From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2687 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 Wednesday, July 31 2002 Volume 02 : Number 2687 In this issue: RE: [CANSLIM] Charts Re: [CANSLIM] DCOM - B/O rules Re: [CANSLIM] DCOM - B/O rules Re: [CANSLIM] DCOM - B/O rules Re: [CANSLIM] Charts -Do complain to the address [CANSLIM] SWBT, UCBH [CANSLIM] insider buys Re: [CANSLIM] DCOM - B/O rules ---------------------------------------------------------------------- Date: Wed, 31 Jul 2002 07:07:55 -0600 From: "David Taggart" Subject: RE: [CANSLIM] Charts This is a multi-part message in MIME format. - ------=_NextPart_000_0042_01C23860.FE8DB1B0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Not really if a stock sells off heavily in after hours it always sells off even heavier the next morning so while a regular chart wont show all of the volume it does paint the whole picture. If you do want to see afterhours volume you can either look at a time and sales or a tick chart they are the only tools I can think of off hand to see afterhours action after the fact. During afterhours you can also use a Level2. David Taggart -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Donald Wallker Sent: Wednesday, July 31, 2002 5:10 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Charts I'm under the impression that there is one thing you can't find in a chart. That is, the after hours trading volume. tThus it seems that the volume for the day is cast in concrete at the closing bell. Has anyone out there found a correlation between the volume of after hours trading and anything that occurs the next day? ----- Original Message ----- From: LP2715@aol.com To: canslim@lists.xmission.com Sent: Tuesday, July 30, 2002 10:45 PM Subject: [CANSLIM] Charts The one thing we like most about charts is that there is no "opinion" involved. In other words, what you see is what you get. If a stock has moved up to say the $100 level 3 times and got repelled each time, and now it's back to 99.88 it is there in "black and white" for all to see, and it is either going to bust through and make a nice run or it will get repelled yet again. No opinion, no talking heads, no guessing, nothing. It will either breakout or fail again. You cannot "alter the picture", so when you pull up a chart, it will show you exactly what has happened and on that information you can watch for the breakout. Learning how to play chart patterns is very important for us as traders, so please learn all you can about it. This next point is one of the single most important items involved with making successful chart trades. If a stock is testing a resistance level, such as in the example we used above, it will certainly help to have the "market" behind you when you are looking for the breakout. Remember that in day to day life, sector strength and overall market "tone" is the most important aspect of trading. In other words if the DOW is down 275 and the NASDAQ is down 100, what are the chances XYZ is going to bust through that resistance level and run? Not much really. On the other hand if the DOW is up 175 and the NASDAQ is flying, XYZ very well could squirt through that old resistance and make a great move higher. So, paramount in trading chart patterns is to try and align a great chart with an "up day". This will greatly enhance your chances of scoring home runs! For more trading tips just send a blank e-mail to: stocks2watch@GetResponse.com - ------=_NextPart_000_0042_01C23860.FE8DB1B0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Not=20 really if a stock sells off heavily in after hours it always sells = off even=20 heavier the next morning so while a regular chart wont show all of the = volume it=20 does paint the whole picture.  If you do want to see afterhours = volume you=20 can either look at a time and sales or a tick chart they are the only = tools I=20 can think of off hand to see afterhours action after the fact.  = During=20 afterhours you can also use a Level2.
 
David=20 Taggart
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Donald=20 Wallker
Sent: Wednesday, July 31, 2002 5:10 AM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 Charts

I'm under the impression that there = is one thing=20 you can't find in a chart. That is, the after hours trading = volume. =20 tThus it seems that the  volume for the day is cast in = concrete at=20 the closing bell.  Has anyone out there found a correlation = between the=20 volume of after hours trading and anything that occurs the next=20 day? 
----- Original Message -----
From:=20 LP2715@aol.com=20
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July 30, 2002 = 10:45=20 PM
Subject: [CANSLIM] = Charts

The one = thing
we=20 like most about charts is that there is no "opinion" involved. In = other=20 words,
what you see is what you get. If a stock has moved up to = say the=20 $100 level
3 times and got repelled each time, and now it's back = to=20 99.88 it is there in
"black and white" for all to see, and it is = either=20 going
to bust through and make a nice run or it will get = repelled yet=20 again. No opinion,
no talking heads, no guessing, nothing. It = will=20 either breakout or fail again.
You cannot "alter the picture", = so when=20 you pull up a chart, it will show you
exactly what has happened = and on=20 that information you can watch for the breakout.
Learning how to = play=20 chart patterns is very important for us as traders, so please =
learn all=20 you can about it.

