From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3063 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 Friday, November 29 2002 Volume 02 : Number 3063 In this issue: RE: [CANSLIM] Volume and CWH (was M) ---------------------------------------------------------------------- Date: Fri, 29 Nov 2002 11:43:13 -0600 From: "Curt Corley" Subject: RE: [CANSLIM] Volume and CWH (was M) This is a multi-part message in MIME format. - ------=_NextPart_000_0006_01C2979C.80FA87F0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Correction the TTM time frame was 11/28/2001 through 11/27/2002. I typed in today=92s date for the end date instead of the correct date. =20 Curt =20 - -----Original Message----- From: Curt Corley [mailto:cjcorley@hiwaay.net]=20 Sent: Friday, November 29, 2002 11:40 AM To: 'canslim@lists.xmission.com' Subject: RE: [CANSLIM] Volume and CWH (was M) =20 Bill, =20 You can download the free trial version and run it with the 2002 data. The trailing twelve month performance (from 11/28/2001 through 11/29/2002) is -15.9 %. The buy-and-hold performance for that same time frame is -23.1 %. =20 Curt =20 =20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Bill King Sent: Tuesday, November 26, 2002 12:53 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Volume and CWH (was M) =20 Hi Katherine, =20 Once again, thanks for the useful info/links. I was impressed with the Market-tester. It looks like a useful tool. He didn=92t show any = examples of 2002. Did he predict the FTD and recommend reentering the market? Does his software need a real-time data feed? =20 Bill King =20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, November 26, 2002 9:46 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Volume and CWH (was M) =20 Hi Curt, =20 I'm of a mind that simple is better when it comes to reading charts, and as with most things it just takes practice to become proficient, just as you suggested. I still "practice" every day. One of the things I like so much about the CANSLIM list is that people will often bring up stocks that I personally have glossed over, but I use their mention of a stock to practice reading the chart more closely. As chart reading is such a visual process, I think anything that helps interpret the price/volume action is helpful. I'm fairly purist, and stick to the simplest of indicators, but I find that the pattern of the Up/Down volume helps summarize the recent action. As this is a simple ratio of volume on up days to volume on down days over the last 50 days, it's not a perfect indicator, but it helps "see" the P/V action a little differently. =20 I've used the IWM ETF as a proxy for the Russell 2000 so that you can see what I mean. See it at: http://Wallstreet-LLC.com/canslim/IWM112202.JPG =20 Another tool I use extensively and that I like very much is Bill Lee's Excel spreadsheet. It's designed to help you read the market, but can also be used to "read" any individual stock. Each accumulation and distribution day is marked with a color and is *very* easy to see patterns of accumulation and distribution (yellow/orange/red for distribution, green for accumulation). See the last year of the NASDAQ and you can see what I mean....plenty of red most of the year, but plenty of green while the Naz built the right side of the cup. See a sample at: http://Wallstreet-LLC.com/canslim/NASDAQ112202.JPG. Bill's product is a moderately priced shareware program and I have no business affiliation with him....just a happy customer. Read more about his tool at http://www.market-tester.com =20 Katherine =20 =20 - ----- Original Message -----=20 =20 From: Curt Corley =20 To: canslim@lists.xmission.com=20 Sent: Friday, November 22, 2002 8:30 PM Subject: [CANSLIM] Volume and CWH (was M) =20 Katherine, =20 Thanks for your input. Your help is invaluable. I looked at the indices in TC2000 with MoneyStream and Time Segmented Volume. I looked at the NASDAQ, S&P-500, and Russell 2000. Here=92s what I found on all = 3 charts. =20 CMS: MoneyStream stayed above it=92s linear regression line on the left side = of the cup, on the right side of the cup, and during the BO. However, it stayed below the linear regression line along the bottom of the cup and during the handle formation. =20 TSV: TSV stayed mainly above the center line during the left-side of the cup. Toward the bottom of the cup, TSV plunged way below the zero line. On the right side of the cup, TSV shot high above the center line again. During the handle formation and the BO, TSV dipped down and back up again. =20 I guess this is supposed to tell me that volume supported the price action because there were no divergences. Since you mentioned Accumulation/Distribution, I probably should have looked at On Balance Volume and/or Balance of Power. However, I haven=92t had much success with those indicators in the past. =20 I=92m trying to become more proficient at chart reading, and you=92re certainly helping a great deal along with other members of this list. Once again, thank you very much. =20 Cheers, Curt =20 =20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm Sent: Thursday, November 21, 2002 10:58 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] M =20 Hi Curt, =20 I don't think when you're looking at patterns on major indexes such as the NASDAQ that the pattern of volume would be used in the same way that it is on an individual stock. My take on it is simply that an index represents a huge number of individual stocks, and while the general price pattern will indicate a reversal of a trend or a general shift in psychology and pattern of buying and selling in the market, the volume doesn't really tell you the same story as it does in an individual stock. In other words, I think that it's more important to look for a pattern of accumulation outpacing distribution (up days on higher volume than the previous day vs. down days on higher volume), than it is to look for the "bathtub" volume pattern that one would use on an individual stock. =20 Katherine - ----- Original Message -----=20 From: Curt Corley =20 To: canslim@lists.xmission.com=20 Sent: Thursday, November 21, 2002 6:27 PM Subject: RE: [CANSLIM] M =20 I=92m glad you mentioned the General Markets & Sectors commentary in today=92s IBD. I looked at the charts, and they did not appear to have rising volume on the sides of the cups. As a matter of fact, the heaviest volume days were at the very bottom of the cup. I don=92t = think the indices have shown great cwh characteristics. However, I=92m a = novice at this stuff, so I would appreciate any criticism or validation of my view. =20 =20 Curt =20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Kelly Short Sent: Thursday, November 21, 2002 3:11 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] M =20 Speaking of handles- what are peoples' thoughts on WON's comment from this morning about the NASDAQ forming a cup and handle? Volume in the handle seems a bit "imperfect" but I don't want to be the one to rain on the parade! =20 _____ =20 - ------=_NextPart_000_0006_01C2979C.80FA87F0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Correction the TTM time frame was = 11/28/2001= through 11/27/2002.=A0 I typed in today’s date for = the end date instead of the correct date.

