From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3415 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Sunday, July 13 2003 Volume 02 : Number 3415 In this issue: Re: [CANSLIM] views on WEBX Re: [CANSLIM] Break outs or pullbacks [CANSLIM] AAII letter to the editor RE: [CANSLIM] AAII letter to the editor Re: [CANSLIM] AAII letter to the editor Re: [CANSLIM] views on WEBX Re: [CANSLIM] AAII letter to the editor Re: [CANSLIM] AAII letter to the editor RE: [CANSLIM] AAII letter to the editor Re: [CANSLIM] AAII letter to the editor Re: [CANSLIM] views on WEBX RE: [CANSLIM] AAII letter to the editor ---------------------------------------------------------------------- Date: Sun, 13 Jul 2003 11:39:12 EDT From: Spencer48@aol.com Subject: Re: [CANSLIM] views on WEBX Tomas: I just have one comment: Funds are kinda high, in my opinion, at 47%. jans In a message dated 7/11/2003 1:53:52 AM Eastern Daylight Time, tomas986@yahoo.com writes: << Like you said, the fundies look very strong. They do have a great product. My company recently started using WebEX, and it is a great product. >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 15:21:12 -0500 From: "Gene Ricci" Subject: Re: [CANSLIM] Break outs or pullbacks This is a multi-part message in MIME format. - ------=_NextPart_000_00D6_01C34952.64F660C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Dave, notice his next to last paragraph... buying strong stocks on = pullbacks. http://www.highgrowthstock.com/WeeklyReports/rpt/20030712.pdf Gene ----- Original Message -----=20 From: Davellil5@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Friday, July 11, 2003 1:59 PM Subject: Re: [CANSLIM] Break outs or pullbacks Gene, me too! I thought I invented it. Became aware of the possible advantage of buying on corrections = instead of=20 breakouts in this bear market rally (or whatever it is) late last = year. Studied=20 it during the Winter of this year and then did it via a "virtual" = portfolio=20 during April, May and June. Began doing it for the marbles in June. =20 - ------=_NextPart_000_00D6_01C34952.64F660C0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Dave, notice his next to last = paragraph...=20 buying strong stocks on pullbacks.

ht= tp://www.highgrowthstock.com/WeeklyReports/rpt/20030712.pdf

Gene

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

From:=20 Davellil5@aol.com

To: canslim@lists.xmission.com=

Sent: Friday, July 11, 2003 = 1:59 PM

Subject: Re: [CANSLIM] Break = outs or=20 pullbacks

Gene, me too! I thought I invented = it.

Became=20 aware of the possible advantage of buying on corrections instead of=20
breakouts in this bear market rally (or whatever it is) late last = year.=20 Studied
it during the Winter of this year and then did it via a = "virtual"=20 portfolio
during April, May and June. Began doing it for the = marbles=20 in June.

