From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #684 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Tuesday, August 24 1999 Volume 02 : Number 684 In this issue: Re: [CANSLIM] M and adv/dec line (was "What is my purpose here?") Re: [CANSLIM] M and adv/dec line (was "What is my purpose here?") RE: [CANSLIM] M and adv/dec line (was "What is my purpose here?") [CANSLIM] DELL [Connie Mack] [CANSLIM] Another followthrough day Re: [CANSLIM] Now for something different (ie less argument!) [CANSLIM] Technical Analysis RE: [CANSLIM] Break out [CANSLIM] Temper tantrums and rudeness... [CANSLIM] price break out [CANSLIM] why I'm here [CANSLIM] Acc/Dis Numbers [CANSLIM] stocks [CANSLIM] Suggestion re Connie/Tom/Jeffry/Dan e-Mail Re: [CANSLIM] price break out [CANSLIM] Fortune magazines list of 100 Fastest Growing Companies RE: [CANSLIM] Fortune magazines list of 100 Fastest Growing Companies (remainder of list) Re: [CANSLIM] why I'm here [CANSLIM] RE:Fortune's Top 100 buy candidate Re: [CANSLIM] why I'm here [CANSLIM] RE: "What is my purpose here?" Re: [CANSLIM] stocks [CANSLIM] Another perspective on PSEM. [Connie Mack] [CANSLIM] PSEM and negative divergence. [Connie Mack] [CANSLIM] RFMD B/O ? ---------------------------------------------------------------------- Date: Mon, 23 Aug 1999 13:38:52 -0700 From: "Peter Newell" Subject: Re: [CANSLIM] M and adv/dec line (was "What is my purpose here?") >If we were to look at the NASDAQ A/D line over the >last three years, we would see mostly sharp declines. >Yet, the NASDAQ index has gone up around five times. >Given this fact, it would seem that the A/D line is >not very useful. If the NASDAQ 100 advances everyday >but the rest of the issues decline everyday, then the >NASDAQ index would blow through the roof, but the A/D >line would fall through the floor. If you look at the NASDAQ A/D line over any period of time its usually negative. The NYSE A/D is a better indicator WHEN backed up by other indicators. Peter - - ------------------------------ Date: Mon, 23 Aug 1999 20:02:56 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] M and adv/dec line (was "What is my purpose here?") Luke, Is it okay if I let WON answer your question about the advance/decline line ? From IBD-26WeeksToInvestmentSucces-98\Week14-HowToSpotWhenMarketBottoms.htm; Q: What are some other ways to use the General Market page? O'NEIL: During attempted rallies in a bear market, the advance/decline line (produced by taking all NYSE stocks that rise in price for the day and subtracting those that fall) can sometimes be of value when it shows no ability to rebound when the indexes try to rally. However, IBD's Mutual Fund Index can be used in the same way. For example, in August it hovered near its closing lows for three days while, at the same time, the Dow Jones industrial average attempted to rally near its upper range and then promptly dropped rapidly. I do not use the advance/decline line at other times because it has been known to give premature signals way before a market's eventual top. It also can show false weakness at some bottoms when the market is actually turning up. There are dozens of other popular general market technical indicators that are of limited use. I've found them to be subject to frequent misinterpretation, faulty or just plain confusing. And the last thing you ever want to do in the market is get confused. I stick to the key ones mentioned earlier. Advance/decline lines, overbought/oversold indicators, the total number of new high prices vs. new low prices, up-down volume or on-balance volume, buying power vs. selling pressure, moving averages and trend lines are mainly a waste of time, based on my research and experience over the years. They could mislead you and cost you a lot of money. At 12:01 AM 8/23/99 -0700, you wrote: >My purpose here is to try to pick up anything that can >help me make money - CANSLIM or not. I'm one of the >lurkers because I don't subscribe to IBD and feel >somewhat inadequate to post here. It can be very >intimidating here. > >Anyway, let me change the subject to something that >may be CANSLIM relevant. I think that most of us will >agree that "M" is the most difficult to figure out. I >have also heard many professional traders/fund >managers