From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1089 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 Monday, January 15 2001 Volume 02 : Number 1089 In this issue: Re: [CANSLIM] Introduction and M? Re: [CANSLIM] MDC RE: [CANSLIM] SHFL [CANSLIM] DGO List Re: [CANSLIM] MDC [CANSLIM] New Highs - NYSE RE: [CANSLIM] Credit Spreads [CANSLIM] Market Bottom [CANSLIM] new member ---------------------------------------------------------------------- Date: Sat, 13 Jan 2001 17:19:38 -0500 From: "Charles Layne" Subject: Re: [CANSLIM] Introduction and M? - ----- Original Message ----- From: "Behdad Forghani" To: Sent: Saturday, January 13, 2001 4:20 PM Subject: Re: [CANSLIM] Introduction and M? > Feds are going to cut interest rates further. Even if it happens later than > sooner. I guess I am not alone to believe that Interest rate cut is most > reliable indicator of the market direction. As we all know: "Don't fight the Fed" "The trend is your friend" -- unfortunately, not much in the way of trend right now. Chuck Layne - - ------------------------------ Date: 13 Jan 2001 15:55:21 -0800 From: "Tim Fisher" Subject: Re: [CANSLIM] MDC I see no reason to sell. I am holding it also since 33. I may sell 1/2 when I am up 20-25%, but my stop right now is a bit above my buy-in. Also holding onto TOL, LEN, RYL, NVR. In fact I am only in 2 non-homebuilders a at the moment, having been stopped out of my banks. At 04:39 PM 1/13/2001 -0500, you wrote: >Let's see if I can get a little help from my friends... > >Even though Mr. O'Neill says to stay out of the market during the bear, I >jumped in anyway. I climbed onto MDC (MDC Holdings) at 29 3/4 and have seen >it blow away its former high. At least one bright spot in my sometimes >dismal array of selections. Of course it doesn't hurt being in the number >one sector for the time being. > >This past week, MDC has been propelled further on indication of higher than >expected earnings. Up volume has been heavy. > >Now, what should I be looking at? Has it gone too far too fast or will it >hang in there in light of current economy and future expected rate cuts? (I >know, no one can predict - just looking for indications). Any other hints? >Thanks! > > >Chuck Layne > > > >- Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information mailto:tim@OreRockOn.com WWW http://OreRockOn.com - - ------------------------------ Date: Sat, 13 Jan 2001 22:58:48 -0500 From: Surindra Subject: RE: [CANSLIM] SHFL well, all the gambling (leisure-gaming) stocks are breaking out and the sector seems to be doing well. good canslim numbers, good earnings (p/e) if that matters at all... look at CSDS, IGT, ALLY, MNTG, SLOT etc. If you want to gamble, this is the group... regards surindra - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Dave Massaglia Sent: Friday, January 12, 2001 4:48 PM To: canslim@lists.xmission.com Subject: [CANSLIM] SHFL SHFL has broken out nicely in the last few days. The 3 for 2 split may have something to do with this stock's recent performance. This is one company that is reporting some profits. >This is what I like about the action, most people are not so optimistic >any more. They don't want to jump on the first signs of strength. Good >follow through days should be difficult to beleive. Obviously, there are >not many CANSLIM setups right now, but time will tell. Although >personally I am still very bearish on US stocks long term, regarding the >intermediate term it seems to me that the market's language has changed, >and has been much more encouriging lately. > >Tamas > > > From: "Tim Fisher" > > Subject: Re: [CANSLIM] FT > > Date: 11 Jan 2001 05:38:52 -0800 > > > > It did not even make it back to where it closed on the day it made the >low > > and gained 300 pts. This may meet the technical follow-through day >criteria > > but it is not a follow-through for me until it takes out that 2625-ish >top > > last week. > > > > >- > _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com - - - - ------------------------------ Date: Sun, 14 Jan 2001 09:46:37 -0500 From: "Tom Worley" Subject: [CANSLIM] DGO List The list declined sharply this week, down to 185 stocks on the overall list from 271 the prior Friday. The survivors list below is disappointingly short, mostly because of prior breakouts, or too short a base to even mention. There were very few tech stocks on the list, which was dominated by home builders and banks. APOL - B3+ SWBT - B2+ IGT - B2+ RMD - B3 GCO - B2 ORLY - B2, wedging, sharp vol decline BPFH - B2 BYS - B5 WBB - B2+ ESL - B2 HTLD - B5 MFSF - B5 MSCC - nice double bottom breaking into new highs CBT - B8+ BLL - B2+, some declines in revenues E - B2 BJ - B2+ ABM - B5 COLB - B2+ NCBC - B5 SIB - B3 CRT - B3+ SSP - B2 JOE - B3 Tom Worley stkguru@netside.net ICQ # 5568838 - - ------------------------------ Date: Sun, 14 Jan 2001 10:37:32 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] MDC Hi Charles, As I mentioned in my DGO List this morning, new home construction remains strong with many stocks in the group showing up on the overall list. With the recent interest rate cut, and expected future rate cuts, I would expect this sector to remain on top. Frankly I was impressed at how new home sales and new home permits remained so strong during the sequential rate hikes by the Feds over the past 18 months. There clearly appears to be a continuing demand for new homes (which is also a major factor in fueling consumer spending) and this appears to be continuing even with a slow down in the economy to a more sustainable level. With lower interest rates, I would expect more activity by home construction firms on speculation of future sales, as well as more demand for both new and existing homes. