From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #865 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, April 4 2000 Volume 02 : Number 865 In this issue: [CANSLIM] GES Re: [CANSLIM] NASDAQ behaviour [CANSLIM] Well, Now What Oh Sages of CANSLIM? Re: [CANSLIM] NASDAQ behaviour [CANSLIM] When I'm way wrong, I try to admit it! [CANSLIM] JDSU Cup and Handle Re: [CANSLIM] Re:AMK Re: [CANSLIM] NASDAQ behaviour Re: [CANSLIM] JDSU Cup and Handle Re: [CANSLIM] JDSU Cup and Handle Re: [CANSLIM] JDSU - in this market??? [CANSLIM] Intro Brian Bellamy Re: [CANSLIM] Intro Brian Bellamy Re: [CANSLIM] Intro Brian Bellamy [CANSLIM] Market direction Re: [CANSLIM] Market direction Re: [CANSLIM] Intro Brian Bellamy [CANSLIM] wow Re: [CANSLIM] wow Re: [CANSLIM] wow Re: [CANSLIM] wow Re: [CANSLIM] Market direction Re: [CANSLIM] Market direction Re: [CANSLIM] Market direction Re: [CANSLIM] Market direction [CANSLIM] Wild Ride! ---------------------------------------------------------------------- Date: Mon, 3 Apr 2000 21:42:07 +0100 From: "Marc Laniado" Subject: [CANSLIM] GES GES broke out of a cup and handle and pulled back into the buy range today - take a look! Textile apparel group EPS 72 RS 91 SMR A A/D A Timeliness B Funds 17% Fundamentals aren't as good as GIL - - ------------------------------ Date: Mon, 03 Apr 2000 22:04:18 +0200 From: Werner Vandewiele Subject: Re: [CANSLIM] NASDAQ behaviour Dow +300. At 12:10 PM 03-04-00 -0700, you wrote: >Nasdaq losing almost 300 points yet on low volume -- how should we read >that? > >Question: > >70+ Billion came into the market in Feb/Mar. Where the heck is it going? > >Regards, >Shah > > >- Regards, <<< Werner Vandewiele >>> - - ------------------------------ Date: Mon, 03 Apr 2000 16:01:22 -0600 From: Earl Setser Subject: [CANSLIM] Well, Now What Oh Sages of CANSLIM? So much for Friday's rally on the NAS. Today's action ran me out of my last 2 holdings. QCOM held up for a while, but couldn't take the late selling while NT had looked weaker, so I put a stop in that took me out early in the day. Any talk of a FT day after Friday's rally is dead after today's action. I'm 100% cash in my CANSLIM acct, and my fingers are a little crispy (as in burnt) from my last quick foray into the market. IBD has pointed out that we needed to look for a follow-through day AND leading stocks breaking out of solid bases. This last FT day looked good except few leading stocks had any significant bases at all! I'm going to go with Tom and try to be more cautious when jumping in this next time. In Saturday's IBD, they pointed out that the leading Industry Groups often change after a market correction. The example they used listed the top groups for the last 4 bull markets, based on the number of new highs on the FT day. In their example the banks and financial markets led in the first few, and tech clearly led in the Oct 99 rally. Do you guys use this indicator as the way to pick the new leaders? I have been concentrating on the top 20 IGPS. I believe this makes perfect sense once the trends are established by a runup, but I'm not sure this is the best approach at the very beginning of a rally. Some people seem to look at relative movement on the IGP listing. Is that what you guys think is best? I've looked at a few notable moves in IGP ranking during the last 3 months. Note that I only looked at groups that are now ranked "A". I looked for movements of 10 or so positions in the top groups, and 30+ positions for the lower groups. Does this make sense? - - ------------------------------ Date: Mon, 3 Apr 2000 16:15:34 -0400 From: "Matt Robinson" Subject: Re: [CANSLIM] NASDAQ behaviour I wouldn't focus on the volume being less than its been the last few days. Yea, I think this is positive, but things do not look good. Support in the 4350-4400 range broke. It appeared that the Naz paused at 4300, but then boom. Obviously, Microsoft is a significant factor in the drop. The high flyers of the internet sector got ripped as well (B2B, B2C, and some of the infrastructure). The Russell held up better than the Nasdaq, but not great. Where is the money going? Check out anything on the NYSE? Regards Matt - ----- Original Message ----- From: Pritish