From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3368 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, June 11 2003 Volume 02 : Number 3368 In this issue: Re: [CANSLIM] Exchange Traded Stocks Re: [CANSLIM] Exchange Traded Stocks [CANSLIM] More about ELON RE: Re: [CANSLIM] breakouts to come RE: [CANSLIM] More about ELON Psychological part of investing (was Re: [CANSLIM] Distribution Day) ---------------------------------------------------------------------- Date: Wed, 11 Jun 2003 10:06:00 -0700 (PDT) From: Fanus Subject: Re: [CANSLIM] Exchange Traded Stocks Charley In your opinion, what is the advantage in following selected ETF's in your approach over keeping track of industry groups? Aren't you concerned that you might miss strong industry groups because there aren't ETF's for them available and as such not on your list? Best Regards - - Fanus - --- Chazmoore@aol.com wrote: > Here is a tip that may be of use to someone. > > CANSLIMERs know the importance of keeping up with > the rotation of industry > groups. It reminds me of a boiling pot of water. The > molecules on the bottom get > hot, move to the top, burst into steam, and the cool > residual falls back to > the bottom to start the process all over again. It > seems to mean industry > groups behave similarly about every 90 days. > > Exchange trade mutual funds have been created to > reflect many of the major > industry segments. For example, the QQQ represent > 100 of the largest technology > companies. There are also funds that mirror the > Russell 2000. What I have done > is set up a "virtual" portfolio of Exchange Traded > mutual funds so I can > follow their daily price movement. I believe this > will give me concrete evidence > of the popularity of the groups I selected. > > You can set up a portfolio of your own by going to > www.Island.com and > reviewing the selection available. > > Charley > __________________________________ Do you Yahoo!? Yahoo! Calendar - Free online calendar with sync to Outlook(TM). http://calendar.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, 11 Jun 2003 16:17:40 EDT From: Chazmoore@aol.com Subject: Re: [CANSLIM] Exchange Traded Stocks - --part1_1a9.15f2fc07.2c18e864_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi Fanus: Your point is well taken. There is not an exchange traded stock for every industry, but here is an example. IBB is a fund of 20 large companies in the biotech industry. On April 12 it closed at $60.02. Today it closed at $73.77, and increase of about 23% in about a month. This week IBD rates Medical Biomed/biotech as the number 2 industry. Next week it may move to first place or it may start dropping. My virtual portfolio will tell me at a glance, and because it is expressed in dollars, I have some sort of qualitative measure. Perhaps its only value is to remind me to constantly check industry rotation. Charley - --part1_1a9.15f2fc07.2c18e864_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable Hi Fanus: Your point is w= ell taken. There is not an exchange traded stock for every industry, but her= e is an example. IBB is a fund of 20 large companies in the biotech industry= . On April 12 it closed at $60.02. Today it closed at $73.77, and increase o= f about 23% in about a month. This week IBD rates Medical Biomed/biotech as=20= the number 2 industry. Next week it may move to first place or it may start=20= dropping. My virtual portfolio will tell me at a glance, and because it is e= xpressed in dollars, I have some sort of qualitative measure.
Perhaps its only value is to remind me to constantly check industry rota= tion.

Charley - --part1_1a9.15f2fc07.2c18e864_boundary-- - - - -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, 11 Jun 2003 14:06:13 -0700 From: "Harold Josephson" Subject: [CANSLIM] More about ELON This is a multi-part message in MIME format. - ------=_NextPart_000_00EC_01C33022.A1A5E110 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: quoted-printable Hi Katherine, =20 I have a question re a remark you made recently about ELON. You said . = . . =20 "So, all in all, I'd look at the quality of ELON's current base, then = look at the preponderance of evidence fundamentally, then look at the = industry to see how the group is behaving overall, and then check to be sure ELON is = the best the group and/or the market has to offer." =20 What would you advise if ELON is, say, only the 4th best stock in its = group (I use IBD for this ranking) but is the only one breaking out? Would = you wait for a higher ranked stock to breakout, go forward with your buy or = pass for now? =20 Thanks =20 Harold =20 =20 =20 =20 =20 =20 =20 =20 - ------=_NextPart_000_00EC_01C33022.A1A5E110 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable

Hi Katherine,

I have a question re a remark you made recently about ELON. = You said . . .

