From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2793 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, August 13 2002 Volume 02 : Number 2793 In this issue: Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Re: [CANSLIM] Re:Entry purchase Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Re: [CANSLIM] Re:Entry purchase Re: [CANSLIM] cup-without-handle; "tightness" questions ---------------------------------------------------------------------- Date: Tue, 13 Aug 2002 22:18:14 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Kelly, WON usually focuses on the CEO position, not the CFO, since the CEO is the operational manager. The departure of a CFO unexpectedly can be a negative especially right now because it makes a company's prior financial reporting and current health questionable. But the CFO has little to do with the marketing strategy, acquisition plans, etc of the corporation. It is the Board that may set broad goals, but the CEO that will carry them out. And execution is the key. There is both short and long term implications to a new CEO. Short term, he (sometimes, but not often enough she) comes in and cleans house. Gets rid of all the dead wood. Terminates a product line that was an old favorite five years ago, but hasn't made money since. Cuts personnel staffing. Closes obsolete facilities. Basically strives for a lean, mean, financially sound business. The market usually will like that cost cutting, more efficient (and usually profitable) approach short term. After that, the market looks at the long term plan (and execution) to increase market share, build the business, increase profits. It takes a lot longer for a new CEO to deliver on that, a year or more easily. Sometimes the Board / markets will not give a new CEO that much time, especially if early progress is not being perceived. I read an article over the weekend on the business life expectancy of a CEO, has been dropping lately, and now around 3 years. Not even as long as we give a new President!! - ----- Original Message ----- From: "Kelly Short" To: Sent: Tuesday, August 13, 2002 4:23 PM Subject: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure A question for the group- WON says to look for companies that have new management. However, many group members see the departure of a top exec as a red flag (i.e. CFO). But, wouldn't the addition of a new management member almost always follow the departure of a management member? Where do you draw the line? - - - -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: Tue, 13 Aug 2002 22:26:26 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re:Entry purchase This is a multi-part message in MIME format. - ------=_NextPart_000_00BC_01C24318.76B7D370 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Morris, unless you are extremely aggressive, I would not suggest buying = more than a half position. And, frankly, even considering buying in this = "M" already says you are aggressive, which is not recommended. You are = still fighting a trend, you want the trend to be your friend, not your = opponent. - ----- Original Message -----=20 From: E2moskow@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 13, 2002 9:24 PM Subject: [CANSLIM] Re:Entry purchase Hi Canslim Pros:=20 Assuming the M is going to turn, ( it didn't look that way today), = what are good parameters to consider when making an entry purchase. How = many shares is it wise to buy. This is a subject that hasn't been = discussed, what is WON's idea as=20 an entry?=20 Morris=20 - ------=_NextPart_000_00BC_01C24318.76B7D370 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Morris, unless you are extremely aggressive, I = would not=20 suggest buying more than a half position. And, frankly, even considering = buying=20 in this "M" already says you are aggressive, which is not recommended. = You are=20 still fighting a trend, you want the trend to be your friend, not your=20 opponent.
 
----- Original Message -----=20
From: E2moskow@aol.com=20
Sent: Tuesday, August 13, 2002 9:24 PM
Subject: [CANSLIM] Re:Entry purchase