- ------=_NextPart_000_00D6_01C34952.64F660C0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 21:40:44 -0400 From: "John Solarno" Subject: [CANSLIM] AAII letter to the editor I just received my July copy of the AAII Journal (published by the American Association of Individual Investors.) In the letter to the editor section, there is a blistering objection to an article in the June issue by William O'Neill called "The Big Picture: How to Determine the Stock Market's Direction." The letter, written by a Jon A. Ford, says that O'Neil acknowledged, in his June article, that the bear market began in March of 2000. "What he doesn't say," writes Ford, "is that his Investor's Business Daily failed to notify investors that it was time to go into cash until February 13, 2003 - long after a large chunk of investment savings had gone up in smoke. "O'Neil's 'cut your losses at 7% rule' did not help," Ford continues, "because for almost the entire duration of the bear market, the encouragement was to continue buying newly identified stocks with sale proceeds. This effectively sets up a series of 7% to 8% stock market losses." Ford reminds readers that "as good as CANSLIM and related O'Neil media may be, the bottom line is for people to buy and sell stocks - and surpass others- but using O'Neil and company's merchandise." "Finally, after three years and 25% to 35% or more annual deterioration in investors' stock portfolios," says Ford, "Investor's Business Daily finally advised readers to go to cash - a recommendation that, if acted upon, would have effectively crystallized losses and kept investors from participating in the market increases only a month later." Ouch! I thought I'd throw this out to the group for comment. John Solarno - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 21:21:57 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] AAII letter to the editor Hi John, I have not read the AAII article to which you refer, but I remember distinctly that in early March *2000*, the Big Picture column used these exact words... "If you are not already out of this market, you should be." I wish to high heaven I'd kept a copy of it, because my investing/coffee buddy and I have reminisced about the day we read it many times since. I often fail to understand the criticism that O'Neil faces with respect to the IBD. It is, afterall, a newspaper, a tool which is designed to educate and *report* the news. It is not touted as an investment newsletter full of stock "picks" and I've never understood why people expect it to be so. For example, I often hear folks criticize the IBD for their "Monday night quarterbacking." Last I checked, newspapers always report the news *after* it occurs, not before and tell the story of what *has* happened. True, O'Neil makes money on his investment tools: DGO, WONDA, IBD, Daily Graphs printed product, etc. But I fail to see how making tools available at a price is a crime. I'm sure Michael Dell would be amazed if people were to pummel him for his willingness to actually *sell* a computer. Or that Warren Buffett would say, no, no, don't buy a DQ Dude, a box of See's candy, or a policy with Geico. O'Neil has never once said, "you must buy this or you must buy that." One can read the IBD for free at the local library and, while it's laborious, one could actually use the reporting in the paper in conjunction with other free tools on the internet for fundamentals and charting to select stocks. Without a doubt, it's far easier to do CANSLIM with the right set of tools, but the choices for doing so are far wider than they once were. All in all, there are many many people who have changed their lives and their investing success with what they have learned about investing by reading O'Neil's work and there will always be those who want to blame the guru for their lack of success. That sort of transference of responsibility in itself shows that the person doesn't really get it. Because, above all else, what O'Neil teaches is self-discipline and self-reliance. Someone said it here the other day, though I don't remember the exact quote: "There are far more good trading systems than there are good traders." Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of John Solarno Sent: Sunday, July 13, 2003 7:41 PM To: canslim@lists.xmission.com Subject: [CANSLIM] AAII letter to the editor I just received my July copy of the AAII Journal (published by the American Association of Individual Investors.) In the letter to the editor section, there is a blistering objection to an article in the June issue by William O'Neill called "The Big Picture: How to Determine the Stock Market's Direction." The letter, written by a Jon A. Ford, says that O'Neil acknowledged, in his June article, that the bear market began in March of 2000. "What he doesn't say," writes Ford, "is that his Investor's Business Daily failed to notify investors that it was time to go into cash until February 13, 2003 - long after a large chunk of investment savings had gone up in smoke. "O'Neil's 'cut your losses at 7% rule' did not help," Ford continues, "because for almost the entire duration of the bear market, the encouragement was to continue buying newly identified stocks with sale proceeds. This effectively sets up a series of 7% to 8% stock market losses." Ford reminds readers that "as good as CANSLIM and related O'Neil media may be, the bottom line is for people to buy and sell stocks - and surpass others- but using O'Neil and company's merchandise." "Finally, after three years and 25% to 35% or more annual deterioration in investors' stock portfolios," says Ford, "Investor's Business Daily finally advised readers to go to cash - a recommendation that, if acted upon, would have effectively crystallized losses and kept investors from participating in the market increases only a month later." Ouch! I thought I'd throw this out to the group for comment. John Solarno - - - -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: Sun, 13 Jul 2003 21:31:31 -0500 From: "Gene Ricci" Subject: Re: [CANSLIM] AAII letter to the editor This is a multi-part message in MIME format. - ------=_NextPart_000_049A_01C34986.205543D0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable ----- Original Message -----=20 From: John Solarno=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 13, 2003 8:40 PM Subject: [CANSLIM] AAII letter to the editor I just received my July copy of the AAII Journal (published by the = American Association of Individual Investors.) In the letter to the editor = section, there is a blistering objection to an article in the June issue by = William O'Neill called "The Big Picture: How to Determine the Stock Market's Direction." The letter, written by a Jon A. Ford, says that O'Neil acknowledged, = in his June article, that the bear market began in March of 2000. "What he = doesn't say," writes Ford, "is that his Investor's Business Daily failed to = notify investors that it was time to go into cash until February 13, 2003 - = long after a large chunk of investment savings had gone up in smoke. "O'Neil's 'cut your losses at 7% rule' did not help," Ford continues, "because for almost the entire duration of the bear market, the encouragement was to continue buying newly identified stocks with sale proceeds. This effectively sets up a series of 7% to 8% stock market losses." Ford reminds readers that "as good as CANSLIM and related O'Neil media = may be, the bottom line is for people to buy and sell stocks - and surpass others- but using O'Neil and company's merchandise." "Finally, after three years and 25% to 35% or more annual = deterioration in investors' stock portfolios," says Ford, "Investor's Business Daily = finally advised readers to go to cash - a recommendation that, if acted upon, = would have effectively crystallized losses and kept investors from = participating in the market increases only a month later." Ouch! =20 I thought I'd throw this out to the group for comment. John Solarno - -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_049A_01C34986.205543D0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