"So, all in all, I'd look at = the quality of ELON's current base, then look at the preponderance of = evidence fundamentally, then look at the industry to see how the group is = behaving overall, and then check to be sure ELON is the best the group and/or the = market has to offer."

What would you advise if ELON is, = say, only the 4th best stock in = its group (I use IBD for this ranking) but is the only one breaking = out? Would you wait for a higher ranked stock to breakout, go forward with your buy = or pass for now?

Thanks

Harold

- ------=_NextPart_000_00EC_01C33022.A1A5E110-- - - - -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, 11 Jun 2003 14:35:23 -0700 From: "Harold Josephson" Subject: RE: Re: [CANSLIM] breakouts to come This is a multi-part message in MIME format. - ------=_NextPart_000_00F1_01C33026.B17940B0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Where does one find the "daily updated stocks" on the IBD website (I'm a subscriber)? Harold Josephson Tel: 323.850.1333 Fax: 323.512.8968 hj@hjosephson.com - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Rolf Hertenstein Sent: Monday, June 02, 2003 10:39 AM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Hi Bill - Are you referring to IBD's Screen of the Day? I think in a recent discussion of the market, IBD mentioned that further breakouts at this stage of this bull run (however long it'll be) are more likely to be 'second rate'. The real leaders have broken out and already have good gains. This won't stop me from looking of course. Rolf For list creation, I'd also do a quick scan of the daily updated stocks featured on the IBD site for possible setup/entry points. - -- Bill - ----------------------------------------------------------------- I was just going through the charts of IBD100 last night, and was thinking the exact same thing. Are there any other lists of high quality CANSLIM stocks that should be scanned to check for proper price patterns? Chris ----- Original Message ----- From: Ann Hollingworth To: CANSLIM Listserv Sent: Monday, June 02, 2003 4:28 AM Subject: [CANSLIM] breakouts to come It seems to me, as I hunt through WR and IBD100, that there are a lot of overextended stocks, and not to many on the right side of their cup or ready to break out. It would seem to me that there could be two reasons for this: 1. The rally is going to wane. 2. The WR and IBD100 do not produce stocks at this state of their development. Any comments?? Ann - ------=_NextPart_000_00F1_01C33026.B17940B0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable

Where = does one find the “daily updated stocks” on the IBD website = (I’m a subscriber)?

Harold Josephson
Tel: 323.850.1333
Fax: 323.512.8968
hj@hjosephson.com

-----Original = Message-----
From: owner-canslim@lists.xmissio= n.com = [mailto:owner-canslim@lists.xmissio= n.com] On Behalf Of Rolf Hertenstein
Sent: Monday, June 02, = 2003 10:39 AM
To: = canslim@lists.xmission.com
Subject: Re: Re: = [CANSLIM] breakouts to come

Hi Bill - Are you referring to IBD's Screen of the Day?

I think in a recent = discussion of the market, IBD mentioned that further breakouts at this stage of this = bull run (however long it'll be) are more likely to be 'second rate'. The = real leaders have broken out and already have good gains. This won't = stop me from looking of course.

Rolf

=

For list creation, I'd also do a quick scan of the daily updated stocks = featured on the IBD site for possible setup/entry points.

- --
Bill

- -----------------------------------------------------------------
I was just going through the charts of IBD100 last night, and was = thinking
the exact same thing. Are there any other lists of high quality = CANSLIM
stocks that should be scanned to check for proper price patterns?

Chris
----- Original Message -----
From: Ann Hollingworth
To: CANSLIM Listserv
Sent: Monday, June 02, 2003 4:28 AM
Subject: [CANSLIM] breakouts to come

It seems to me, as I hunt through WR and IBD100, that there are a = lot of
overextended stocks, and not to many on the right side of their cup = or
ready to break out.

It would seem to me that there could be two reasons for this:

1. The rally is going to wane.

2. The WR and IBD100 do not produce stocks at this state of = their
development.

Any comments??