say that the advance/decline line is one of >the first chart that they look at. Does anyone use >the A/D line to help figure out "M"? Can you share >your insights? > >If we were to look at the NASDAQ A/D line over the >last three years, we would see mostly sharp declines. >Yet, the NASDAQ index has gone up around five times. >Given this fact, it would seem that the A/D line is >not very useful. If the NASDAQ 100 advances everyday >but the rest of the issues decline everyday, then the >NASDAQ index would blow through the roof, but the A/D >line would fall through the floor. > >So, why is the A/D line so important? Can it be used >to figure out "M"? Thanks for any help. > >Best regards, >Luke Lang > >--- Johan Van Houtven >wrote: >> >> "What is my purpose here?" > >__________________________________________________ >Do You Yahoo!? >Bid and sell for free at http://auctions.yahoo.com > > > > >- > > Johan === - - ------------------------------ Date: Mon, 23 Aug 1999 12:24:57 -0600 From: PWahl@sysinn.com Subject: RE: [CANSLIM] M and adv/dec line (was "What is my purpose here?") I've tried watching it from time to time over the last year and I couldn't get much from it. Interestingly, if you plot the nasdaq a/d line over top of the nasdaq price chart, you can see that the a/d line tracked the nasdaq move up last spring/summer, then fell along with the nasdaq into the fall, but when the nasdaq rebounded off of its October low, the A/D line didn't recover. This is obviously a sign of greater market weakness, but still, the main thing is that part of the market did go up and you could have made money. I'm continuing to monitor the A/D line, but really only as an experiment to see if I can learn anything from it, and not to make any market decisions at this point. > -----Original Message----- > From: Luke Lang [SMTP:lukelang@yahoo.com] > Sent: Monday, August 23, 1999 1:02 AM > To: canslim@lists.xmission.com > Subject: [CANSLIM] M and adv/dec line (was "What is my purpose > here?") > > > Anyway, let me change the subject to something that > may be CANSLIM relevant. I think that most of us will > agree that "M" is the most difficult to figure out. I > have also heard many professional traders/fund > managers say that the advance/decline line is one of > the first chart that they look at. Does anyone use > the A/D line to help figure out "M"? Can you share > your insights? > > - - ------------------------------ Date: Mon, 23 Aug 1999 15:36:07 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] If DELL can close above 45.06 or so, there is little resistance to about 48.5. Price just passed 45.5 at 3:35. Prudential gave it a kick this morning. Connie Mack - - ------------------------------ Date: Mon, 23 Aug 1999 21:52:21 +0200 From: Johan Van Houtven Subject: [CANSLIM] Another followthrough day We are not at the close yet, but we already have another followthrough day on the NASDAQ. Leaders up big: ARBA +13 7/8 PHCM +24 11/16 JNPR +22 1/4 RBAK +21 3/4 Johan === - - ------------------------------ Date: Mon, 23 Aug 1999 20:53:25 +0100 From: "Marc Laniado" Subject: Re: [CANSLIM] Now for something different (ie less argument!) Thank you Earl! So there are people who try to apply CANSLIM principles!! I look forward to your future messages. Best Marc - ----- Original Message ----- From: Earl Setser To: Sent: Monday, August 23, 1999 5:13 AM Subject: Re: [CANSLIM] Now for something different (ie less argument!) > Wow, that's looking quite close to my "hot list". Let's see, here it is: > RFMD > VTSS > ETEK > MCRL > CGN > CMVT > CSCO > NTAP > BGEN > MMCN > LGTO > SEBL > EFII > CMED > DTM > EXPD > SFP > TWRI > HH > TIF > WLFI > > At 12:14 AM 8/23/99 +0100, you wrote: > >Take a look at > >NCOG > >NTAP > >CGN > >CMVT > >SNPS > >AMGN > >SCI > >WSM > >ORCL > >VTSS > >MCHP > >DTM > >APEX > >CMED > >SUNQ > >EQT > > > >Marc > > > > > > > > > > > >- > > > > > > > - > > - - ------------------------------ Date: Mon, 23 Aug 1999 21:01:00 +0100 From: "Marc Laniado" Subject: [CANSLIM] Technical Analysis Connie, Thank you for your analysis. Your insight is helpful. Personally, I don't want to enter the argument, sorry discussion, on CANSLIM vs other styles, but it is easy for people to use message rules to eliminate your messages if they want. I