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

From:=20 John=20 Solarno

To: canslim@lists.xmission.com=

Sent: Sunday, July 13, 2003 = 8:40 PM

Subject: [CANSLIM] AAII letter = to the=20 editor

John, when I read the article I = felt that=20 the writer's issue was with WON and IBD, not a criticism of CANSLIM = per se.=20 Is that your take?

While WON may have announced the = beginning=20 of the bear in March of 2000 .... folks ask what did he do after = that?=20 These same folks have little regard for WON, especially those that = quote=20 his full page letter, published in April or May 2001 when = he=20 declared the bear to be over.... I personally have an issue with IBD's = failure=20 to alert their followers that CANSLIM only works in an uptrending = market -=20 for most investors. WON's lack of shorting tools/techniques is = another area=20 of personal criticism. I still bite my lip when I think of = IBD=20 telling me to practice for the day of the return of CANSLIM versus = getting off=20 my butt and learning how to short....

Gene

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

From:=20 John=20 Solarno

To: canslim@lists.xmission.com=

Sent: Sunday, July 13, 2003 = 8:40 PM

Subject: [CANSLIM] AAII letter = to the=20 editor

I just received my July copy of the AAII Journal = (published by=20 the American
Association of Individual Investors.) In the = letter to=20 the editor section,
there is a blistering objection to an article = in the=20 June issue by William
O'Neill called "The Big Picture: How to = Determine the=20 Stock Market's
Direction."

The letter, written by a Jon A. = Ford,=20 says that O'Neil acknowledged, in his
June article, that the bear = market=20 began in March of 2000. "What he doesn't
say," writes Ford, "is = that his=20 Investor's Business Daily failed to notify
investors that it was = time to go=20 into cash until February 13, 2003 - long
after a large chunk of = investment=20 savings had gone up in smoke.

"O'Neil's 'cut your losses at 7% = rule'=20 did not help," Ford continues,
"because for almost the entire = duration of=20 the bear market, the
encouragement was to continue buying newly = identified=20 stocks with sale
proceeds. This effectively sets up a series of 7% = to 8%=20 stock market
losses."

Ford reminds readers that "as good as = CANSLIM=20 and related O'Neil media may
be, the bottom line is for people to = buy and=20 sell stocks - and surpass
others- but using O'Neil and company's=20 merchandise."

"Finally, after three years and 25% to 35% or = more annual=20 deterioration in
investors' stock portfolios," says Ford, = "Investor's=20 Business Daily finally
advised readers to go to cash - a = recommendation=20 that, if acted upon, would
have effectively crystallized losses and = kept=20 investors from participating
in the market increases only a month=20 later."

Ouch!

I thought I'd throw this out to the = group=20 for comment.