Shah To: Sent: Monday, April 03, 2000 3:10 PM Subject: [CANSLIM] NASDAQ behaviour > > Nasdaq losing almost 300 points yet on low volume -- how should we read > that? > > Question: > > 70+ Billion came into the market in Feb/Mar. Where the heck is it going? > > Regards, > Shah > > > - > __________________________________________________ Do You Yahoo!? Talk to your friends online with Yahoo! Messenger. http://im.yahoo.com - - ------------------------------ Date: Mon, 3 Apr 2000 23:42:42 -0400 From: "Tom Worley" Subject: [CANSLIM] When I'm way wrong, I try to admit it! OK, OK, obviously Thursday wasn't the shakeout day on Naz like I thought. Back to the drawing boards for further study. And besides, AAARRRRRGGGG!!!!, three buy limits and none of them got done! I've already challenged Schwab on one that should have been executed as far as I can tell, will be interesting to read their wimpy answer. But one was up 19.7% (VLAB, small cap, even smaller price). Drat! Nice base, will have to study to see if I chase it or wait. Probably wait in this market, and look for another nice base. And those are few and far between. Guess that's the price I'll have to pay for trying to steal it. Still, somewhat comforting that I can still find some nice ones in this mess. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - - ------------------------------ Date: Mon, 3 Apr 2000 23:55:29 EDT From: DODGERB@aol.com Subject: [CANSLIM] JDSU Cup and Handle Check this one out. Company will announce "IMPORTANT" announcement tomorrow. If CANSLIM is right. It should be a good new. What do guy think? Thanks Piti - - ------------------------------ Date: Mon, 3 Apr 2000 23:51:03 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re:AMK Considering it's a small cap, with a float of only 1.4 mio shares, I likely would have tried to steal it while still in the base of 35 and change. On the volume today, if I really wanted it, I wouldn't have hesitated at 36 and change as it beat Friday's close. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - ----- Original Message ----- From: To: Sent: Monday, April 03, 2000 9:56 AM Subject: Re: [CANSLIM] Re:AMK Hi! AMK's volume is already at 2/3rd of ave volume. What do you consider to be the correct pivot point? AMK looks pretty good from a CANSLIM fundie standpoint. It was featured on the Internet and Technology page in Monday's IBD (and maybe that's where you saw it!) Numbers are 95/95/ABB and it's in the Elec-Misc Components group, presently ranked number 13. From a technical standpoint, it's been basing for about 6 weeks since hitting a high in mid-Feb, and has been above the closing low for about 6 days, hence it could be working on the right side of a cup. This is a good one to watch for a possible B/O given another FT day on the NAS. At 10:09 AM 4/1/00 -0800, you wrote: >Interesting how things change from one person to the next. > >I have a new stock for our watch list. Check on AMK. Let me know what you >think. >Thanks for all the other info. > >Susan >-----Original Message----- >From: Catherine M. Wilson >To: canslim@lists.xmission.com >Date: Saturday, April 01, 2000 8:58 AM >Subject: Re: [CANSLIM] Re: > > >>Patrick Wahl wrote: >> >>> I didn't see this, but someone else told me some Nobel Prize >>> winning economist from MIT was on CNBC yesterday, and he said >>> there is no question we are in a speculative bubble regarding tech >>> stocks, and those things always end badly. Its the old greater fool >>> theory, but when that thinking changes, people will be quick to >>> unload their stocks at any price. This is all second hand, so I may >>> be misquoting a bit here. >> >>I saw the interview, and my perception was that he >>was talking about Internet stocks with enormous >>valuations and no earnings--the stocks that have >>doubled and tripled over the last 3 to 6 months. >>I think, however, that many people wouldn't have >>picked up that he was talking about this particular >>group of stocks. I've heard his remarks reported >>on CNBC as referring to all Internet-related stocks, >>and, as Patrick says above, people will tend to >>generalize his remarks to all tech stocks, which >>isn't what he was talking about at all. >> >>Kit >> >>- >> >> > > >- > > > - - - - - - ------------------------------ Date: Tue, 4 Apr 2000 00:03:57 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] NASDAQ behaviour There are a few of us "old duffers" still left that still consider 1.7 billion shares as something more than "low volume", esp when it's actually pretty heavy compared to the past two weeks of volatile action. On a more pertinent point, we really needed a follow thru day of any kind of volume, not one that undercut the short base of mid Feb. Granted, the news on MSFT probably was the greatest influence rather than technical performance, but still damage was done today. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - ----- Original Message ----- From: Pritish Shah To: Sent: Monday, April 03, 2000 3:10 PM Subject: [CANSLIM] NASDAQ behaviour Nasdaq losing almost 300 points yet on low volume -- how should we read that? Question: 70+ Billion came into the market in Feb/Mar. Where the heck is it going? Regards, Shah - - - - ------------------------------ Date: Mon, 03 Apr 2000 22:30:53 -0600 From: Earl Setser Subject: Re: [CANSLIM] JDSU Cup and Handle Why do you think CANSLIM indicates this would be good news??? I don't remember WON guessing at future announcements at all!! At 11:55 PM 4/3/00 EDT, you wrote: >Check this one out. Company will announce "IMPORTANT" announcement tomorrow. >If CANSLIM is right. It should be a good new. What do guy think? > >Thanks >Piti > >- > > > - - ------------------------------ Date: Tue, 4 Apr 2000 00:31:08 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] JDSU Cup and Handle Sorry, Piti, but I don't see anything that says "CANSLIM buy" on this chart right now. Rather, I see a stock in decline/retreat, with a very high PE (over 400 right now, even 200 forward looking), which are the ones mostly taking this beating. Today's drop percentage wise is even greater than Nasdaq's, and that's a lot. I definitely don't see any cup and handle on this. And with some of the recent bad news, it has that to overcome as well. I certainly would not be buying anything in this market solely on news anticipation, or even released news. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - ----- Original Message ----- From: To: Sent: Monday, April 03, 2000 11:55 PM Subject: [CANSLIM] JDSU Cup and Handle Check this one out. Company will announce "IMPORTANT" announcement tomorrow. If CANSLIM is right. It should be a good new. What do guy think? Thanks Piti - - - - ------------------------------ Date: Mon, 3 Apr 2000 21:50:11 -0700 From: "Bill Triffet" Subject: Re: [CANSLIM] JDSU - in this market??? I would call that trading on news or "speculating". I might use it as a point to sell an issue or buy IF it has a proper base ( JDSU looks a bit steep in the price decent). Perhaps you should consider the general market indicators - lots of cash going out of techs into the "older economy" stocks. If I was putting any cash into the market right now, it would not be techs - at least not yet. This could all change rather quickly so never say never. Wait for a follow-thru day and try to find something with a base. Remember, If you hold cash while the general market is going down - it's kind of like making money. That's how I get through my bear periods. (g) - -Bill - ----- Original Message ----- From: To: Sent: Monday, April 03, 2000 8:55 PM Subject: [CANSLIM] JDSU Cup and Handle > Check this one out. Company will announce "IMPORTANT" announcement tomorrow. > If CANSLIM is right. It should be a good new. What do guy think? > > Thanks > Piti > > - > > - - ------------------------------ Date: Tue, 04 Apr 2000 00:59:04 -0400 From: Brian Bellamy Subject: [CANSLIM] Intro Brian Bellamy Hello all, I've been lurking and learning for a year or two now. Thanks to this forum I have become much more profitable in my investing over the past year. Of course, the huge run of the NASDQ helped. I will attempt to begin contributing as I have thoughts. I am now watching several stocks hoping that they will form nice, long, tight bases during this tech correction. I see XLNX, AMCC, BBRC, CMGI, DITC, JDSU, ORCL, PRLX, QCOM, SDLI, SNDK, SMTC, and WORK (really) as my strongest candidates for future buys when they are done consolidating. Also, did anyone buy or consider buying AMK on the breakout on 4/3/00. Any comments, additions, or subtractions, to/from this watch list would be appreciated. Yours truly, Brian Bellamy - - ------------------------------ Date: Tue, 4 Apr 2000 01:10:03 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Intro Brian Bellamy Welcome to the group, Brian, This is a good time to be "watching"! Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - ----- Original Message ----- From: Brian Bellamy To: Sent: Tuesday, April 04, 2000 12:59 AM Subject: [CANSLIM] Intro Brian Bellamy Hello all, I've been lurking and learning for a year or two now. Thanks to this forum I have become much more profitable in my investing over the past year. Of course, the huge run of the NASDQ helped. I will attempt to begin contributing as I have thoughts. I am now watching several stocks hoping that they will form nice, long, tight bases during this tech correction. I see XLNX, AMCC, BBRC, CMGI, DITC, JDSU, ORCL, PRLX, QCOM, SDLI, SNDK, SMTC, and WORK (really) as my strongest candidates for future buys when they are done consolidating. Also, did anyone buy or consider buying AMK on the breakout on 4/3/00. Any comments, additions, or subtractions, to/from this watch list would be appreciated. Yours truly, Brian Bellamy - - - - ------------------------------ Date: Tue, 04 Apr 2000 09:10:47 -0600 From: Earl Setser Subject: Re: [CANSLIM] Intro Brian Bellamy Well, you have a nice list with many of the recent leaders included. I think I've been watching most of the stocks on your list to some extent except for CMGI and WORK. CMGI is a stock I profited on some time back (pre-CANSLIM), but it only has a 12 EPS rating, so it doesn't pass on this test. WORK on the other hand has nice CANSLIM numbers at 99/85/CAB. I haven't seen it since I only look at A ranked Industry Groups, but it looks good otherwise. The group it's in is Commercial Services-Printing. This group is ranked 93, but seems to be moving down (was 68 6 months ago). What is your CANSLIM reasoning on these two stocks? At 12:59 AM 4/4/00 -0400, you wrote: >Hello all, I've been lurking and learning for a year or two now. Thanks >to this forum I have become much more profitable in my investing over >the past year. Of course, the huge run of the NASDQ helped. I will >attempt to begin contributing as I have thoughts. I am now watching >several stocks hoping that they will form nice, long, tight bases during >this tech correction. I see XLNX, AMCC, BBRC, CMGI, DITC, JDSU, ORCL, >PRLX, QCOM, SDLI, SNDK, SMTC, and WORK (really) as my strongest >candidates for future buys when they are done consolidating. Also, did >anyone buy or consider buying AMK on the breakout on 4/3/00. Any >comments, additions, or subtractions, to/from this watch list would be >appreciated. > >Yours truly, >Brian Bellamy > > >- > > > - - ------------------------------ Date: Tue, 04 Apr 2000 11:05:30 -0700 From: han.26@osu.edu Subject: [CANSLIM] Market direction I should be paranoid, especially since I'm 100% invested during a heavy correction, however, my two stocks, DSPG& CSCO, are still above my purchase points of [DSPG=]53 & [CSCO=]65. Since both HAD catapaulted up more than 20% after my purchase (BEFORE the correction), I am taking WON's advice to hold onto them at least for the full 8 weeks (bought on 2/28 & 3/13)--unless, of course, they fall to 8% below the purchase price. Considering the rapidity of the NAZ drop, I'm surprised how RELATIVELY well [yes, they're still taking hits, just not as bad as the overall NAZ] DSPG& CSCO are holding up. It makes me think these are very strong stocks, BUT I'm not sure how long they can continue to resist the NAZ's downward pull. Will they be able to remain above the mandatory sell point? Is anyone else still fully NASDAQ invested, or has the Market forced everyone into cash or NYSE stocks? Jim--- - - ------------------------------ Date: Tue, 04 Apr 2000 09:14:10 -0600 From: Earl Setser Subject: Re: [CANSLIM] Market direction If memory serves, WON also said that once a stock has moved higher, never let it turn back for a loss. I generally try to set a mental stop just above the purchase