Hi Canslim = Pros:=20
    Assuming the M is going to turn, ( it didn't = look=20 that way today), what are good parameters to consider when making an = entry=20 purchase.  How many shares is it wise to buy.  This is a = subject that=20 hasn't been discussed, what is WON's idea as
an entry? =
Morris=20 - ------=_NextPart_000_00BC_01C24318.76B7D370-- - - - -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, 13 Aug 2002 22:31:13 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) This is a multi-part message in MIME format. - ------=_NextPart_000_00C8_01C24319.2185B790 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Nancy, haven't seen the chart you mention, but from the description the = key is volume dropping on the sideways move. Also, accumulation / = distribution is a very lagging indicator from my experience, I almost = never consider it in buy / hold / sell arguments with myself (I usually = lose!!). Being in the top 5 of its group, however, speaks to the "L" in = CANSLIM. - ----- Original Message -----=20 From: NANCY POLCARO=20 To: canslim=20 Sent: Tuesday, August 13, 2002 10:06 PM Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Can you explain something for me? On the IBD wtw chart points 2 and 3. = I would have seen volumn dropping and the stock moving sideway and = thought it was about to take a dive. Instead, in this chart they said = it was good action. Am I wrong? I know in hindsite I can see what the = chart did, but not as it happened. Also it's group is D, its got an = acc/dist. of D and its 5 of the top 5 stocks. Would this keep you from = entering even though it has a breakout on high volumn? =20 ----- Original Message ----- From: Katherine Malm Sent: Tuesday, August 13, 2002 7:33 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Hi Mike, WTW didn't have the smoothest base, but it was a 12 week base = nonetheless. That's not unusual given the gyrations of the market as it's been = groping for this latest bottom. So that you can see my personal take on it, = I've annotated the chart at: http://WallStreet-LLC.com/canslim/WTW081302.jpg Gene noted that WTW is also featured in IBD's weblink today. They have = also annotated a chart, so you can see their interpretation at: http://www.investors.com/weblink/ Katherine ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 8:50 AM Subject: Re: [CANSLIM] Which One Is Better - Updated Katherine, Can you expound on the statement that WTW broke out? In looking at = the chart, I can sorta see a v shaped cwh, but in the handle, the volume = did NOT dry up.....what would you say the pivot point was? Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com "Katherine Malm" To: canslim@lists.xmission.com Sent by: cc: owner-canslim@lists.xm Subject: Re: = [CANSLIM] Which One Is Better - Updated ission.com 08/12/2002 08:02 PM Please respond to canslim You know, I have a simple solution for this kind of dilemma....don't = use the numbers. I know it's tempting to use a number like this, as it seems to "tell = you everything" about the stock. But I think once you summarize summary numbers, you're asking for trouble. I rank the composite score as = "mildly useful." Here's an example. I'll select a couple of stocks that have come up = for discussion here in the last few months: WTW and TOL. Scores? WTW =3D 96 TOL =3D 95 Yet, look at the charts. WTW broke out today, TOL is rolling over and playing dead. Doesn't sound like a score of 95/96 "tells" me = everything I need to know about the stocks. Katherine ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 7:41 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Arghhh! Same definition Same data base Same company different numbers! ----- Original Message ----- From: Bill Triffet To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 6:58 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Either way, it appears that the IBD data paints a prettier picture of = the stocks. -Bill ----- Original Message ----- From: "Gene Ricci" To: Sent: Monday, August 12, 2002 4:50 PM Subject: Re: [CANSLIM] Which One Is Better - Updated I just had today's update figures for DGO sent to me. The 3 columns are 8/9 DGO data 8/12 IBD readings 30 minutes ago 8/12 DGO just received today's download Hi Katherine, I hadn't checked today and after reading your note, I 'thought' I was in error. However, I just went and checked several stocks: 8/9 8/12 8/12 DGO IBD DGO AAON 85 86 83 AIR 38 55 32 ABCB 89 90 90 ABM 77 85 75 ABN 58 67 58 ACE 69 86 71 ACMR 92 95 92 AES 24 30 25 AFCE 72 79 74 AFL 92 95 91 The first ten (10) I checked showed different numbers. My question still stands, which one is better? Gene ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 5:47 PM Subject: Re: [CANSLIM] Which One Is Better Hi Gene, There seems to be conflicting information on this...See DGO's reply to = my recent inquiry (7/31) about the very same thing: Hi Katherine, Thank you for your recent email to Daily Graphs Online. I apologize, but the recent additions to our services have not yet = been reflected in our Image Maps resource. We plan on making the update = soon. TO address your question, I would like to confirm that the Composite Rating you see on our service is the same SmartSelect=AE Composite Rating = that is provided by the Investor's Business Daily and investors.com. Please write back if you have any questions or need assistance. Best regards, Dan Daily Graphs Online www.dailygraphs.com ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 4:06 PM Subject: [CANSLIM] Which One Is Better Let's see, IBD provides an Overall Rating and now DGO provides a = Composite Rating. Has anyone determined which one is better? Gene The new SmartSelect=AE Composite Rating in Investor's Business Daily = and the Stock Checkup Overall Rating found on investors.com are based on different formulas. The SmartSelect=AE Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included = in the formula. Results are then compared to all other companies, and = each company is assigned a rating from 1-99 with 99 being the best. This rating is designed to help you get a quick feel for how a company's SmartSelect=AE Ratings compare to all other stocks in our database. = This is intended to be an additional tool to help you find the stocks with the highest SmartSelect=AE Ratings, quickly and easily. The Overall Rating in the Stock Checkup is determined by a proprietary formula incorporating all five of the Stock Checkup ratings. These are the Technical Rating, Fundamental Rating, Attractiveness Rating, = Group's Technical Rating and Group's Fundamental Rating. The Stock Checkup = uses over 30 different variables including all the SmartSelect=AE Ratings = to calculate the Overall Rating. When using the Stock Checkup, focus not only on the Overall Rating but all 6 of the Checkup Ratings. Also = study how the stock compares to its group within the individual Checkup Ratings. - -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. - -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_00C8_01C24319.2185B790 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Nancy, haven't seen the chart you = mention, but from=20 the description the key is volume dropping on the sideways move. Also,=20 accumulation / distribution is a very lagging indicator from my = experience, I=20 almost never consider it in buy / hold / sell arguments with myself (I = usually=20 lose!!). Being in the top 5 of its group, however, speaks to the "L" in=20 CANSLIM.
 