Ann

- ------=_NextPart_000_00F1_01C33026.B17940B0-- - - - -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, 11 Jun 2003 18:36:34 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] More about ELON This is a multi-part message in MIME format. - ------=_NextPart_000_004E_01C33048.62B47CC0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Hi Harold, I don't remember the specific context of the ELON comments, so will answer more generically: (1) Rank in industry is helpful in accessing whether a stock is currently a leader or laggard, but that is only one of many considerations when choosing a stock for purchase. (2) Rank in industry can be based on many things, either separately or in tandem. Even the IBD ranks the stocks within the industry based on several different factors, all independently presented. So, for example, the stock might be first fundamentally, 10th ranked by RSRank, 17th based on overall technical condition, and 9th based on some combination of factors. By the way, IBD composite scores do not weight all factors equally and they do not reveal what percentage weight they place on each of those factors in order to derive the score. I prefer instead to look separately at technicals, fundamentals, RSRank and general "health" of other stocks in the industry to determine leader/laggard status of any one stock. For example, a stock might be first fundamentally, but that doesn't mean squat if the stock is in lousy technical shape. I don't want that high fundamental score cranking up the composite ranking of the stock for purposes of ranking it within the industry itself. (3) All ranking systems force order a list of stocks, and therefore can be highly volatile. Today something might be 14th, tomorrow it might be first. Here's an example: Let's say today that stock A has an RSRank of 97. Let's say there are 12 other stocks in the industry with RSRank = 98. That means it ranks 13th in the industry simply because it's one lousy RSRank notch below the others. All in all, that rank doesn't tell me very much. Is it a "strong" stock? Yes. By virtue of the forced ordering, however, it is labeled a "slacker" in the industry. If tomorrow its RSRank jumps to 99 while the other 13 stocks stay at 98, guess what? It shoots from 14th to 1st in a heartbeat. (4) Along the same lines, when a stock sets up, it could very easily have an RSRank of 70 or 71, but within one or two days *after* breaking out, the RSRank can shoot up to 80 in a heartbeat. If one were looking at a rank in industry based on this particular ordering and say, pass something up because it is ranked 6th or 7th, they will be surprised as all get out when a couple of days later, the stock is now ranked 1st or 2nd in the industry. The same sort of phenomenon would hold true for any factor which changes rapidly. The change in scoring or ranking will move the stock up or down within the industry very quickly. (5) Timing is *everything* when it comes to selecting stocks. I would never hold off on purchasing a good stock that has a low risk entry, a solid setup, has a competitive advantage, shows leadership qualities, is showing outperformance to the market and meets all my personal requirements in favor of waiting for something else that may or may not set up and offer a good buying opportunity. This is particularly true early in a rally. The sooner you can get on board with high quality stocks with low risk entries while the rally is still young, the greater the likelihood you can ride these first movers for substantial gains. Wait around for another stock (all else being equal) and you spend too much time in cash when the opportunities present themselves. That said, I would never jump on board a stock that doesn't meet my personal criteria simply because it is an early mover. Bottom line, I think a rank in industry is a helpful guide in determining if there might be better stocks available, but I would never make a go/no go decision based on that factor in and of itself. My impression is that WON has always pressed this point more from the point of view of evaluating the true leadership qualities of the business itself. Rank in industry and/or industry rank are guideposts, but they tell very little about the technical strength, competitive characterisitcs and.or fundamental track record of the stock itself. Those things I think are far more important in determining "leadership." Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Harold Josephson Sent: Wednesday, June 11, 2003 3:06 PM To: canslim@lists.xmission.com Subject: [CANSLIM] More about ELON Hi Katherine, I have a question re a remark you made recently about ELON. You said . . . "So, all in all, I'd look at the quality of ELON's current base, then look at the preponderance of evidence fundamentally, then look at the industry to see how the group is behaving overall, and then check to be sure ELON is the best the group and/or the market has to offer." What would you advise if ELON is, say, only the 4th best stock in its group (I use IBD for this ranking) but is the only one breaking out? Would you wait for a higher ranked stock to breakout, go forward with your buy or pass for now? Thanks Harold - ------=_NextPart_000_004E_01C33048.62B47CC0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable

Hi Harold,

I don't remember the specific = context of the=20 ELON comments, so will answer more generically:

(1) Rank in industry is helpful in = accessing=20 whether a stock is currently a leader or laggard, but that is only one = of many=20 considerations when choosing a stock for purchase.

(2) Rank in industry can be based = on many=20 things, either separately or in tandem. Even the IBD ranks the stocks = within the=20 industry based on several different factors, all independently = presented. So,=20 for example, the stock might be first fundamentally, 10th ranked by = RSRank, 17th=20 based on overall technical condition, and 9th based on some combination = of=20 factors. By the way, IBD composite scores do not weight all factors = equally and=20 they do not reveal what percentage weight they place on = each of=20 those factors in order to derive the score. I prefer instead to look = separately=20 at technicals, fundamentals, RSRank and general "health" of other stocks = in the=20 industry to determine leader/laggard status of any one stock. For = example, a=20 stock might be first fundamentally, but that doesn't mean squat if the = stock is=20 in lousy technical shape. I don't want that high fundamental score = cranking up=20 the composite ranking of the stock for purposes of ranking it within the = industry itself.