This next point is one of the single most=20 important items involved with making successful
chart trades. If = a stock=20 is testing a  resistance level, such as in the example
we = used=20 above, it will certainly help to have the "market" behind you when = you=20
are looking for the breakout. Remember that in day to day life, = sector=20 strength
and overall market "tone" is the most important aspect = of=20 trading. In other words
if the DOW is down 275 and the NASDAQ is = down=20 100, what are the chances XYZ is
going to bust through that = resistance=20 level and run? Not much really. On the
other hand if the DOW is = up 175=20 and the NASDAQ is flying, XYZ very well could
squirt through = that old=20 resistance and make a great move higher. So, paramount
in = trading chart=20 patterns is to try and align a great chart with an "up day". =
This will=20 greatly enhance your chances of scoring home runs!

For more trading tips just send a blank e-mail = to:


stocks2watch@GetResponse.com

- ------=_NextPart_000_0042_01C23860.FE8DB1B0-- - - - -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, 31 Jul 2002 06:27:20 -0700 (PDT) From: Jack Tencza Subject: Re: [CANSLIM] DCOM - B/O rules Thanks Katherine for the chart and all your "outstanding" contributions to this site. Thanks Ann for the clarification question. I was sitting here looking at Katherine's markings on the chart and was hoping it was a simple transposition error. Jack - --- Katherine Malm wrote: > You're right, Ann. Simply a typo on my part. I'll > correct the chart notations and reupload it. > > Katherine > ----- Original Message ----- > From: Ann > To: canslim@lists.xmission.com > Sent: Wednesday, July 31, 2002 7:52 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Why isn't the pivot 26.00 (.10 above the midpoint > of 25.90)? > > ----- Original Message ----- > From: Katherine Malm > To: canslim@lists.xmission.com > Sent: Wednesday, July 31, 2002 8:01 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Hi Jack, > > I've uploaded a marked chart showing the pivot > point. Give it a couple of minutes before you try > the link as it'll take the 'bot a little time to > recognize the file. > > http://WallStreet-LLC.com/canslim/DCOM073002.jpg > > > Katherine > ----- Original Message ----- > From: Jack Tencza > To: canslim@lists.xmission.com > Sent: Wednesday, July 31, 2002 6:45 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Tom,did you mean to reply with your previous > reply? > > I too am a little fuzzy on what the the pivot > point is > with DCOM. The midpoint between the two dips > seems to > be 25.90 with the pivot being .10 above? Would > appreciate some help from someone? > > Many thanks. > > > > --- Tom Worley wrote: > > 7/10/02 > > > > ----- Original Message ----- > > From: "Jack Tencza" > > To: > > Sent: Wednesday, July 31, 2002 7:29 AM > > Subject: Re: [CANSLIM] DCOM - B/O rules > > > > > > Tom, what date are you using for midpoint > between > > the > > two dips with DCOM? Thanks > > --- Tom Worley > wrote: > > > I have to agree with IBD on this one, > Mike. No > > cup > > > & handle, definitely would call this a > double > > > bottom. Keep in mind with a double bottom > that > > you > > > don't want two dips of equal depth, rather > you > > want > > > the second one undercutting the first. > Same with a > > > triple bottom. In this case, the second > dip > > reached > > > its bottom on a reversal day and closed > up. > > However > > > volume was not that impressive. > > > > > > An aggressive investor (and would take one > in this > > > market) could have bought on 7/29, as it > did trade > > > over the high of the high of the center > point of > > the > > > "W" (but only by 4 cents, and volume not > > > impressive). But yesterday's volume and > price > > > movement would mark this in my books as a > b/o from > > a > > > double bottom. > > > > > > ----- Original Message ----- > > > From: Katherine Malm > > > To: canslim@lists.xmission.com > > > Sent: Wednesday, July 31, 2002 6:47 AM > > > Subject: Re: [CANSLIM] DCOM - B/O rules > > > > > > > > > Hi Mike, > > > > > > Here's a quote from today's "Big Picture" > > > Dime Community Bancshares (DCOM), which > was > > > highlighted in Monday evening's WebLink, > broke out > > > of a 10-week, double-bottom base. The > stock > > climbed > > > 1.46 to 26.90 on more than four times > normal > > volume. > > > > > > Katherine > > > > > > ----- Original Message ----- > > > From: Mike Gibbons > > > To: canslim@lists.xmission.com > > > Sent: Tuesday, July 30, 2002 11:37 PM > > > Subject: RE: [CANSLIM] DCOM - B/O rules > > > > > > > > > I see it more as a cup-with-handle (but > when the > > > only tool you have is a hammer, everything > looks > > > like a nail!) because the two dips were > not of > > equal > > > depth, but I'm not sure what the tolerance > limits > > > are. > > > > > > However, as a CwH it formed a pivot at > $25.90 on > > > 7/10. It