John Solarno

-
-To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim". Do=20 not use quotes in your email.
- ------=_NextPart_000_04B6_01C3498B.AD2523C0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 23:13:23 -0400 From: Hong Hsu Subject: Re: [CANSLIM] AAII letter to the editor Katherine, I agree all of your opinions with one exception. That is, always cut your loss at 7% or 8% from your entry price. I can not find evidence to support that logically from Mr. O'Neil's book or from my experience. It seems to me that if a stock fails from its first breakout, then the rule holds TRUE. But after first breakout, the stock may build its second flat base, or continue went up for a while. You may buy at pull back, support line or on the top of second flat base. In these cases, if you stick with 7% or 8% loss rule, most likely you will be forced out because of volatile. In a message I post two days ago, I was trying to find a solution to the issue. But got no response. I am thinking to use price progress and time to determine stop, something like Parabolic System from http://www.tradertalk.com/, OR simply use %, but instead measure from entry point, you measure it from first pivot OR Fibonacci retreat line. Your comments will be appreciated, - -Hong - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 22:28:07 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] AAII letter to the editor Hi Hong, The 7-8% rule was originally designed based on an entry at a breakout above the pivot on high volume from a valid intermediate term base. That base can be either cup with handle, flat, double bottom, etc. The reasoning behind the rule was based on WON's research where he observed that, on average, a strong breakout will fall no more than 8% below its pivot before continuing the move up. As with all things CANSLIM, remember that this is based on *average* behavior of stocks after a breakout. That means that some fall more, some fall less before moving ahead. For a beginner to CANSLIm and/or technical analysis it's probably good enough to keep a newbie out of trouble. As one becomes more familiar with technical analysis and has several years of experience under their belt, understanding the behavior of the stock itself will help set more meaningful stops. I disagree that one should automatically set an 8% stop loss when entering on a pullback and my understanding of reading WON and the IBD's writings on this are that the 8% does not necessarily apply with this type of entry. A pullback entry is one in which one waits for a stock to pull back to near term support, but there is not necessarily a lengthy consolidation at that particular support. If the stock falls on high volume below that support, there's trouble in River City. 8% may be *way* too loose a stop. Afterall, one can still lose their shirt 8% at a time. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Hong Hsu Sent: Sunday, July 13, 2003 9:13 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] AAII letter to the editor Katherine, I agree all of your opinions with one exception. That is, always cut your loss at 7% or 8% from your entry price. I can not find evidence to support that logically from Mr. O'Neil's book or from my experience. It seems to me that if a stock fails from its first breakout, then the rule holds TRUE. But after first breakout, the stock may build its second flat base, or continue went up for a while. You may buy at pull back, support line or on the top of second flat base. In these cases, if you stick with 7% or 8% loss rule, most likely you will be forced out because of volatile. In a message I post two days ago, I was trying to find a solution to the issue. But got no response. I am thinking to use price progress and time to determine stop, something like Parabolic System from http://www.tradertalk.com/, OR simply use %, but instead measure from entry point, you measure it from first pivot OR Fibonacci retreat line. Your comments will be appreciated, - -Hong - - - -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: Sun, 13 Jul 2003 23:37:59 -0400 From: Hong Hsu Subject: Re: [CANSLIM] AAII letter to the editor Katherine, Appreciate to share your thought. -Hong Katherine Malm wrote: >Hi Hong, > >The 7-8% rule was originally designed based on an entry at a breakout above >the pivot on high volume from a valid intermediate term base. That base can >be either cup with handle, flat, double bottom, etc. The reasoning behind >the rule was based on WON's research where he observed that, on average, a >strong breakout will fall no more than 8% below its pivot before continuing >the move up. As with all things CANSLIM, remember that this is based on >*average* behavior of stocks after a breakout. That means that some fall >more, some fall less before moving ahead. For a beginner to CANSLIm and/or >technical analysis it's probably good enough to keep a newbie out of >trouble. As one becomes more familiar with technical analysis and has >several years of experience under their belt, understanding the behavior of >the stock itself will help set more meaningful stops. > >I disagree that one should automatically set an 8% stop loss when entering >on a pullback and my understanding of reading WON and the IBD's writings on >this are that the 8% does not necessarily apply with this type of entry. A >pullback entry is one in which one waits for a stock to pull back to near >term support, but there is not necessarily a lengthy consolidation at that >particular support. If the stock falls on high volume below that support, >there's trouble in River City. 8% may be *way* too loose a stop. Afterall, >one can still lose their shirt 8% at a time. > >Katherine > > >-----Original Message----- >From: owner-canslim@lists.xmission.com >[mailto:owner-canslim@lists.xmission.com]On Behalf Of Hong Hsu >Sent: Sunday, July 13, 2003 9:13 PM >To: canslim@lists.xmission.com >Subject: Re: [CANSLIM] AAII letter to the editor > > >Katherine, > >I agree all of your opinions with one exception. That is, always cut >your loss at 7% or 