----- Original Message -----=20
From: NANCY = POLCARO
To: canslim
Sent: Tuesday, August 13, 2002 10:06 PM
Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better -=20 Updated)

Can you explain something for me?  On the IBD wtw chart points = 2 and=20 3.  I would have seen volumn dropping and the stock moving sideway = and=20 thought it was about to take a dive.  Instead, in this chart they = said it=20 was good action.  Am I wrong?  I know in hindsite I can see = what the=20 chart did, but not as it happened.   Also it's =  group is D,=20 its got an acc/dist. of D and its 5 of the top 5 stocks.  Would = this keep=20 you from entering even though it has a breakout on high=20 volumn?  
 
----- Original Message -----
From:=20 Katherine Malm
Sent: Tuesday, August 13, 2002 = 7:33=20 AM
To: = canslim@lists.xmission.com
Subject: [CANSLIM] Re: WTW = (was: Which=20 One Is Better - Updated)
 
Hi Mike,

WTW didn't have the smoothest base, = but it=20 was a 12 week base nonetheless.
That's not unusual given the = gyrations of=20 the market as it's been groping
for this latest bottom. So that you = can see=20 my personal take on it, I've
annotated the chart=20 = at:

http://WallStreet-LLC.com/canslim/WTW081302.jpg


Gen= e=20 noted that WTW is also featured in IBD's weblink today. They have=20 also
annotated a chart, so you can see their interpretation=20 = at:

http://www.investors.com/weblink/

Katherine

----= - -=20 Original Message -----
From: = <michael_niemotka@baxter.com>
To:=20 <canslim@lists.xmission.com>
Sent: Tuesday, August 13, 2002 = 8:50=20 AM
Subject: Re: [CANSLIM] Which One Is Better -=20 Updated



Katherine,

Can you expound on the = statement that=20 WTW broke out?  In looking at the
chart, I can sorta see a v = shaped=20 cwh, but in the handle, the volume did
NOT dry up.....what would = you say=20 the pivot point was?

Thanks

Mike Niemotka , PE
Sr. = Principal=20 Engineer
Baxter Healthcare Corporation
Route 120 & Wilson=20 Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847)=20 = 270-4525
michael_niemotka@baxter.com



   =             &= nbsp;   =20 "Katherine=20 = Malm"
          &nbs= p;        =20 = <kmalm@earthlink.net>       &nbs= p;=20 = To:
canslim@lists.xmission.com
      =             &= nbsp;=20 Sent=20 = by:           &nbs= p;         =20 = cc:
           =         =20 owner-canslim@lists.xm       =20 Subject:     Re: [CANSLIM]
Which One Is Better = - -=20 = Updated
          &n= bsp;        =20 = ission.com


        &nb= sp;          =20 08/12/2002 08:02=20 = PM
           &= nbsp;       =20 Please respond=20 = to
           &= nbsp;       =20 canslim






You know, I have a simple solution = for this=20 kind of dilemma....don't use
the numbers.