price for any stock that has closed up 15% or more. I think WON's approach on these two would be to try to sell just above the buy price if they retrace all of the gains. At 11:05 AM 4/4/00 -0700, you wrote: >I should be paranoid, especially since I'm 100% invested during a heavy correction, however, my two stocks, DSPG& CSCO, are still above my purchase points of [DSPG=]53 & [CSCO=]65. Since both HAD catapaulted up more than 20% after my purchase (BEFORE the correction), I am taking WON's advice to hold onto them at least for the full 8 weeks (bought on 2/28 & 3/13)--unless, >of course, they fall to 8% below the purchase price. > >Considering the rapidity of the NAZ drop, I'm surprised how RELATIVELY well [yes, they're still taking hits, just not as bad as the overall NAZ] DSPG& CSCO are holding up. It makes me think these are very strong stocks, BUT I'm not sure how long they can continue to resist the NAZ's downward pull. Will they be able to remain above the mandatory sell point? > >Is anyone else still fully NASDAQ invested, or has the Market forced everyone into cash or NYSE stocks? > >Jim--- > > > >- > > > - - ------------------------------ Date: Tue, 04 Apr 2000 08:28:03 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Intro Brian Bellamy On 09:59 PM 4/3/00 , Brian Bellamy Said: >Also, did >anyone buy or consider buying AMK on the breakout on 4/3/00. Any >comments, additions, or subtractions, to/from this watch list would be >appreciated. > >Yours truly, >Brian Bellamy Yes. Didn't do it - no M. Why fight the market? Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 4 Apr 2000 10:12:12 -0600 From: "Wahl, Patrick" Subject: [CANSLIM] wow I don't really have anything to say, just that I looked at the nasdaq a few minutes ago and it was down 190, it is now down 322, its very odd that investors perceptions can change so fast, so that what looked like a reasonable investment (a tech stock) a few weeks ago now looks like something to be avoided. I guess the bright side is we can start to look for some bases to form. Guess the market can't drop 7% everyday for too long. - - ------------------------------ Date: Tue, 4 Apr 2000 11:32:38 -0500 From: "Charles Dille" Subject: Re: [CANSLIM] wow 100 Divided By 7 = About 14 More Days. - ----- Original Message ----- From: Wahl, Patrick To: 'Canslim' Sent: Tuesday, April 04, 2000 11:12 AM Subject: [CANSLIM] wow > I don't really have anything to say, just that I looked at the nasdaq a few > minutes ago and it was down 190, it is now down 322, its very odd that > investors perceptions can change so fast, so that what looked like a > reasonable investment (a tech stock) a few weeks ago now looks like > something to be avoided. I guess the bright side is we can start to look > for some bases to form. Guess the market can't drop 7% everyday for too > long. > > - > > - - ------------------------------ Date: Tue, 04 Apr 2000 09:43:57 -0700 From: Tim Fisher Subject: Re: [CANSLIM] wow It was already down 17% as of yesterday's close. That leaves less than 12 days. On 09:32 AM 4/4/00 , Charles Dille Said: >100 Divided By 7 = About 14 More Days. >----- Original Message ----- >From: Wahl, Patrick >To: 'Canslim' >Sent: Tuesday, April 04, 2000 11:12 AM >Subject: [CANSLIM] wow > > > > I don't really have anything to say, just that I looked at the nasdaq a >few > > minutes ago and it was down 190, it is now down 322, its very odd that > > investors perceptions can change so fast, so that what looked like a > > reasonable investment (a tech stock) a few weeks ago now looks like > > something to be avoided. I guess the bright side is we can start to look > > for some bases to form. Guess the market can't drop 7% everyday for too > > long. > > > > - > > > > > > >- Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 4 Apr 2000 11:48:55 -0500 From: "Charles Dille" Subject: Re: [CANSLIM] wow At this rate I give it only about 5 more days and my investements will equal ZERO just like the NAZ - ----- Original Message ----- From: Tim Fisher To: Sent: Tuesday, April 04, 2000 11:43 AM Subject: Re: [CANSLIM] wow > It was already down 17% as of yesterday's close. That leaves less than 12 days. > > On 09:32 AM 4/4/00 , Charles Dille