(3) All ranking systems force = order a list=20 of stocks, and therefore can be highly volatile. Today something might = be 14th,=20 tomorrow it might be first. Here's an example: Let's say today that = stock A has=20 an RSRank of 97. Let's say there are 12 other stocks in the industry = with RSRank=20 =3D 98. That means it ranks 13th in the industry simply because it's one = lousy=20 RSRank notch below the others. All in all, that rank doesn't tell me = very much.=20 Is it a "strong" stock? Yes. By virtue of the forced ordering, however, = it is=20 labeled a "slacker" in the industry. If tomorrow its RSRank jumps to 99 = while=20 the other 13 stocks stay at 98, guess what? It shoots from 14th to 1st = in a=20 heartbeat.

(4) Along the same lines, when a = stock sets=20 up, it could very easily have an RSRank of 70 or 71, but within one = or two=20 days *after* breaking out, the RSRank can shoot up to 80 in a heartbeat. = If one=20 were looking at a rank in industry based on this particular ordering and = say,=20 pass something up because it is ranked 6th or 7th, they will be = surprised as all=20 get out when a couple of days later, the stock is now ranked 1st or 2nd = in the=20 industry. The same sort of phenomenon would hold true for any factor = which=20 changes rapidly. The change in scoring or ranking will move the stock up = or down=20 within the industry very quickly.

(5) Timing is *everything* when it = comes to=20 selecting stocks. I would never hold off on purchasing a good stock that = has a=20 low risk entry, a solid setup, has a competitive advantage, shows = leadership=20 qualities, is showing outperformance to the market and meets all my = personal=20 requirements in favor of waiting for something else that may or may not = set up=20 and offer a good buying opportunity. This is particularly true = early in a=20 rally. The sooner you can get on board with high quality stocks with low = risk=20 entries while the rally is still young, the greater the likelihood you = can ride=20 these first movers for substantial gains. Wait around for another stock = (all=20 else being equal) and you spend too much time in cash when the = opportunities=20 present themselves. That said, I would never jump on board a stock that = doesn't=20 meet my personal criteria simply because it is an early = mover.

Bottom line, I think a rank in = industry is a=20 helpful guide in determining if there might be better stocks available, = but I=20 would never make a go/no go decision based on that factor in and of = itself. My=20 impression is that WON has always pressed this point more from the point = of view=20 of evaluating the true leadership qualities of the business itself. Rank = in=20 industry and/or industry rank are guideposts, but they tell very little = about=20 the technical strength, competitive characterisitcs and.or fundamental = track=20 record of the stock itself. Those things I think are far more important = in=20 determining "leadership."

Katherine

-----Original = Message-----
From:=20 owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On=20 Behalf Of Harold Josephson
Sent: Wednesday, June 11, 2003 = 3:06=20 PM
To: canslim@lists.xmission.com
Subject: [CANSLIM] = More=20 about ELON

Hi Katherine,

I have a question re a remark you made = recently about=20 ELON. You said . . .

"So, = all in=20 all, I'd look at the quality of ELON's current base, then look at the=20 preponderance of evidence fundamentally, then look at the industry to = see how=20 the group is behaving overall, and then check to be sure ELON is the = best the=20 group and/or the market has to offer."

What = would you=20 advise if ELON is, say, = only the 4th=20 best stock in its group (I use IBD for this ranking) but is the only = one=20 breaking out? Would you wait for a higher ranked stock to = breakout, go=20 forward with your buy or pass for now?