also believe that evolution is important and that continual discussion of all investing styles is important for the health of the group. One of the messages that O'Neill etc say is not to fight the market, but work with it. As such, we should be open to learning other methods or how other people work to improve our success. I think a narrow approach to investing will be to our detriment not our benefit. Marc - - ------------------------------ Date: Mon, 23 Aug 1999 14:19:55 -0600 From: PWahl@sysinn.com Subject: RE: [CANSLIM] Break out I don't think this constitutes a breakout, MGIC was not really in a base, at best you could say that it had formed a sort of flag. > -----Original Message----- > From: Surindra J. Singh [SMTP:sjs7b@unix.mail.virginia.edu] > Sent: Monday, August 23, 1999 9:08 AM > To: canslim@lists.xmission.com > Subject: [CANSLIM] Break out > > Looks like MGIC is breaking out at twice the volume..... > What ever it is worth..... > Good can slim numbers and related to Lynx which is red hot (not hat) these > days. > (I am already in) > > Have a nice treading day. > > Surindra > > > > - - - ------------------------------ Date: Mon, 23 Aug 1999 14:38:03 -0600 From: Jeff Salisbury Subject: [CANSLIM] Temper tantrums and rudeness... Greetings, It pains me to see our group degenerate into ad hominem attacks. Just to remind you, our canslim forum is not moderated in the traditional sense. As the owner of our once happy group, I don't have the time or inclination to review every posting. I do use some automatic features to block outside spammers, and a few other tricks to raise the quality of our group. In general, I rely on the group to moderate itself. For those of you who have been involved in this latest skirmish, lets get back on topic. Jeff Salisbury - canslim admin/owner - - ------------------------------ Date: Mon, 23 Aug 1999 21:47:32 +0100 From: "Marc Laniado" Subject: [CANSLIM] price break out I see many stocks made price breakouts without volume eg RFMD which gapped up. Did anyone see CANSLIM stocks breakout on volume? I've been looking at NTAP, which was in a trading range, and wondering whether it's recently made a cup and handle. I suppose not. - - ------------------------------ Date: Mon, 23 Aug 1999 17:59:53 -0700 From: George Cowsar Subject: [CANSLIM] why I'm here I'm one of the 650. I'm here to learn about CANSLIM. <-- that's a period Now if CANSLIM can be helped by charting and other market timing and analysis techniques that's good. But minute by minute updates on short term trading tactics are not interesting to me. I have a question or two for you experienced CANSLIMers (Please excuse my ignorance): - - How much difference does the 'M' make in your experience? Do you stay in the market during a correction or a real bear market? If so, then is it just a matter of being more careful and working harder to pick the best CANSLIM stocks and time the entry and exit? corollary: why not be just as careful all along? - - How much time does it take to work this strategy? both learning curve and once you get in the groove. Is it significantly more during bear markets? More questions later... Thanks, George - - ------------------------------ Date: Mon, 23 Aug 1999 23:15:53 EDT From: FBNAirPlt@aol.com Subject: [CANSLIM] Acc/Dis Numbers Here are the latest Acc/Dis numbers: Date A B C D E AB/A:E %E 8/16/99 902 2549 1423 1243 502 52% 8% 8/17/99 944 2636 1357 1216 468 54% 7% 8/18/99 939 2648 1330 1216 490 54% 7% 8/19/99 979 2643 1368 1181 461 55% 7% 8/20/99 960 2652 1336 1188 489 55% 7% 8/23/99 946 2658 1353 1194 477 54% 7% Spreedsheet version Date,A,B,C,D,E,AB/A:E,%E 8/16/99,902,2549,1423,1243,502,52%,8% 8/17/99,944,2636,1357,1216,468,54%,7% 8/18/99,939,2648,1330,1216,490,54%,7% 8/19/99,979,2643,1368,1181,461,55%,7% 8/20/99,960,2652,1336,1188,489,55%,7% 8/23/99,946,2658,1353,1194,477,54%,7% Robert - - ------------------------------ Date: Mon, 23 Aug 1999 21:58:00 -0800 From: "Patrick Wahl" Subject: [CANSLIM] stocks Here are a couple that broke out today that have some good CANSLIM numbers, broke out of sounds bases on good volume, worth a further look- MGM Grand (MGG) Pericom Semi (PSEM) - - ------------------------------ Date: Tue, 24 Aug 1999 07:09:44 -0400 From: Walter Stock Subject: [CANSLIM] Suggestion re Connie/Tom/Jeffry/Dan e-Mail To the group, Now that the smoke is clearing from the latest firefight, I would like to offer a quiet suggestion. If you do not like what a member or guest of our group has to say, then please indulge us all and use your e-mail filter so that his or her mailings don't give you a really bad day. If you don't know how to use your filter, then please learn to. And make it sooner not later. In case anyone has missed the gist of what I am saying, let me quietly repeat: USE YOUR BLOODY FILTER ! NOW ! The rest of us might want to read what he or she has to say. Thank you. Walter Oakville, Ontario, Canada - - ------------------------------ Date: Tue, 24 Aug 1999 04:34:18 -0700 (PDT) From: rolatzi Subject: Re: [CANSLIM] price break out BGEN broke out of a one month base on greater than a 50% increase in volume. The pattern however is more like a flat base than a cup and saucer and the base is too short for WON. None the less the break out is rather impressive with a 7% increase yesterday and a general shape like a shallow cup and handle. I have just returned from vacation and haven't carefully followed the arguments of the last few weeks but nonetheless I will weigh in on what I want from the group. I want to see screening and discussion of canslim stocks and how to use technical analysis to improve our timing. While I think that Connie Mack has contributed immeasurably to the group, I don't think that day trading is a fruitful use of this group's bandwidth. Those interested in buy and sell signals for day trading stocks would be better served using Instant Messenger of ICQ where the signals and discussions can be delivered in a more timely manner. The use of this group for day trading signals causes an increase in noise with little direct benefit to traders. After seeing the vitriol generated by this discussion, I fully expect to be attacked, but I need to weigh in with my own needs and desires for this group. On another note, doe anyone know what happened to osxstocks.com.? It generates a 403 forbidden error message when I attempt to open it. Finally, thanks to whomever (Johan perhaps?) posted the Medved Quote tracker. It has really enhanced my ability to follow my stocks and the market during the day at work. Ciao, rolatzi - --- Marc Laniado wrote: > I see many stocks made price breakouts without volume eg RFMD > which gapped > up. > Did anyone see CANSLIM stocks breakout on volume? > I've been looking at NTAP, which was in a trading range, and > wondering > whether it's recently made a cup and handle. I suppose not. > > > > - > > __________________________________________________ Do You Yahoo!? Bid and sell for free at http://auctions.yahoo.com - - ------------------------------ Date: Tue, 24 Aug 1999 06:01:15 -0600 From: "Dan Sutton" Subject: [CANSLIM] Fortune magazines list of 100 Fastest Growing Companies An article in the most recent edition of Fortune magazine has a list of the fastest growing companies, ranked by several criteria. Until I can research them further, I would say that the majority of them would rank as CANSLIM prospects...certainly worthy of being on a watchlist. Unfortunately the article does not provide the symbols so I will look them up and post them. Here are a few to start with: SEBL MTH THQ NTAP CTXS SFP LBRW VRTS JAKK ACRT VTSS CGX DELL CREE AEOS QCOM ARGX PLMD KELL RAIL AH ESA ACTN TKLC LGTO BXM MNC ASDV CPWR HAUP VISX ZOMX AVT PSUN MERQ SUMX AN WHIT PRGX BGEN AATT RAIN ITWO MNTG OSTE REXI TWR CADE NSIT ANLT HNCS - - ------------------------------ Date: Tue, 24 Aug 1999 06:24:58 -0600 From: "Dan Sutton" Subject: RE: [CANSLIM] Fortune magazines list of 100 Fastest Growing Companies (remainder of list) Here are the remaining symbols..