then went on to dip to a low of > $20.20 in > > > the handle, which was a 22% drop. WON says > that a > > > stock should only correct by at most 15% > in the > > > handle (although there are inconsistent > statements > > > on this) so it didn't qualify as a CwH > either (but > > > then virtually nothing has in the last > couple of > > > weeks). Nevertheless, todays breakout was > very > > > strong and could be buyable up to $27.12 > (5% above > > > pivot). > > > > > > Aloha, > > > > > > Mike Gibbons > > > Proactive Technologies, LLC > > > http://www.proactech.com > > > -----Original Message----- > > > From: owner-canslim@lists.xmission.com > > > > [mailto:owner-canslim@lists.xmission.com]On Behalf > > > Of Katherine Malm > > > Sent: Tuesday, July 30, 2002 2:46 PM > > > To: canslim@lists.xmission.com > > > Subject: Re: [CANSLIM] DCOM - B/O > rules > > > > > > > > > Hi Victor, > > > > > > I'll leave the specific analysis of > the DCOM > > > chart to somebody else, but in the > meantime, > > here's > > > something to get you started: > > > > > > Question > > > Can a double-bottom base have > a > > handle, > > > or is it just the start of another base? > > > > > > Answer > > > In a double-bottom base, the > pivot > > (buy) > === message truncated === ===== Jack __________________________________________________ Do You Yahoo!? Yahoo! Health - Feel better, live better http://health.yahoo.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: Wed, 31 Jul 2002 06:39:14 -0700 (PDT) From: Jack Tencza Subject: Re: [CANSLIM] DCOM - B/O rules Thanks Tom. I was looking for 26 on the 29th which is .10 above the pivot point per the book. I use these discussions as conformation that I'm actually learning the CANSLIM rules/process. Your messages are one of the several I read thoroughly and got into too much "by the book" with your email earlier today. Thanks for helping us new lads. It's very much appreciated. - --- Tom Worley wrote: > I did reply, Jack, July 10, 2002 - came thru fine > here. Hit a high of 25.90, > closed at 25.50. A break over 25.90, which happened > July 29, 2002, would > signal a break out. However, volume that day was not > heavy enough for me, > and only eclipsed the mid point by 4 cents, so > combine that with shaky "M" > and it would have been wiser to wait for the better > price action and volume > yesterday. > > Of course, today may take all that logic and > reasoning off the table > > ----- Original Message ----- > From: "Jack Tencza" > To: > Sent: Wednesday, July 31, 2002 7:45 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Tom,did you mean to reply with your previous reply? > > I too am a little fuzzy on what the the pivot point > is > with DCOM. The midpoint between the two dips seems > to > be 25.90 with the pivot being .10 above? Would > appreciate some help from someone? > > Many thanks. > > > > --- Tom Worley wrote: > > 7/10/02 > > > > ----- Original Message ----- > > From: "Jack Tencza" > > To: > > Sent: Wednesday, July 31, 2002 7:29 AM > > Subject: Re: [CANSLIM] DCOM - B/O rules > > > > > > Tom, what date are you using for midpoint between > > the > > two dips with DCOM? Thanks > > --- Tom Worley wrote: > > > I have to agree with IBD on this one, Mike. No > > cup > > > & handle, definitely would call this a double > > > bottom. Keep in mind with a double bottom that > > you > > > don't want two dips of equal depth, rather you > > want > > > the second one undercutting the first. Same with > a > > > triple bottom. In this case, the second dip > > reached > > > its bottom on a reversal day and closed up. > > However > > > volume was not that impressive. > > > > > > An aggressive investor (and would take one in > this > > > market) could have bought on 7/29, as it did > trade > > > over the high of the high of the center point of > > the > > > "W" (but only by 4 cents, and volume not > > > impressive). But yesterday's volume and price > > > movement would mark this in my books as a b/o > from > > a > > > double bottom. > > > > > > ----- Original Message ----- > > > From: Katherine Malm > > > To: canslim@lists.xmission.com > > > Sent: Wednesday, July 31, 2002 6:47 AM > > > Subject: Re: [CANSLIM] DCOM - B/O rules > > > > > > > > > Hi Mike, > > > > > > Here's a quote from today's "Big Picture" > > > Dime Community Bancshares (DCOM), which was > > > highlighted in Monday evening's WebLink, broke > out > > > of a 10-week, double-bottom base. The stock > > climbed > > > 1.46 to 26.90 on more than four times normal > > volume. > > > > > > Katherine > > > > > > ----- Original Message ----- > > > From: Mike Gibbons > > > To: canslim@lists.xmission.com > > > Sent: Tuesday, July 30, 2002 11:37 PM > > > Subject: RE: [CANSLIM] DCOM - B/O rules > > > > > > > > > I see it more as a cup-with-handle (but when > the > > > only tool you have is a hammer, everything looks > > > like a nail!) because the two dips were not of > > equal > > > depth, but I'm not sure what