 

Curt

 

-----Original = Message-----
From: Curt Corley [mailto:cjcorley@hiwaay.net]
Sent: Friday, November = 29, 2002 11:40 AM
To: = 'canslim@lists.xmission.com'
Subject: RE: [CANSLIM] = Volume and CWH (was M)

 

Bill,<= /span>

 =

You can download = the free trial version and run it with the 2002 data.=A0 The trailing twelve month performance (from 11/28/2001 through 11/29/2002) is -15.9 %.=A0 The = buy-and-hold performance for that same time frame is -23.1 = %.

 =

Curt=A0=A0

 =

-----Original = Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Bill King
Sent: Tuesday, November = 26, 2002 12:53 PM
To: = canslim@lists.xmission.com
Subject: RE: [CANSLIM] = Volume and CWH (was M)

 

Hi Katherine,

 

Once again, thanks for the useful info/links. I was = impressed=A0 with the Market-tester. It looks = like a useful tool. He didn’t show any examples of 2002. Did he predict = the FTD and recommend reentering the market? Does his software need a real-time = data feed?

 

Bill King

 

-----Original Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Tuesday, November = 26, 2002 9:46 AM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = Volume and CWH (was M)

 

Hi = Curt,

 

I'm of a mind that simple is better when it comes to reading charts, and as with most = things it just takes practice to become proficient, just as you suggested. I = still "practice" every day. One of the things I like so much about = the CANSLIM list is that people will often bring up stocks that I personally = have glossed over, but I use their mention of a stock to practice reading the = chart more closely. As chart reading is such a visual process, I think = anything that helps interpret the price/volume action is helpful. I'm fairly purist, = and stick to the simplest of indicators, but I find that the pattern of the = Up/Down volume helps summarize the recent action. As this is a simple ratio of = volume on up days to volume on down days over the last 50 days, it's not a = perfect indicator, but it helps "see" the P/V action a little = differently.