(and wouldn't you know it, in a different article the symbols were all listed): CBIZ CBUK CBR AGM FNCO MNMD CMED TSRI DY MODT SAPE SLI NVH VSIO NBTY DSD KEA NCSS TLAB OTRKB QTRN HGR MCRL PMB WND MRX SLVN URS GBBK RCMT VTS MK BXG SHLR CKR RXSD RCGI HPK IMPH TRC EPG RESM CEFT DLTR TECD STC PMRY FYII PFX - - ------------------------------ Date: Tue, 24 Aug 1999 08:42:12 -0400 From: Sam Funchess Subject: Re: [CANSLIM] why I'm here "M" matters a lot. It determines the direction your group of stocks is most likely travel in. This time I held fast in the market correction. I had a a substantial profit cushion in all of my stocks and was not worried about triggering the 10% loss rule. I only felt comfortable holding on to these positions because of their strong leadership. So, I feel it is very important to be careful in picking the stocks you hold. I feel it makes the difference in tough times like we had because there were times when I was worried but not too worried. This helped me maintain my focus, strategy and kept me from trading in and out of stocks. I would say it took me two years of trading to become comfortable in my trading practices. What helped the most was taking a weekend to write down what my trading tactics were (because they will be slightly different than WON's) to help me stay focused on what was important. My mistake early on was paying too much attention to volume and price movement. When I saw a stock move on volume and breaking out, I bought. I forgot the "N" new part of a company. I found the new part is just as important in a strong stock as the volume and ownership components. You will get focus in one or more areas of CANSLIM and probably get hung up. Just learn from it and move on to bigger profits. Also, I feel you must anticipate and be excited to break even your first year if trading. I had two real winners that paid for all of my mistakes the first year. Hope this helps. Sam George Cowsar wrote: > I'm one of the 650. I'm here to learn about CANSLIM. <-- that's a period > > Now if CANSLIM can be helped by charting and other market timing and analysis techniques that's good. But minute by minute updates on short term trading tactics are not interesting to me. > > I have a question or two for you experienced CANSLIMers (Please excuse my ignorance): > > - How much difference does the 'M' make in your experience? Do you stay in the market during a correction or a real bear market? If so, then is it just a matter of being more careful and working harder to pick the best CANSLIM stocks and time the entry and exit? corollary: why not be just as careful all along? > > - How much time does it take to work this strategy? both learning curve and once you get in the groove. Is it significantly more during bear markets? > > More questions later... > > Thanks, > George > > - - - ------------------------------ Date: Tue, 24 Aug 1999 06:52:28 -0600 From: "Dan Sutton" Subject: [CANSLIM] RE:Fortune's Top 100 buy candidate Of the 100 stocks I just posted, the only one that looks interesting to me as far as an immediate buy signal is VSIO. The buy signal I use is a Stochastic RSI trigger . Backtesting this particular entry trigger shows that over the past year VSIO tripped the buy signal on 9/1/98, 9/2/98, 12/11/98, 12/14/98, 6/24/99, 8/20/99 and 8/23/99. All trades (other than the current one) were closed within 10 days at a profit ranging from $2 to $8 per share. The chart pattern is definitely NOT CANSLIM as far as having established a base or cup and handle, but the signal works for me! - - ------------------------------ Date: Tue, 24 Aug 1999 09:36:06 -0700 From: "Peter Newell" Subject: Re: [CANSLIM] why I'm here George, This is probably the most dangerous time to try canslim, we've had a great runup with very little consolitation. I'd be very cautious and picky until we get a good correction in. Then start buying more aggresively. Peter - -----Original Message----- From: George Cowsar To: canslim@lists.xmission.com Date: Monday, August 23, 1999 5:55 PM Subject: [CANSLIM] why I'm here >I'm one of the 650. I'm here to learn about CANSLIM. <-- that's a period > >Now if CANSLIM can be helped by charting and other market timing and analysis techniques that's good. But minute by minute updates on short term trading tactics are not interesting to me. > >I have a question or two for you experienced CANSLIMers (Please excuse my ignorance): > >- How much difference does the 'M' make in your experience? Do you stay in the market during a correction or a real bear market? If so, then is it just a matter of being more careful and working harder to pick the best CANSLIM stocks and time the entry and exit? corollary: why not be just as careful all along? > >- How much time does it take to work this strategy? both learning