the tolerance > limits > > > are. > > > > > > However, as a CwH it formed a pivot at $25.90 > on > > > 7/10. It then went on to dip to a low of $20.20 > in > > > the handle, which was a 22% drop. WON says that > a > > > stock should only correct by at most 15% in the > > > handle (although there are inconsistent > statements > > > on this) so it didn't qualify as a CwH either > (but > > > then virtually nothing has in the last couple of > > > weeks). Nevertheless, todays breakout was very > > > strong and could be buyable up to $27.12 (5% > above > > > pivot). > > > > > > Aloha, > > > > > > Mike Gibbons > > > Proactive Technologies, LLC > > > http://www.proactech.com > > > -----Original Message----- > > > From: owner-canslim@lists.xmission.com > > > [mailto:owner-canslim@lists.xmission.com]On > Behalf > > > Of Katherine Malm > > > Sent: Tuesday, July 30, 2002 2:46 PM > > > To: canslim@lists.xmission.com > > > Subject: Re: [CANSLIM] DCOM - B/O rules > > > > > > > > > Hi Victor, > > > > > > I'll leave the specific analysis of the DCOM > > > chart to somebody else, but in the meantime, > > here's > > > something to get you started: > > > > > > Question > > > Can a double-bottom base have a > > handle, > > > or is it just the start of another base? > > > > > > Answer > > > In a double-bottom base, the pivot > > (buy) > > > point typically occurs when the stock clears the > > > peak in the middle of the W-shaped pattern. > > > Sometimes, double bottoms will form handles > before > > > they reach this point. In those situations, the > > > pivot point is when the stock clears the highest > > > price point in the handle area. The handle > should > > > drift downward slightly and usually form over a > > > period of one to seven weeks. > > > > > > Course 1 in the IBD Learning Center on > > our > > > Web site has a lesson on chart reading. To get > > there > > > directly, go to this link - > > > http://www.investors.com/learn/B09.asp > > > > > > Also, go to our Investor's Corner > > archive > > > entitled "What Can Technical Indicators Tell > Me?" > > to > > > view past articles on this topic - > > > http://www.investors.com/learn/IC.asp#tech > > > > > > Our "Ask Bill O'Neil" archive offers a > > > compilation of Q&A's on the subject of chart > > reading > > > at this link - > > > > > > http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=5 > > > > > > --Katherine > > > > > > ----- Original Message ----- > > > From: vchang@win-invest.com > > > To: canslim@lists.xmission.com > > > Sent: Tuesday, July 30, 2002 7:18 PM > > > Subject: [CANSLIM] DCOM - B/O rules > === message truncated === ===== Jack __________________________________________________ Do You Yahoo!? Yahoo! Health - Feel better, live better http://health.yahoo.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: Wed, 31 Jul 2002 07:52:45 -0600 From: "Patrick Wahl" Subject: Re: [CANSLIM] DCOM - B/O rules Something about this one tells me that while the IBD might call it a breakout now, if the breakout failed this is the sort of stock they would put in the Investors Corner as an example of the sort of breakout you shouldn't buy. No handle, of course it failed (they will say). I would be a little wary of this one. On 31 Jul 2002 at 5:47, Katherine Malm wrote: > Here's a quote from today's "Big Picture" > Dime Community Bancshares (DCOM), which was highlighted in Monday evening's > WebLink, broke out of a 10-week, double-bottom base. The stock climbed 1.46 > to 26.90 on more than four times normal volume. - - - -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, 30 Jul 2002 20:40:30 -0700 From: "Bill Triffet" Subject: Re: [CANSLIM] Charts -Do complain to the address Just a heads up. Do not send any spam complaints to the either the sender (will bounce) or the referered address. It will only confirm your address for future spam. I have an on going game with these types: I subscribe their sales and support staff to their own spam or other spam broadcasters. It's really a good way to vent. (g) - -Bill - ----- Original Message ----- From: To: Sent: Tuesday, July 30, 2002 7:45 PM Subject: [CANSLIM] Charts > The one thing > we like most about charts is that there is no "opinion" involved. In move higher. So, > paramount > in trading chart patterns is to try and align a great chart with an "up day". > > This will greatly enhance your chances of scoring home runs! > > For more trading tips just send a blank e-mail to: > snip > - - - -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, 31 Jul 2002 10:12:14 -0400 From: "Ann" Subject: [CANSLIM] SWBT, UCBH Did SWBT break out yesterday (pivot 36.83), or is it trying to form a handle now? And it looks as though UCBH would break out at pivot 41.88, but may not get enough volume. Ann - - - -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, 31 Jul 2002 08:15:17 -0600 From: "Patrick Wahl" Subject: [CANSLIM] insider buys
I guess this is good news, Hulbert on insider buys -