Thanks

Harold

- ------=_NextPart_000_004E_01C33048.62B47CC0-- - - - -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, 11 Jun 2003 18:18:22 -0700 From: Ian Subject: Psychological part of investing (was Re: [CANSLIM] Distribution Day) Tomas: An exceptional book that deals with the psychological aspect of trading is "The Disciplined Trader" by Mark Douglas. Perhaps they have it at your local library - that where I found it. Cheers, Ian - ----- Original Message ----- From: "Tomas" To: Sent: Monday, June 09, 2003 8:03 PM Subject: RE: [CANSLIM] Distribution Day > Ed, > > Thanks for the info. I definitely keep an eye out for > your market analysis. As for the psychological part > of investing, any advice would be appreciated. This > is the toughest part. Sometimes, it seems like you > lose (feel bad) even when you win (made a profit, but > realized you sold to early and stock is still going > up). > > > Regards, > tomas > > --- "Edward W. Gjertsen II" wrote: > > There is a we. We are an SEC registered Investment > > Advisor and > > Broker/Dealer. Our firm started in 1986 and is > > located in Glenview > > Illinois (about 20 minutes North of Chicago.) There > > are two principles, > > Steve Mack and myself. We have a staff of 4 and 10 > > brokers in the state > > of Illinois. We service approximately 800 clients > > and advise on $125 > > million worth of assets. > > > > I have moved away from getting too specific on > > individual stocks and try > > to keep my opinions to the general market and the > > psychological battles > > we all face as investors. I have found this to be > > one of the most > > intelligent and vibrant "virtual" brain trusts out > > there. You are > > fortunate to have found this group. > > > > Ed Gjertsen II > > ed@macktracks.com > > > > > > Confidentiality Notice: This e-mail message, > > including any attachments, > > is for the sole use of the intended recipient(s) and > > may contain > > confidential and privileged information. Any > > unauthorized review, use, > > disclosure or distribution is prohibited. If you > > are not the intended > > recipient, please contact the sender by reply e-mail > > and destroy all > > copies of the original message. > > > > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com] On Behalf > > Of Tomas > > Sent: Saturday, June 07, 2003 4:54 PM > > To: canslim canslim > > Subject: Re: [CANSLIM] Distribution Day > > > > Ed, > > > > I noticed that you always say "we". It sounds like > > you are involved with some kind of group > > investments. > > I went to www.macktrackes.com and really did not get > > too much information. If you do not mind, can you > > tell me a little about the "we"? > > > > I am new. > > > > Regards, > > tomas > > > > --- "Edward W. Gjertsen II" > > wrote: > > > We briefly touched 20%+ return for the year early > > > this morning. Given > > > today's action, it may be awhile before we see > > that > > > number again. While > > > the weekly charts will look like an accumulation > > > week, today's action > > > was very poor. Our view is as Microsoft goes, so > > > goes the market. > > > Because Microsoft is such a major element in all > > > market indices (DJIA, > > > SPX, NASDAQ), its performance has a profound > > effect. > > > It just completed > > > what we think is a reverse cup-and-handle - pretty > > > bearish pattern. It > > > rallied to its 50DMA this morning then collapsed. > > > > > > > > We were up 2.5% earlier in the day and wound up > > > losing 0.18%. We joked > > > in the morning to "liquidate" the portfolio and > > walk > > > with the gain, I > > > hate humor. Be very guarded over the next couple > > of > > > days. Do not let > > > the market take you out of strong positions. Each > > > of your positions > > > should stand on their own. We may see some bases > > > forming in here which > > > will present opportunities for purchasing 2nd or > > 3rd > > > stage bases. > > > > > > I hope you all have a great weekend. Over the > > next > > > couple of days, say > > > "Hi" to Tom in your own way. He would have > > enjoyed > > > this move. I miss > > > his humor, insights and VR Fund. > > > > > > Take care all. > > > > > > Ed Gjertsen II > > > ed@macktracks.com > > > > > > > > > Confidentiality Notice: This e-mail message, > > > including any attachments, > > > is for the sole use of the intended recipient(s) > > and > > > may contain > > > confidential and privileged information. Any > > > unauthorized review, use, > > > disclosure or distribution is prohibited. If you > > > are not the intended > > > recipient, please contact the sender by reply > > e-mail > > > and destroy all > > > copies of the original message. > > > > > > > > > > > > - > > > -To subscribe/unsubscribe, email > > > "majordomo@xmission.com" > > > -In the email body, write "subscribe canslim" or > > > -"unsubscribe canslim". Do not use quotes in your > > email. > > > > > > __________________________________ > > Do you Yahoo!? > > Yahoo! Calendar - Free online calendar with sync to > > Outlook(TM). > > http://calendar.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. > > > > > > - > > -To subscribe/unsubscribe, email > > "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your > email. > > > __________________________________ > Do you Yahoo!? > Yahoo! Calendar - Free online calendar with sync to Outlook(TM). > http://calendar.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. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #3368 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.