I know it's = tempting to=20 use a number like this, as it seems to "tell you
everything" about = the=20 stock. But I think once you summarize summary
numbers, you're = asking for=20 trouble. I rank the composite score as = "mildly
useful."

Here's an=20 example. I'll select a couple of stocks that have come up = for
discussion=20 here in the last few months: WTW and TOL.

Scores?
WTW =3D = 96
TOL =3D=20 95

Yet, look at the charts. WTW broke out today, TOL is rolling = over=20 and
playing dead. Doesn't sound like a score of 95/96 "tells" me = everything=20 I
need to know about the stocks.

Katherine
----- Original = Message=20 -----
From: Gene Ricci
To: canslim@lists.xmission.com
Sent: = Monday,=20 August 12, 2002 7:41 PM
Subject: Re: [CANSLIM] Which One Is Better = - -=20 Updated

Arghhh!
Same definition
Same data base
Same=20 company
different numbers!
----- Original Message -----
From: = Bill=20 Triffet
To: canslim@lists.xmission.com
Sent: Monday, August 12, = 2002=20 6:58 PM
Subject: Re: [CANSLIM] Which One Is Better - = Updated

Either=20 way, it appears that the IBD data paints a prettier picture of=20 the
stocks.

-Bill

----- Original Message = - -----
From: "Gene=20 Ricci" <genr@swbell.net>
To:=20 <canslim@lists.xmission.com>
Sent: Monday, August 12, 2002 = 4:50=20 PM
Subject: Re: [CANSLIM] Which One Is Better - = Updated


I just=20 had today's update figures for DGO sent to me.
The 3 columns are = 8/9 DGO=20 data
8/12 IBD readings 30 minutes ago
8/12 DGO just received = today's=20 download


Hi Katherine, I hadn't checked today and after = reading=20 your note, I
'thought' I was in error.

However, I just went = and=20 checked several=20 = stocks:
          &n= bsp;    =20 8/9  8/12 =20 = 8/12
           = ;     =20 DGO  IBD  DGO
AAON    =20 85     86     =20 83
AIR         =20 38     55     =20 32
ABCB       = 89    =20 90    =20 90
ABM         = 77   =20 85     =20 75
ABN         = 58   =20 67      =20 58
ACE         = 69   =20 86       =20 71
ACMR     92    =20 95      =20 92
AES        =20 24     30      =20 25
AFCE      72    =20 79      =20 74
AFL        =20 92     95      =20 91


The first ten (10) I checked showed different = numbers.

My=20 question still stands, which one is = better?

Gene



-----=20 Original Message -----
From: Katherine Malm
To:=20 canslim@lists.xmission.com
Sent: Monday, August 12, 2002 5:47=20 PM
Subject: Re: [CANSLIM] Which One Is Better


Hi=20 Gene,

There seems to be conflicting information on this...See = DGO's=20 reply to my
recent inquiry (7/31) about the very same=20 thing:




Hi Katherine,

Thank you for your = recent email=20 to Daily Graphs Online.

I apologize, but the recent additions = to our=20 services have not yet been
reflected in our Image Maps = resource.  We=20 plan on making the update soon.
TO address your question, I would = like to=20 confirm that the Composite
Rating
you see on our service is the = same=20 SmartSelect=AE Composite Rating that is
provided by the Investor's = Business=20 Daily and investors.com.

Please write back if you have any = questions or=20 need assistance.

Best regards,
Dan
Daily Graphs=20 Online
www.dailygraphs.com

----- Original Message = - -----
From:=20 Gene Ricci
To: canslim@lists.xmission.com
Sent: Monday, August = 12, 2002=20 4:06 PM
Subject: [CANSLIM] Which One Is Better


Let's = see, IBD=20 provides an Overall Rating and now DGO provides a Composite
Rating. = Has=20 anyone determined which one is better?

Gene

The new = SmartSelect=AE=20 Composite Rating in Investor's Business Daily and
the Stock Checkup = Overall=20 Rating found on investors.com are based on
different = formulas.