http://makeashorterlink.com/?Z27115661



This kinda reminded me of another quote, Winston Churchill (no, I'm not making fun of anyone here,  Donald kind of got me thinking of the guy ), although I don't think it was bear markets Churchill had in mind when he said this.


"This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." Speech given at the Lord Mayor's Luncheon, Mansion House, London, November 10, 1942.


Other good Churchill quotes here (check out the Finest Hour quote) -


http://www.winstonchurchill.org/bonmots.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. ------------------------------ Date: Wed, 31 Jul 2002 07:49:26 -0700 From: "zillagirl" Subject: Re: [CANSLIM] DCOM - B/O rules This is a multi-part message in MIME format. - ------=_NextPart_000_001B_01C23866.CADE9680 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I have a question. Maybe someone can explain for me. When I look at the = chart attached-it looks to me like marketmakers are running it up and = shaking it out. I guess I dont understand what is going on with the = buyers to form the double bottom and triple bottoms. Any thoughts = please?? ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 3:47 AM Subject: Re: [CANSLIM] DCOM - B/O rules Hi Mike, Here's a quote from today's "Big Picture" Dime Community Bancshares (DCOM), which was highlighted in Monday = evening's WebLink, broke out of a 10-week, double-bottom base. The stock = climbed 1.46 to 26.90 on more than four times normal volume. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 11:37 PM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you have = is a hammer, everything looks like a nail!) because the two dips were = not of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then went = on to dip to a low of $20.20 in the handle, which was a 22% drop. WON = says that a stock should only correct by at most 15% in the handle = (although there are inconsistent statements on this) so it didn't = qualify as a CwH either (but then virtually nothing has in the last = couple of weeks). Nevertheless, todays breakout was very strong and = could be buyable up to $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody = else, but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just the = start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point typically = occurs when the stock clears the peak in the middle of the W-shaped = pattern. Sometimes, double bottoms will form handles before they reach = this point. In those situations, the pivot point is when the stock = clears the highest price point in the handle area. The handle should = drift downward slightly and usually form over a period of one to seven = weeks. Course 1 in the IBD Learning Center on our Web site has a = lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What Can = Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of Q&A's = on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o from = a double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 = Monday, just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, = this seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to have = b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and that = is above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is 378% = up from the day before and four times the average daily volume of 221,100 What is the exact rule for a breakout mathematically? (Lets say = that I were to program it in say Metastock?) Base on this case I can see two rules at least (in pseudo-code): IF today's high is greater than the previous high (is this the = all time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume (is = this some sort of moving average of the daily volume, or just yeaterday's = volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M for a = moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_001B_01C23866.CADE9680 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I have a question. Maybe someone can = explain for=20 me.  When I look at the chart attached-it looks to me like = marketmakers are=20 running it up and shaking it out. I guess I dont understand what is = going on=20 with the buyers to form the double bottom and triple bottoms.  Any = thoughts=20 please??
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Wednesday, July 31, 2002 = 3:47=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Hi Mike,
 
