different software to the financial > industry. A few months ago IBD used GNSS, a semi manufacture, as an=20 example > of a successful cup and handle but failed the mention that the = industry > group started up from a e rating and worked its way up to at least = the=20 mid b > rating, against WON rule look in the top sixty groups. Not just = GNSS,=20 all > the semi manufacturing stocks were going up even if they were over = bought=20 by > as much as 50%. You may think that you are picking good companies = and you=20 > are but they are not going anywhere until the industrial group is = going=20 up. > So what moves these industry groups? Some are easy to figure: = defense > stocks- government spending to increase dramatically per purposed = budget.=20 > Safety and security- the terrorist effect. Any computer group a = month=20 ago- I > don't have a clue. You don't want to know how poorly some of these=20 security > companies were rated when they started moving up and they are not > fundamentally good companies but that doesn't matter if the market=20 perceives > future growth. Some of these security companies have very poor=20 fundamentals > but that does not stop them from going through the roof if the = industry > group is on the rise. The rating on some of these companies look = great > now(after the fact). Lower oil prices helped the success of > transportation/trucking even in a bad economy but if the price of = oil=20 goes > up for any of a number of reasons, number one being Iraq targeted as = the > next enemy on the war on terrorism transportation/trucking will go = down=20 so > fast only bested by oil&gas/any company with proved oil reserves = going=20 up. > You don't have to pick the best company in the group. Throw a dart = at any=20 > company on the list for success. Home builders: low interest rates, > increased new home sales, increased building permits but let the = interest=20 > rates go up a little and home builders start correcting along with = home > mortgage businesses and banks living on refinancing income. In fact = let=20 an > influential analysis say interest rates have bottomed and all these=20 groups > start down no proof needed.Good companies along with bad. I'm = confused=20 and > bloodied but feel one key is tracking industry groups. I ask for = comment > and/or instruction. gas175k > > > > _________________________________________________________________ > MSN Photos is the easiest way to share and print your photos: > http://photos.msn.com/support/worldwide.aspx > > > - > -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. - ------=_NextPart_000_0004_01C1B7A2.C09EC4A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hey Andreas,
 
Outstanding examples....thanks for taking the time to post = them.
 
Katherine
----- Original Message -----
From:=20 Andreas = Himmelreich
Sent: Sunday, February 17, 2002 = 9:13=20 AM
Subject: AW: [CANSLIM] Industry = group=20 movements.

Hi,

Once again a quote from http://beta.daily= graphs.com/tutorials/b04a.asp=20 -->

"Here's a case where herd mentality works to your = advantage.=20 Studies show
37% of a stock's move is directly tied to the = performance of=20 the industry
the stock is in. Another 12% is due to strength in = its=20 overall sector."

I put a file to http://WallStreet-LLC.= com/pub/IGfiles.zip,=20 which shows the
correlation in an example. I found hundreds of = them and=20 still find them
every day. Basically you can take the chart = patterns and=20 apply them to
industry groups and you will find very strong and = dependable=20 trends where
false breakouts take place, but much less then with=20 individual stocks.

Here and example on the short = side:

http://WallStre= et-LLC.com/pub/IGShortexample.zip

Here=20 an example for an IG that sets up a bull market for its = members:

http://W= allStreet-LLC.com/pub/BullmarketforBuilders.zip

Important=20 is: Price and RS need to make new highs (lows for shorting) our
of = a base=20 for a buy signal. For the long side I like IGs that cross RS of
60 = to=20 70.
On the short side crossing RS of 30.

But it can be also = very=20 profitable to get into trends that are well
established, e.g. = where the RS=20 is above 90, but then be sure that you wait
for a second price and = RS base=20 and a second Breakout to get in and be rigid
if the group shows = sell=20 signals.

Best Regards

Andreas





And = this is=20 perfectly canslim, because Oneil states that if you go with a =
breakout,=20 look if other stocks out of the group have or had a breakout as =
well=20 ...






> -----Urspr=FCngliche = Nachricht-----
>=20 Von: Gary A. Snyder [SMTP:gas175k@hotmail.com]
> Gesendet am: = Sunday,=20 February 17, 2002 2:30 PM
> An: canslim@lists.xmission.com=
>=20 Betreff: [CANSLIM] Industry group=20 movements.
>
>
>
>
>
> I am = fascinated by=20 industry group movement but can't figure out what move
> groups = up and=20 down. For example: EPIQ is for sure a fine investment and I
> = have=20 owned it but the last big move it made from about 13 to 25 the=20
industry
> group moved from at least the lower B group to = 30-32. If=20 the industry
group
> had not moved EPIQ would still be = building a=20 base. In the same group BARZ
> went from 35 to 55, ADVS 29 to = 51, FIC=20 39 to 63, BSYS 44 to 63. Even
thought
> these companies = offer=20 completely different software to the financial
> industry. A few = months=20 ago IBD used GNSS, a semi manufacture, as an
example
> of a=20 successful cup and handle but failed the mention that the = industry
>=20 group started up from a e rating and worked its way up to at least the =
mid=20 b
> rating, against WON rule look in the top sixty groups.  = Not=20 just GNSS,
all
> the semi manufacturing stocks were going up = even if=20 they were over bought
by
> as much as 50%. You may think = that you=20 are picking good companies and you
> are but they are not going = anywhere until the industrial group is going
up.
> So what = moves=20 these industry groups? Some are easy to figure: defense
> = stocks-=20 government spending to increase dramatically per purposed budget. =
>=20 Safety and security- the terrorist effect. Any computer group a month =
ago-=20 I
> don't have a clue. You don't want to know how poorly some of = these=20
security
> companies were rated when they started moving up = and they=20 are not
> fundamentally good companies but that doesn't matter = if the=20 market
perceives
> future growth. Some of these security = companies=20 have very poor
fundamentals
> but that does not stop them = from going=20 through the roof if the industry
> group is on the rise. The = rating on=20 some of these companies look great
> now(after the fact). Lower = oil=20 prices helped the success of
> transportation/trucking even in a = bad=20 economy but if the price of oil
goes
> up for any of a = number of=20 reasons, number one being Iraq targeted as the
> next enemy on = the war=20 on terrorism transportation/trucking will go down
so
> fast = only=20 bested by oil&gas/any company with proved oil reserves going=20
up.
> You don't have to pick the best company in the group. = Throw a=20 dart at any
> company on the list for success. Home builders: = low=20 interest rates,
> increased new home sales, increased building = permits=20 but let the interest
> rates go up a little and home builders = start=20 correcting along with home
> mortgage businesses and banks = living on=20 refinancing income. In fact let
an
> influential analysis = say=20 interest rates have bottomed and all these
groups
> start = down no=20 proof needed.Good companies along with bad. I'm confused =
and
>=20 bloodied but feel one key is tracking industry groups. I ask for=20 comment
> and/or instruction. = gas175k
>
>
>
>=20 = _________________________________________________________________
>= MSN=20 Photos is the easiest way to share and print your photos:
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>
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