 

I've used the IWM ETF as a proxy for the Russell 2000 so that you can see what I mean. = See it at:

http://Wallstree= t-LLC.com/canslim/IWM112202.JPG

 

Another tool I use extensively and that I like very much is Bill Lee's Excel = spreadsheet. It's designed to help you read the market, but can also be used to "read" any individual stock. Each accumulation and = distribution day is marked with a color and is *very* easy to see patterns of = accumulation and distribution (yellow/orange/red for distribution, green for = accumulation). See the last year of the NASDAQ and you can see what I mean....plenty of red = most of the year, but plenty of green while the Naz built the right side of = the cup. See a sample at:

http://Wallst= reet-LLC.com/canslim/NASDAQ112202.JPG. Bill's product is a moderately priced shareware program and I have no = business affiliation with him....just a happy customer. Read more about his tool = at http://www.market-tester.com

 

Katherine=

 

 

----- Original Message -----

 

From: Curt = Corley

To: canslim@lists.xmission.com

Sent: Friday, = November 22, 2002 8:30 PM

Subject: [CANSLIM] Volume and CWH (was M)

 

Katherine,

 =

Thanks for your input.=A0 Your help is invaluable.=A0 I looked at the = indices in TC2000 with MoneyStream and Time Segmented Volume.=A0 I looked at the NASDAQ, = S&P-500, and Russell 2000.=A0 Here’s = what I found on all 3 charts.

 =

CMS:

MoneyStream stayed above it’s linear regression line on the left side of the = cup, on the right side of the cup, and during the BO.=A0 However, it stayed below the linear regression line along the = bottom of the cup and during the handle formation.

 =

TSV:

TSV stayed mainly above the center line during the left-side of the = cup.=A0 Toward the bottom of the cup, TSV = plunged way below the zero line.=A0 On the = right side of the cup, TSV shot high above the center line again.=A0 During the handle formation and = the BO, TSV dipped down and back up again.

 =

I guess this is supposed to tell me that volume supported the price action = because there were no divergences.=A0 = Since you mentioned Accumulation/Distribution, I probably should have looked at On Balance Volume and/or Balance of Power.=A0 However, I haven’t had much success with those indicators = in the past.

 =

I’m trying to become more proficient at chart reading, and you’re = certainly helping a great deal along with other members of this list.=A0 Once again, thank you very = much.

 =

Cheers,

Curt

 =

 =

-----Original Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm
Sent: Thursday, November = 21, 2002 10:58 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = M

 

Hi = Curt,

 

I = don't think when you're looking at patterns on major indexes such as the NASDAQ that = the pattern of volume would be used in the same way that it is on an = individual stock. My take on it is simply that an index represents a huge number of = individual stocks, and while the general price pattern will indicate a reversal of = a trend or a general shift in psychology and pattern of buying and selling in = the market, the volume doesn't really tell you the same story as it does in = an individual stock. In other words, I think that it's more important to = look for a pattern of accumulation outpacing distribution (up days on higher = volume than the previous day vs. down days on higher volume), than it is to look for = the "bathtub" volume pattern that one would use on an individual = stock.

 

Katherine=

----- Original Message -----

To: canslim@lists.xmission.com

Sent: Thursday, = November 21, 2002 6:27 PM

Subject: RE: [CANSLIM] M

 

I’m glad you mentioned the General Markets & Sectors commentary in today’s IBD.=A0 I looked = at the charts, and they did not appear to have rising volume on the sides of = the cups.=A0 As a matter of fact, = the heaviest volume days were at the very bottom of the cup.=A0 I don’t think the indices have shown great cwh characteristics.=A0 However, = I’m a novice at this stuff, so I would appreciate any criticism or validation = of my view.=A0 =

 =

Curt

 =

-----Original Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Kelly Short
Sent: Thursday, November = 21, 2002 3:11 PM
To: = canslim@lists.xmission.com
Subject: RE: [CANSLIM] = M

 

Speaking of handles- what are peoples' thoughts on WON's comment from this = morning about the NASDAQ forming a cup and handle? Volume in the handle seems a bit "imperfect" but I don't want to be the one to rain on the = parade!

 

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