From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #591 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 Thursday, April 29 1999 Volume 02 : Number 591 In this issue: [CANSLIM] Re: Cup & Handle Screening Tool RE: [CANSLIM] HH [CANSLIM] Re: David Ryan Comments on CBS Marketwatch RE: [CANSLIM] HH HH (was Re: [CANSLIM] DG) RE: HH (was Re: [CANSLIM] DG) Re: HH (was Re: [CANSLIM] DG) Re: HH (was Re: [CANSLIM] DG) [CANSLIM] Strategy for buying gaps. [Connie Mack] ---------------------------------------------------------------------- Date: Wed, 28 Apr 1999 08:16:54 -0700 From: IMF STAFF Subject: [CANSLIM] Re: Cup & Handle Screening Tool We are looking for users to beta-test our cup & handle screening tool which will be complete in about 6 to 8 weeks. You will be able to search on a daily basis for cup & handle breakouts for different time periods.. You will be able to search for 3 month C&H breakouts, 6 month, 1 year C&H breakouts, ect... If you are interested in helping us beta test this feature, send e-mail to cuphandles@imfnet.com In the mean time you can use our other screening tools which you can do all the Canslim searches with and more at http://www.stocktables.com - - ------------------------------ Date: Wed, 28 Apr 1999 10:05:14 -0700 From: Tim Fisher Subject: RE: [CANSLIM] HH I own HH and although it has behaved fairly since the breakout months ago, it has not followed through and IMHO is not going anywhere in the near future. I'm holding since it has stayed well above my stop & I can see no reason to sell it. On 09:53 PM 4/27/99 , David Barash Said: >Thanks, Tom. I'm just beginning to try to figure this out. I appreciate >your helpfulness and honesty. What do you think of HH? > Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Wed, 28 Apr 1999 11:00:47 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] Re: David Ryan Comments on CBS Marketwatch <> One must also consider where that volume is coming from. More than a few people have pointed out that the influence of online trading - particularly daytrading - has complicated the process of interpreting volume patterns in the major indexes, particularly the Naz. If, for example, you separate the top 10 stocks in the NDX from the remaining 90, the former have been rising on declining volume, but the latter have been rising on much stronger volume. A correction in the Internet stocks, or in the Nasdaq "market", may therefore mean nothing more than a decline in a relative handful of stocks. Instead of looking for "distribution", one might be wiser to determine exactly where that distribution is and where the money is going. In other words, a correction in over-extended Internets may cause a correction in the Naz Composite Average, but may have no effect on the thousands of Nasdaq stocks which have little or nothing to do with the Internet and/or which are not overextended. Oil stocks, for example, continue to outperform Internet stocks, just as they have done for two months, but hardly anyone notices because they're so focused on the major market average. - --Db === "Lessons are repeated until they are learned." http://home.talkcity.com//MoneySt/dbphoenix/ _________________________________________________________ Do You Yahoo!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 28 Apr 1999 23:28:20 -0400 From: "David Barash" Subject: RE: [CANSLIM] HH Tim, Thanks for the feedback. What's IMHO though? David - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tim Fisher Sent: Wednesday, April 28, 1999 1:05 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] HH I own HH and although it has behaved fairly since the breakout months ago, it has not followed through and IMHO is not going anywhere in the near future. I'm holding since it has stayed well above my stop & I can see no reason to sell it. On 09:53 PM 4/27/99 , David Barash Said: >Thanks, Tom. I'm just beginning to try to figure this out. I appreciate >your helpfulness and honesty. What do you think of HH? > Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - - - ------------------------------ Date: Thu, 29 Apr 1999 00:19:11 -0400 From: "Tom Worley" Subject: HH (was Re: [CANSLIM] DG) David, Before I voice my opinion on HH, I would be interested in what you think about it. That's the best way you will learn, and find out how well you are understanding CANSLIM. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Wednesday, April 28, 1999 12:53 AM Subject: RE: [CANSLIM] DG Thanks, Tom. I'm just beginning to try to figure this out. I appreciate your helpfulness and honesty. What do you think of HH? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Wednesday, April 28, 1999 12:41 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG David, Let me repeat, a one day, 10% spike in my opinion constitutes nothing but a one day, 10% spike. Looking at a one year chart, I can see your hopes for a cup and handle here. But for me personally, the pattern, esp in what you want to consider a handle, or a right side of cup with handle forming, is just too volatile. To count this chart as a c&h, you have got to use most of an entire one year chart, for me that's simply too long a time period. That's not saying it's not a cup and possible handle, just that I place little confidence in this type of pattern needing so long a time period to form. It looks to me more like a dog of the retail group being dragged upwards by the rest of the group. If you already own it, I hope for your sake I am proven wrong. But today's spike looks to me simply like that, a spike. I would place no bets on whether or not it lasts. It would not be, for me, and entry signal. Nor, if I owned it already, necessarily a signal to sell. It is ambiguous, but doesn't affirm any valid chart pattern by itself. The only positive signal I could infer is that the past week of trading finally touched the 50 dma, and the spike took off from there. And the spike occurred on the second day of above avg volume. Next earnings (Q1) are due 5/12, maybe somebody's reading something into how the first qtr went. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 11:43 PM Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - - - - - - - ------------------------------ Date: Thu, 29 Apr 1999 00:47:54 -0400 From: "David Barash" Subject: RE: HH (was Re: [CANSLIM] DG) tom, I see it as a series of cups and handles: 1) Nov-Dec; 2) Feb-Mar 3); April. I suppose this also looks like a stair-step pattern. Thanks. David - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Thursday, April 29, 1999 12:19 AM To: canslim@lists.xmission.com Subject: HH (was Re: [CANSLIM] DG) David, Before I voice my opinion on HH, I would be interested in what you think about it. That's the best way you will learn, and find out how well you are understanding CANSLIM. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Wednesday, April 28, 1999 12:53 AM Subject: RE: [CANSLIM] DG Thanks, Tom. I'm just beginning to try to figure this out. I appreciate your helpfulness and honesty. What do you think of HH? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Wednesday, April 28, 1999 12:41 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG David, Let me repeat, a one day, 10% spike in my opinion constitutes nothing but a one day, 10% spike. Looking at a one year chart, I can see your hopes for a cup and handle here. But for me personally, the pattern, esp in what you want to consider a handle, or a right side of cup with handle forming, is just too volatile. To count this chart as a c&h, you have got to use most of an entire one year chart, for me that's simply too long a time period. That's not saying it's not a cup and possible handle, just that I place little confidence in this type of pattern needing so long a time period to form. It looks to me more like a dog of the retail group being dragged upwards by the rest of the group. If you already own it, I hope for your sake I am proven wrong. But today's spike looks to me simply like that, a spike. I would place no bets on whether or not it lasts. It would not be, for me, and entry signal. Nor, if I owned it already, necessarily a signal to sell. It is ambiguous, but doesn't affirm any valid chart pattern by itself. The only positive signal I could infer is that the past week of trading finally touched the 50 dma, and the spike took off from there. And the spike occurred on the second day of above avg volume. Next earnings (Q1) are due 5/12, maybe somebody's reading something into how the first qtr went. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 11:43 PM Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - - - - - - - - - ------------------------------ Date: Thu, 29 Apr 1999 01:23:39 -0400 From: "Tom Worley" Subject: Re: HH (was Re: [CANSLIM] DG) Hi David, I will be brief, as it's late, I haven't yet eaten today, and gotta be back up in another 4 hours or so. As a reminder, I am only looking at the one year chart at DGO. In that time period, I see nothing resembling a c&h. I do see a decent double bottom occurring in the July/Sept period, with strong selloff on the 2nd bottom, followed by a steady and volume driven rally, short and reasonable (healthy) correction in Nov, with a subsequent rally from there. Without some research, I can't account for the sharp drop in Feb, however it was on quite light vol, so may have been little more than profit taking by investors bored by the base it was then in. In any case, it recovered on stronger vol and is now basing even higher than before, so may now be following more of a staircase pattern, altho somewhat elongated. A quick review shows that it meets most, if not all, of the elements of CANSLIM. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Thursday, April 29, 1999 12:55 AM Subject: RE: HH (was Re: [CANSLIM] DG) tom, I see it as a series of cups and handles: 1) Nov-Dec; 2) Feb-Mar 3); April. I suppose this also looks like a stair-step pattern. Thanks. David - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Thursday, April 29, 1999 12:19 AM To: canslim@lists.xmission.com Subject: HH (was Re: [CANSLIM] DG) David, Before I voice my opinion on HH, I would be interested in what you think about it. That's the best way you will learn, and find out how well you are understanding CANSLIM. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Wednesday, April 28, 1999 12:53 AM Subject: RE: [CANSLIM] DG Thanks, Tom. I'm just beginning to try to figure this out. I appreciate your helpfulness and honesty. What do you think of HH? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Wednesday, April 28, 1999 12:41 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG David, Let me repeat, a one day, 10% spike in my opinion constitutes nothing but a one day, 10% spike. Looking at a one year chart, I can see your hopes for a cup and handle here. But for me personally, the pattern, esp in what you want to consider a handle, or a right side of cup with handle forming, is just too volatile. To count this chart as a c&h, you have got to use most of an entire one year chart, for me that's simply too long a time period. That's not saying it's not a cup and possible handle, just that I place little confidence in this type of pattern needing so long a time period to form. It looks to me more like a dog of the retail group being dragged upwards by the rest of the group. If you already own it, I hope for your sake I am proven wrong. But today's spike looks to me simply like that, a spike. I would place no bets on whether or not it lasts. It would not be, for me, and entry signal. Nor, if I owned it already, necessarily a signal to sell. It is ambiguous, but doesn't affirm any valid chart pattern by itself. The only positive signal I could infer is that the past week of trading finally touched the 50 dma, and the spike took off from there. And the spike occurred on the second day of above avg volume. Next earnings (Q1) are due 5/12, maybe somebody's reading something into how the first qtr went. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 11:43 PM Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - - - - - - - - - - - ------------------------------ Date: Thu, 29 Apr 1999 06:29:50 -0700 From: Tim Fisher Subject: Re: HH (was Re: [CANSLIM] DG) It was on a split day. Remember the confusion when TMBS split & the price spike/drop? Same thing with HH only the spike was teeny & the drop was large. I saw it happening (got lucky) and removed my stop for the day. It cuts my Killer CASLI scan so IMO it meets all the elements except price, which after the split is (obviously) under $20. At 01:23 AM 4/29/99 -0400, you wrote: >Hi David, >Without some research, I can't account for the sharp >drop in Feb, however it was on quite light vol, so may have >been little more than profit taking by investors bored by >the base it was then in. In any case, it recovered on >stronger vol and is now basing even higher than before, so >may now be following more of a staircase pattern, altho >somewhat elongated. > >A quick review shows that it meets most, if not all, of the >elements of CANSLIM. > >Tom Worley >stkguru@netside.net >chat with me at ICQ # 5568838 >get ICQ software at http://www.icq.com/icqhomepage.html > Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information mailto:tim@OreRockOn.com WWW http://OreRockOn.com - - ------------------------------ Date: Thu, 29 Apr 1999 18:42:22 -0400 From: Connie Mack Rea Subject: [CANSLIM] Strategy for buying gaps. [Connie Mack] Here is a nice little essay on gaps. A Gap occurs when today's opening price is either higher than yesterday's high price (Gap Up) or lower than yesterday's low price (Gap Down) . There are six primary strategies used to play Gaps, four with buy criteria and two with short criteria. They are as follows (terms and definitions are defined at the bottom): Full Gap Down: Buy If a stock's opening price is less than yesterday's low, set a buy stop equal to two ticks more than yesterday's low. Modified Gap Down: Buy If a stock's opening price is less than yesterday's low, revisit the 1 minute chart after 10:30 am and set a buy stop equal to the average of the open and low price achieved in the first hour of trading. This method recommends that the projected daily volume is double the 5 day average. Full Gap Up: Buy If a stock's opening price is greater than yesterday's high, revisit the 1 minute chart after 10:30 am and set a buy stop equal to two ticks above the high achieved in the first hour of trading. Modified Gap Up: Buy If a stock's opening price is greater than yesterday's high, revisit the 1 minute chart after 10:30 am and set a buy stop equal to the average of the open price and the high price achieved in the first hour of trading. This method recommends that the projected daily volume is double the 5 day average. Gap Up: Short If a stock's opening price is greater than yesterday's high, revisit the 1 minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading. Gap Down: Short If a stock's opening price is less than yesterday's low, revisit the 1 minute chart after 10:30 am and set a short stop equal to two ticks below the low achieved in the first hour of trading. Definitions Tick A 'tick' is defined as the bid/ask spread, usually 1/8 to 1/4 point, depending on the stock. Buy Stop A buy stop is a buy order which becomes effective once the price of a stock crosses above a certain price limit. This is the opposite of a stop loss order. Short Sell Stop A short sell stop is a short sell order which becomes effective once the price of a stock crosses below a certain price limit. One can assess the profitability of this method against any recent gapping stocks - see the 5 minutes intraday charts in Mach6. Note: These gap strategies are contributed by Scott McCormick, and used with his permission. The formula for the gap lists in Mach6 were developed in conjunction with him. Scott hosts a position trading forum on Sillicon Investor called Last Shadow's Position Trading. - - ------------------------------ End of canslim-digest V2 #591 ***************************** 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.