The=20 SmartSelect=AE Composite Rating combines all 5 SmartSelect = Ratings
into one=20 easy-to-use rating.  More weight is placed on EPS and = RS
Rating, and=20 the stock's percent off its 52-week high is also included in
the=20 formula.  Results are then compared to all other companies, and=20 each
company is assigned a rating from 1-99 with 99 being the = best. =20 This
rating is designed to help you get a quick feel for how a=20 company's
SmartSelect=AE Ratings compare to all other stocks in our = database.  This
is intended to be an additional tool to help = you find=20 the stocks with
the highest SmartSelect=AE Ratings, quickly and=20 easily.

The Overall Rating in the Stock Checkup is determined = by a=20 proprietary
formula incorporating all five of the Stock Checkup = ratings.=20 These are
the Technical Rating, Fundamental Rating, Attractiveness = Rating,=20 Group's
Technical Rating and Group's Fundamental Rating.  The = Stock=20 Checkup uses
over 30 different variables including all the = SmartSelect=AE=20 Ratings to
calculate the Overall Rating.  When using the Stock = Checkup, focus not
only on the Overall Rating but all 6 of the = Checkup=20 Ratings.  Also study
how the stock compares to its group = within the=20 individual Checkup
Ratings.



-
-To = subscribe/unsubscribe,=20 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=20 "majordomo@xmission.com"
-In the email body, write "subscribe = canslim"=20 or
-"unsubscribe canslim".  Do not use quotes in your=20 email.





-
-To subscribe/unsubscribe, email=20 "majordomo@xmission.com"
-In the email body, write "subscribe = canslim"=20 or
-"unsubscribe canslim".  Do not use quotes in your=20 email.


-
-To subscribe/unsubscribe, email=20 "majordomo@xmission.com"
-In the email body, write "subscribe = canslim"=20 or
-"unsubscribe canslim".  Do not use quotes in your=20 email.
- ------=_NextPart_000_00C8_01C24319.2185B790-- - - - -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, 13 Aug 2002 20:45:00 -0600 From: "Patrick Wahl" Subject: Re: [CANSLIM] Re:Entry purchase I think a good approximation is to put no more than 20% of your money into a single stock. O'Neil has some guidelines on this depending on your account size, I don't know them off the top of my head, but 20% would mean a max of 5 stocks, and that's pretty close to what he said. Also, a comforting thing to consider is that with no more than 20% of your money in one stock, you are risking only 1.6% or so of your account on one stock if I am doing my math correctly (1/5 of 8% max loss on a stock). So you can't get in too much trouble. If the market is lousy, like now, you may want to scale back below 20%. On 13 Aug 2002 at 21:24, E2moskow@aol.com wrote: > are good parameters to consider when making an entry purchase. How many > shares is it wise to buy. This is a subject that hasn't been discussed, > what is WON's idea as an entry? Morris > - - - -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, 13 Aug 2002 22:46:54 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions This is a multi-part message in MIME format. - ------=_NextPart_000_00D6_01C2431B.5215E5E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Nancy, retail investors don't have the staying power, by themselves, to = keep absorbing stock from sellers. Institutionals do, as they will place = an order at the brokerage house they use to by xxx thousands of shares = at a limit. The brokerage house will sit there on the bid taking it in, = occasionally jumping up and taking out a low offer that still permits = them to meet the limit set by the institutional on an average price per = share basis. The market will see that strength, and reconsider dumping = stock. Another institutional may see that strength on a company they = want, and join in adding more strength to it. But the institutionals, = and the brokerage houses that represent them in the market place, = usually will not go crazy and chase the price up, they will just sit = there and support the bid. If they have done their homework, they have = evaluated the company and already set a price they are willing to pay. - ----- Original Message -----=20 From: NANCY POLCARO=20 To: canslim=20 Sent: Tuesday, August 13, 2002 10:10 PM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions can you explain your statement. Why would it mean this? nancy=20 ----- Original Message ----- From: Tom Worley Sent: Tuesday, August 13, 2002 7:54 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions on the downside, often suggests the point where institutional support exists, but only on the larger more liquid stocks. ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 10:50 AM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions Katherine: Couldn't "churning" also identify a stock which has been weak = (ie. in a downtrend), but then does not make any more headway down-and does this = on heavy volume. Wouldn't this indicate the end of the downtrend (or at least-the beginning of a consolidation, perhaps leading to the stock garnering strength?). Moreover, as distribution (as you pointed out) is likely at the = top (as indicated by the hi volume and stalling); wouldn't accumulation be = likely at the churning point in the downtrend (ie. since the stock is not = falling anymore and it is not doing it on hi volume-wouln't this signify that someone is buying up all the stock that someone else is selling) I bring up this question because I'm not sure of the answer. I = thought WON has said (or perhaps it was in an IBD Investors Corner article) = that "churning" can take place on the upside (to indicate future weakness) = or on the downside (to indicate future strength). In any event, what is your experience or observation or comments = and conclusions on my churning conundrum. jans In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time, kmalm@earthlink.net writes: > Long story short, churning/stalling is in reference to action = *after* a > stock or index has been rising, nears its highs, then starts acting = odd. > That is, large volume is no longer accompanied by significant upward = price > movement. In that sense, it is subtle distribution and is a > sign that the > stock may be topping and/or beginning a consolidating period - -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_00D6_01C2431B.5215E5E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Nancy, retail investors don't have the = staying=20 power, by themselves, to keep absorbing stock from sellers. = Institutionals do,=20 as they will place an order at the brokerage house they use to by xxx = thousands=20 of shares at a limit. The brokerage house will sit there on the bid = taking it=20 in, occasionally jumping up and taking out a low offer that still = permits them=20 to meet the limit set by the institutional on an average price per share = basis.=20 The market will see that strength, and reconsider dumping stock. Another = institutional may see that strength on a company they want, and join in = adding=20 more strength to it. But the institutionals, and the brokerage houses = that=20 represent them in the market place, usually will not go crazy and chase = the=20 price up, they will just sit there and support the bid. If they have = done their=20 homework, they have evaluated the company and already set a price they = are=20 willing to pay.
 