Said: > >100 Divided By 7 = About 14 More Days. > >----- Original Message ----- > >From: Wahl, Patrick > >To: 'Canslim' > >Sent: Tuesday, April 04, 2000 11:12 AM > >Subject: [CANSLIM] wow > > > > > > > I don't really have anything to say, just that I looked at the nasdaq a > >few > > > minutes ago and it was down 190, it is now down 322, its very odd that > > > investors perceptions can change so fast, so that what looked like a > > > reasonable investment (a tech stock) a few weeks ago now looks like > > > something to be avoided. I guess the bright side is we can start to look > > > for some bases to form. Guess the market can't drop 7% everyday for too > > > long. > > > > > > - > > > > > > > > > > > >- > > Tim Fisher > Ore-Rock-On and Pacific Fishery Biologists WWW Sites > > Tim@OreRockOn.com > WWW: http://OreRockOn.com > See naked fish and rocks! > > > - > > - - ------------------------------ Date: Tue, 04 Apr 2000 09:01:34 -0700 From: Subject: Re: [CANSLIM] Market direction Generally I have been forced into cash, although as I was watching the NAZ getting whacked, I decided to look at the NYSE to see what I could come up with...came up with PFE and decided to nibble. IBD numbers are 94 57 AAA (the RS of 57 is low but has been rising rapidly...was 49 one day earlier)...stock had a B/O from a double bottom yesterday on good volume and it continues today. I figure the pivot to be around 38 1/8 with the 5% extended price at 40. BOT at 39 1/2. Not sure if this is kosher CANSLIM with RS being low, but it is a nice looking double bottom and B/O. Regards, Ziggy > at 11:05 on 4/4/00 you wrote snip > , > >Is anyone else still fully NASDAQ invested, or has the Market forced > everyone into cash or NYSE stocks? > > > >Jim--- > > > > > > > >- > > > > > > > > - - - ------------------------------ Date: Tue, 04 Apr 2000 10:21:23 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Market direction Breakout to what, exactly? 40 is still 10 pts under the old high... On 09:01 AM 4/4/00 , wroblewski@uswest.net Said: >Generally I have been forced into cash, although as I was watching the NAZ >getting whacked, I decided to look at the NYSE to see what I could come up >with...came up with PFE and decided to nibble. IBD numbers are 94 57 AAA >(the RS >of 57 is low but has been rising rapidly...was 49 one day earlier)...stock >had a >B/O from a double bottom yesterday on good volume and it continues today. >I figure the pivot to be around 38 1/8 with the 5% extended price at 40. >BOT at >39 1/2. Not sure if this is kosher CANSLIM with RS being low, but it is a nice >looking double bottom and B/O. > >Regards, >Ziggy > > > at 11:05 on 4/4/00 you wrote > >snip > > > , > > >Is anyone else still fully NASDAQ invested, or has the Market forced > > everyone into cash or NYSE stocks? > > > > > >Jim--- > > > > > > > > > > > >- > > > > > > > > > > > > > - > > >- Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 04 Apr 2000 12:43:04 -0600 From: Earl Setser Subject: Re: [CANSLIM] Market direction It looks to me like a cup and handle B/O. The problem is that the handle formed below the mid-point of the cup. I think it's the low of the handle (or maybe it was the middle), that needs to be above the middle of the cup. I make the middle of the cup at about 40 (high 50, low 30). Given this, I would say the handle is a little low. I bought APEX late last year and watched in form a handle, go up, another handle, go up, etc for about 4 or 5 times total before hitting it's new high. The advantage is a handle gets you in earlier than a new high. The problem with lower handles is that the level of overhead resistance increases as the handles gets lower in the cup, and I would guess this leads to more failures. (My opinion only except for the middle of the cup part.) At 10:21 AM 4/4/00 -0700, you wrote: >Breakout to what, exactly? 