curve and once you get in the groove. Is it significantly more during bear markets? > >More questions later... > >Thanks, >George > > > >- > > - - ------------------------------ Date: Tue, 24 Aug 1999 09:34:25 -0500 From: Chris Hudson Subject: [CANSLIM] RE: "What is my purpose here?" Hi. I guess I'll try to answer the question below. I originally joined this list after reading O'Neill's book. I have read many other books also but still consider myself a beginner; that's why I lurk a lot. I've learned a great deal here, not just on CANSLIM but on other topics such as technical analysis. Dr. Rea's posts (on-line and off-line) have helped me greatly. I also enjoy the posts from other members who list stocks that they find interesting. I've been turned on to many companies this way. I enjoy everyone's comments, both CANSLIM and non-CANSLIM. If it's about investing, I'm interested. By the way, I've been a member of other e-mail lists (music, cooking, etc.) and have found that this list is the most civil one I've been on. It seems that when you get right down to it we're all interested in the same thing: making money! -- Chris from S.A. > > CANSLIM list members, please ask yourself this question: > > "What is my purpose here?" > > Once you have answered the question to your satisfaction, > please post the > answer. I think that posting your answer is important. Other > list members > will know what your purpose for being on this list is. > - - ------------------------------ Date: Tue, 24 Aug 1999 09:59:07 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] stocks Morning Patrick-- PSEM has a promising pattern. The several higher highs and higher lows extend out from a good base. Several of my MACDs are buy, and the 3/7/10 gave a First Level Buy Friday. The Second Level Buy that had been in force was not breached; that it was not breached shows short term strength in a strong up trend. PSEM is an example of a Canslim stock that is amenable to an overlay of technical indicators. I.e., there is a conjunction of a stock with good Canslim indicators as well as good technical indicators. (I presume that PSEM is a buy or approaching a buy.) From what Tom and others have taught me about Canslim, one of its drawbacks is the absence of a precise buy and sell procedure. In PSEM, there is the ideal conjunction of the criteria of technical indicators and the indicators of Canslim. If the 3/7/10 EMA is too quick for your taste, alter it to read 5/10/15. Some investors use just a plain 10 EMA. Others use the 10/50. In this instance, the 5/10/15 EMA gives only a nominally different entry from the 3/7/10. You can infer why this similarity exists: the price advance has been slow and uniform. One way to test yourself on chart reading is to look at the technical indicators and imagine what the chart looks like. Once understood, your chart reading will not only be better, it will be sped up. There is no reason why you cannot apply a Williams %R or momentum if you wish further confirmation. But don't look at so many indicators that you're nonplussed by the readings, especially if one or two is contradictory. Three to five technical indicators ought to be enough. Choose them carefully. Then do what they say. If I were to adhere to Canslim, I would add MF and OBV to my criteria. Both are powerful but gross indicators; i.e., they do not give buy and sell signals. They speak to implications, to trends. They are most important when they show positive (or negative) divergences. Never ignore what either is telling you. Look at the Volume+ indicator in BigCharts. The last two bars show strong buying. If things go well with the indicators, you may expect the up trend to continue. Pull up BigCharts and put in MF and OBV. Notice the powerful confirmation from both indicators. To say that there is positive divergence would force you to arbitrarily define some degree of inclination between the price and the indicators. Sometimes there is such an obvious visual difference that you can infer a positive divergence in a stock that is rising. Remember that the perspective of the chart (say, from 1 month to 3 months) changes angles of inclination or declination. The most vivid positive divergence (and the most profitable) exists when you see price declining