----- Original Message -----=20
From: NANCY = POLCARO
To: canslim
Sent: Tuesday, August 13, 2002 10:10 PM
Subject: Re: [CANSLIM] cup-without-handle; "tightness"=20 questions

can you explain your statement.  Why would it mean this?=20 nancy 
 
----- Original Message -----
From:=20 Tom Worley
Sent: Tuesday, August 13, 2002 = 7:54=20 AM
To: canslim@lists.xmission.com=
Subject: Re: [CANSLIM]=20 cup-without-handle; "tightness" questions
 
on the downside, often suggests the point where = institutional=20 support
exists, but only on the larger more liquid = stocks.

-----=20 Original Message -----
From: <Spencer48@aol.com>
To:=20 <canslim@lists.xmission.com>
Sent: Tuesday, August 13, 2002 = 10:50=20 AM
Subject: Re: [CANSLIM] cup-without-handle; "tightness"=20 questions


Katherine:

     = Couldn't=20 "churning" also identify a stock which has been weak (ie. in = a
downtrend),=20 but then does not make any more headway down-and does this on
heavy = volume.  Wouldn't this indicate the end of the downtrend (or=20 at
least-the beginning of a consolidation, perhaps leading to the=20 stock
garnering strength?).

     = Moreover, as=20 distribution (as you pointed out) is likely at the top = (as
indicated by the=20 hi volume and stalling); wouldn't accumulation be likely at
the = churning=20 point in the downtrend (ie. since the stock is not falling
anymore = and it=20 is not doing it on hi volume-wouln't this signify that
someone is = buying up=20 all the stock that someone else is = selling)

     I=20 bring up this question because I'm not sure of the answer.  I=20 thought
WON has said (or perhaps it was in an IBD Investors Corner = article)=20 that
"churning" can take place on the upside (to indicate future = weakness)=20 or on
the downside (to indicate future=20 strength).

     In any event, what is your=20 experience or observation or comments and
conclusions on my = churning=20 = conundrum.


        &nb= sp;           &nbs= p;     =20 jans


In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern = Standard Time,
kmalm@earthlink.net writes:

> Long story = short,=20 churning/stalling is in reference to action *after* a
> stock or = index=20 has been rising, nears its highs, then starts acting odd.
> That = is,=20 large volume is no longer accompanied by significant upward = price
>=20 movement. In that sense, it is subtle distribution and is a
> = sign that=20 the
> stock may be topping and/or beginning a consolidating=20 period



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