40 is still 10 pts under the old high... > >On 09:01 AM 4/4/00 , wroblewski@uswest.net Said: >>Generally I have been forced into cash, although as I was watching the NAZ >>getting whacked, I decided to look at the NYSE to see what I could come up >>with...came up with PFE and decided to nibble. IBD numbers are 94 57 AAA >>(the RS >>of 57 is low but has been rising rapidly...was 49 one day earlier)...stock >>had a >>B/O from a double bottom yesterday on good volume and it continues today. >>I figure the pivot to be around 38 1/8 with the 5% extended price at 40. >>BOT at >>39 1/2. Not sure if this is kosher CANSLIM with RS being low, but it is a nice >>looking double bottom and B/O. >> >>Regards, >>Ziggy >> >> > at 11:05 on 4/4/00 you wrote >> >>snip >> >> > , >> > >Is anyone else still fully NASDAQ invested, or has the Market forced >> > everyone into cash or NYSE stocks? >> > > >> > >Jim--- >> > > >> > > >> > > >> > >- >> > > >> > > >> > > >> > >> > - >> >> >>- > >Tim Fisher >Ore-Rock-On and Pacific Fishery Biologists WWW Sites > >Tim@OreRockOn.com >WWW: http://OreRockOn.com >See naked fish and rocks! > > >- > > > - - ------------------------------ Date: Tue, 04 Apr 2000 11:54:48 -0700 From: Subject: Re: [CANSLIM] Market direction My understanding of WON's writings is: A stock does not have to be at an old high to be considered a B/O from a valid base...depending on the base, it is the high of the handle in the cup with handle...in the flat base it is a B/O from the high of that flat base...and, in a double bottom pattern, it is a B/O above the center of the "W" on volume. On page 53 of WON's "24 Essential Lessons For Investment Success", WON shows a double bottom where the left hand side of the "W" is approximately 25 1/2 and he calls the correct pivot point buy B/O at around 22 (about 16% below the previous high). On page 58 of "24 ELFIS", he shows how to spot a sound base (his words) showing PeopleSoft as an example...the "proper cup with handle" is shown where the previous high price of the stock was about 21 and he shows the B/O "correct buy point in this base is $18 1/2" (about 13% below the previous high). WON says "The optimal buy point of any stock is its 'pivot point,' the point at the end of a basing area when the stock price is breaking out into new high ground." I know he mentions "new high ground" several times in his writings, but when he shows examples it is clear to me that he is referring to a new high at the end of a proper base (with "end" being the keyword). So, I'm not sure your focusing of some "old high" is right....but I have to admit it is confusing reading the words "new high" so much and then seeing examples of proper bases and B/O's being less than a new high. IMHO Ziggy Tim Fisher wrote: > Breakout to what, exactly? 40 is still 10 pts under the old high... > > On 09:01 AM 4/4/00 , wroblewski@uswest.net Said: > >Generally I have been forced into cash, although as I was watching the NAZ > >getting whacked, I decided to look at the NYSE to see what I could come up > >with...came up with PFE and decided to nibble. IBD numbers are 94 57 AAA > >(the RS > >of 57 is low but has been rising rapidly...was 49 one day earlier)...stock > >had a > >B/O from a double bottom yesterday on good volume and it continues today. > >I figure the pivot to be around 38 1/8 with the 5% extended price at 40. > >BOT at > >39 1/2. Not sure if this is kosher CANSLIM with RS being low, but it is a nice > >looking double bottom and B/O. > > > >Regards, > >Ziggy > > > > > at 11:05 on 4/4/00 you wrote > > > >snip > > > > > , > > > >Is anyone else still fully NASDAQ invested, or has the Market forced > > > everyone into cash or NYSE stocks? > > > > > > > >Jim--- > > > > > > > > > > > > > > > >- > > > > > > > > > > > > > > > > > > - > > > > > >- > > Tim Fisher > Ore-Rock-On and Pacific Fishery Biologists WWW Sites > > Tim@OreRockOn.com > WWW: http://OreRockOn.com > See naked fish and rocks! > > - - - ------------------------------ Date: Tue, 04 Apr 2000 17:14:35 -0700 From: han.26@osu.edu Subject: [CANSLIM] Wild Ride! DSPG had a 40% variation intraday! Using the 8% loss rule INTRADAY and not waiting until closing, I'd have lost almost the full 40%. Because it was held until close, however, the stock not only retraced it's loss, but [net] gained 10.54% on the day. I've only been in the market since1997; that is by far the most manic-depressive activity I've ever witnessed. - - ------------------------------ End of canslim-digest V2 #865 ***************************** 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.