Here's a quote from today's "Big Picture"

Dime Community Bancshares (DCOM),=20 which was highlighted in Monday = evening's=20 WebLink, broke out of a 10-week, double-bottom base. The = stock=20 climbed 1.46 to 26.90 on more than four times normal volume.

Katherine

----- Original Message -----
From:=20 Mike Gibbons
Sent: Tuesday, July 30, 2002 = 11:37=20 PM
Subject: RE: [CANSLIM] DCOM - = B/O=20 rules

I=20 see it more as a cup-with-handle (but when the only tool you have is = a=20 hammer, everything looks like a nail!) because the two dips were not = of=20 equal depth, but I'm not sure what the tolerance limits=20 are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. It = then went=20 on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says=20 that a stock should only correct by at most 15% in the handle = (although=20 there are inconsistent statements on this) so it didn't qualify as a = CwH=20 either (but then virtually nothing has in the last couple of weeks). = Nevertheless, todays breakout was very strong and could be buyable = up to=20 $27.12 (5% above pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to = somebody else,=20 but in the meantime, here's something to get you started:
 
Question
  Can a double-bottom base have a handle, = or is it=20 just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the pivot=20 (buy) point typically occurs when the stock clears the peak = in the=20 middle of the W-shaped pattern. Sometimes, = double=20 bottoms will form handles before they reach this point. In = those=20 situations, the pivot point is when the stock clears the = highest=20 price point in the handle area. The handle should drift = downward=20 slightly and usually form over a period of one to seven=20 weeks.

Course 1 in the IBD Learning Center on our Web = site=20 has a lesson on chart reading. To get there directly, go to = this=20 link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive entitled = =93What Can=20 Technical Indicators Tell Me?=94 to view past articles on = this topic -=20 http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link - = = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com =
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July 30, = 2002 7:18=20 PM
Subject: [CANSLIM] DCOM - = B/O=20 rules

MessageOn Wedsday's edition (today) IBD listed = DCOM as=20 b/o from a double
bottom.  On Tuesday IBD weblink said " = ...=20 Dime hit 25.94 Monday, just
missing a breakout..." = .

As a=20 newbie trying to learn more about charts and breakouts, this = seems=20 like
a great example to check my understanding.

If I = am=20 getting it right, the reason why DCOM is deemed to have b/o=20 is
because of the following two easons:

a) It closed = at 26.90=20 having achieved an high of 27.0, and that is above = the
previous high=20 of 26.80 back in May 17, 2002.

b) The new high was = achieved at a=20 volume 1,056,800 which is 378% up from the
day before and = four times=20 the average daily volume of 221,100

What is the exact = rule for a=20 breakout mathematically? (Lets say that I were
to program it = in say=20 Metastock?)

Base on this case I can see two rules at = least (in=20 pseudo-code):

IF today's high is greater than the = previous high=20 (is this the all time high
or just the rolling 52 week=20 high?)
AND
IF today's volume is greater than N times the = normal=20 volume (is this some
sort of moving average of the daily = volume, or=20 just yeaterday's volume)
THEN yippe it is a = B/O

Is  there=20 any "fuzziness" to the above rules?

BTW, the fundamentals = on DCOM=20 also look great, ignoring M for a moment, is
this a valid = CANSLIM=20 candidate stock?

Rgds

Victor=20 = Chang


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