and the MF and OBV rising. This divergence should get your attention. It says that, irrespective of the declining price, there is underlying strength not reflected in the price. The indicators do not tell you when the price will begin to reflect the underlying strength, but they warn you to be alert. For me, the more recent the divergence and the stronger the divergence, the sooner the reversal. Once a reversal fails to materialize, you must distrust the stock in the future. Positive divergence is used by traders as well as investors. I do not ignore either in day trading. I am considering a few shares of PSEM for my non-trading account. Tom has told me that my favorite trading stock has many Canslim qualities. Damn, what next? I'll post later on DELL. I have just been confirmed of a buy in DELL at 45 11/16. This is an instance in which I exited yesterday at 45.5 and had to re-buy this morning at a higher price. I bought some CPQ yesterday. Connie Mack Patrick Wahl wrote: > Here are a couple that broke out today that have some good > CANSLIM numbers, broke out of sounds bases on good volume, > worth a further look- > > MGM Grand (MGG) > Pericom Semi (PSEM) > > - - - ------------------------------ Date: Tue, 24 Aug 1999 12:44:55 -0400 From: Connie Mack Rea Subject: [CANSLIM] Another perspective on PSEM. [Connie Mack] On BigCharts there is a seldom used indicator that gives another perspective on the relation between price and volume. Click Upper Indicators/Volume by Price. You should get red bars extending from the left. The length of the bars indicates the relative volume at that price. Here is a chance to relate two indicators. Put Volume+ [or just volume] in a lower window and print a chart. See if you can interpret how this indicator and Volume by Price are related. To see how you did, you can get an interpetation of VOP by clicking on Upper Indicators. [Click right on the text.] Connie Mack - - ------------------------------ Date: Tue, 24 Aug 1999 13:13:26 -0400 From: Connie Mack Rea Subject: [CANSLIM] PSEM and negative divergence. [Connie Mack] In my first post, I mentioned the significance of both positive and negative divergences. If you'll pull up an intraday chart in BC and put MACD in a bottom window, you'll see the beginning of a negative divergence as the fast blue line crossed down through the red. Price continued to rise as the crossing took place. Because the cross has taken place above the trigger line [zero line], this may be no more than a momentary correction. A crossover above the trigger is considered a crossover in strength; a crossover [the blue line crossing down through the red] below the trigger is a crossover in weakness. Neither is, however, to be ignored. The opposite proposition occurs when there is an upward crossing below or above the trigger. The 3/7/10 EMA is about to confirm the negative divergence. Now would be a good time to watch the Volume+ indicator. See how it reacts to divergence. There is an 1/8th difference between the bid and asked, but I also see a few quarter point differences. The bid is 17 7/8ths. Price has not yet given in to the negatively diverging MACD. Just as I am closing this, I see a 1/2 point spread, a hint that they buyers are fading. Connie Mack - - ------------------------------ Date: Tue, 24 Aug 1999 12:12:10 -0700 From: "Bill Triffet" Subject: [CANSLIM] RFMD B/O ? Hi all, Usually a lurker here but here goes... Would you consider RFMD having broke out of a double bottom? I bought yesterday morning @ 44 after catching it on earls list (thanks Earl). Even though it is doing wonderful today, was it a good canslim entry? This was my first midday purchase as I'm usually working. Btw, I REALLY enjoy the lists by Tom, Marc, Earl, etc... as it helps me narrow down my picks. This was my first buy in a while. I've been in cash for several weeks based mainly on my perception of IBD's "The Big Picture" section. Even with yesterdays run-up, IBD is still very cautious - insisting on stocks that have a base of seven weeks. That said, I guess I may have answered my own question about RFMD. Comments? - -Bill Triffet - - ------------------------------ End of canslim-digest V2 #684 ***************************** 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.