8% from your entry price. I can not find evidence >to support that logically from Mr. O'Neil's book or from my experience. > >It seems to me that if a stock fails from its first breakout, then the >rule holds TRUE. But after first breakout, the stock may build its >second flat base, or continue went up for a while. You may buy at pull >back, support line or on the top of second flat base. In these cases, >if you stick with 7% or 8% loss rule, most likely you will be forced out >because of volatile. In a message I post two days ago, I was trying >to find a solution to the issue. But got no response. > >I am thinking to use price progress and time to determine stop, >something like Parabolic System from http://www.tradertalk.com/, OR >simply use %, but instead measure from entry point, you measure it from >first pivot OR Fibonacci retreat line. > >Your comments will be appreciated, >-Hong > > > > > >- >-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. > > > - -- < As a computer I find your faith in technology amusing. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 13 Jul 2003 23:39:07 -0400 From: "Erik Harris" Subject: Re: [CANSLIM] views on WEBX I'm pretty sure he means institutional ownership. That is a concern of mine. I'll have to watch it closely. It is also typically shorted pretty heavily due to its trading range. Thanks for the comments. Erik - ----- Original Message ----- From: "Tomas" To: Sent: Sunday, July 13, 2003 11:02 PM Subject: Re: [CANSLIM] views on WEBX > Jans, > > I am not sure I understand you. What do you mean by > funds? > > > tomas > > --- Spencer48@aol.com wrote: > > Tomas: > > > > I just have one comment: Funds are kinda high, > > in my opinion, at 47%. > > > > jans > > > > > > In a message dated 7/11/2003 1:53:52 AM Eastern > > Daylight Time, > > tomas986@yahoo.com writes: > > > > << Like you said, the fundies look very strong. > > They do > > have a great product. My company recently started > > using WebEX, and it is a great product. >> > > > > - > > -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!? > SBC Yahoo! DSL - Now only $29.95 per month! > http://sbc.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. ------------------------------ Date: Sun, 13 Jul 2003 23:53:21 -0400 From: "John Solarno" Subject: RE: [CANSLIM] AAII letter to the editor Yes indeed, his beef seemed to be limited to IBD, not the CANSLIM methodology. =20 And Katherine is correct that people should not look to IBD to "predict" what is about to happen, anymore than any newspaper can predict what's = going to happen next week. That's why it's called "reporting" and not "prognostication."=20 However, I recently hauled six months of back issues of IBD off to the landfill for recycling. I remember seeing issue after issue with page = one lists of "leading stocks," most of which were shortly soon felled by the = "7% rule." That's obviously not IBD's fault, but I must say that I found the = overall tone of IBD over these last two tough years to be much more upbeat than facts would warrant. John=20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Gene Ricci Sent: Sunday, July 13, 2003 11:11 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] AAII letter to the editor John,=A0 when I read the article I felt that the writer's issue was with = WON and IBD,=A0not a criticism of CANSLIM per se. Is that your take? =A0 While WON=A0may have announced the beginning of the bear in March of = 2000 .... folks ask what did he=A0do after that? These same=A0folks have little = regard for WON, especially those that quote his full page letter,=A0published = in=A0April or May=A02001 when he declared the bear to be over.... I personally have an = issue with IBD's failure to alert their=A0followers that CANSLIM only works in = an uptrending market - for most investors. WON's lack of=A0shorting tools/techniques is another area of personal criticism.=A0 I still = bite=A0my lip when I think of IBD telling me to practice for the day of the return of CANSLIM versus getting off my butt and learning how to short....=20 =A0 Gene =A0 =A0 =A0 =A0 - ----- Original Message -----=20 From: John Solarno=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 13, 2003 8:40 PM Subject: [CANSLIM] AAII letter to the editor I just received my July copy of the AAII Journal (published by the = American Association of Individual Investors.)=A0 In the letter to the editor = section, there is a blistering objection to an article in the June issue by = William O'Neill called "The Big Picture: How to Determine the Stock Market's Direction." The letter, written by a Jon A. Ford, says that O'Neil acknowledged, in = his June article, that the bear market began in March of 2000. "What he = doesn't say," writes Ford, "is that his Investor's Business Daily failed to = notify investors that it was time to go into cash until February 13, 2003 - = long after a large chunk of investment savings had gone up in smoke. "O'Neil's 'cut your losses at 7% rule' did not help," Ford continues, "because for almost the entire duration of the bear market, the encouragement was to continue buying newly identified stocks with sale proceeds. This effectively sets up a series of 7% to 8% stock market losses." Ford reminds readers that "as good as CANSLIM and related O'Neil media = may be, the bottom line is for people to buy and sell stocks - and surpass others- but using O'Neil and company's merchandise." "Finally, after three years and 25% to 35% or more annual deterioration = in investors' stock portfolios," says Ford, "Investor's Business Daily = finally advised readers to go to cash - a recommendation that, if acted upon, = would have effectively crystallized losses and kept investors from = participating in the market increases only a month later." Ouch!=A0=20 I thought I'd throw this out to the group for comment. John Solarno - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim".=A0 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 #3415 ****************************** 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.