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Charles Layne To: Sent: Saturday, January 13, 2001 4:39 PM Subject: [CANSLIM] MDC Let's see if I can get a little help from my friends... Even though Mr. O'Neill says to stay out of the market during the bear, I jumped in anyway. I climbed onto MDC (MDC Holdings) at 29 3/4 and have seen it blow away its former high. At least one bright spot in my sometimes dismal array of selections. Of course it doesn't hurt being in the number one sector for the time being. This past week, MDC has been propelled further on indication of higher than expected earnings. Up volume has been heavy. Now, what should I be looking at? Has it gone too far too fast or will it hang in there in light of current economy and future expected rate cuts? (I know, no one can predict - just looking for indications). Any other hints? Thanks! Chuck Layne - - - - ------------------------------ Date: Sun, 14 Jan 2001 10:58:54 -0500 From: "Tom Worley" Subject: [CANSLIM] New Highs - NYSE Anyone using the raw statistics of new highs on the NYSE should be careful in the application. I have seen in the past several weeks an unusually high number of closed end funds (esp tax free, but covering most every sector) showing up on this list, distorting the overall numbers. Tom Worley stkguru@netside.net ICQ # 5568838 - - ------------------------------ Date: Sun, 14 Jan 2001 11:39:52 -0500 From: Rakesh Sanghvi Subject: RE: [CANSLIM] Credit Spreads "Another Reason for Cheer: enhanced credit spreads.=20 The difference in yields between corporate and government bonds is an oft-used gauge of market sentiment. If corporate-debt securities yield significantly higher interest than safe-harbor US government issues, it sends a signal that investors are uncomfortable with the current = prospects for earnings.=20 The credit spread widened consistently throughout 2000, for example, as = the prospects for many companies (especially those in technology-related sectors) appeared blas=E9.=20 Credit spreads seemed to turn the corner in the last few days of = December, and have improved markedly so far this month. This signals that = investors have become increasingly confident that the reduction in corporate = earnings is mainly seen through the rear mirror.=20 Most of this sentiment change, of course, is due to the Fed's newfound willingness to cut interest rates.=20 Thicker Spreads Taste Better to Traders Why is improving credit spreads so important to stock traders? Most short-term trading systems depend on price momentum (which is the = tendency for stocks on the move to continue higher) for profitability. But in = order for momentum to generate acceptable returns, economic growth must be = strong enough to support higher stock prices=20 The economic indicator most commonly associated with momentum is a = narrowing credit spread, since it signals the increased comfort of investors to = set aside less risky government bonds in favor of more risky corporate = debt.=20 The relationship between narrowing credit spreads and stock-price = momentum is well-documented, with several studies confirming that you can't have = the latter without the former.=20 We will closely monitor the difference between government and = corporate-debt securities. If credit spreads continue improving, traders would do well = to dust off their trading systems from two years ago in the search for = next hot momentum stock. " - --Ben Warwick Thought you folks might find this interesting. Have a great weekend! - -----Original Message----- From: Tom Worley To: CANSLIM Sent: 1/14/01 10:58 AM Subject: [CANSLIM] New Highs - NYSE Anyone using the raw statistics of new highs on the NYSE should be careful in the application. I have seen in the past several weeks an unusually high number of closed end funds (esp tax free, but covering most every sector) showing up on this list, distorting the overall numbers. Tom Worley stkguru@netside.net ICQ # 5568838 - - - - ------------------------------ Date: Sun, 14 Jan 2001 15:13:47 -0600 From: Kent Norman Subject: [CANSLIM] Market Bottom I heard on the radio today that there have been 21 interest rate cycles since 1913. Of those 21 cycles, the market bottom was marked by the FIRST rate drop 17 times. Of the remaining 4 cycles, the market bottom was marked by the SECOND rate drop 3 times. One year after the first cut, the market had appreciated an average of 20%. Also, the NASDAQ had never been more oversold (4 standard deviations from the norm) just before the first rate drop. Institutional cash on hand is at a 3 year high of 7%. They said the late afternoon buying is a good indicator of institutional trading. Happy hunting Kent Norman - - ------------------------------ Date: Mon, 15 Jan 2001 09:18:16 -0500 From: "Ann Hollingworth" Subject: [CANSLIM] new member Hi, I'm a new member to this listserv, too. I have been studying CANSLIM on a very part-time basis since last fall. Bought EMLX and APWR last fall (wrong timing) and naturally had to sell quickly. I was mostly in cash until last Thursday, when I bought LEN at 39.25. I can't be at the computer when the market is open, so have put in a Stop Loss at 36 1/8 and a Stop Limit at $40 (to pyramid in). How does this sound? Thank you all for being here. This is a great group! Ann H. - - ------------------------------ End of canslim-digest V2 #1089 ****************************** 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.