From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1453 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, June 7 2001 Volume 02 : Number 1453 In this issue: Re: [CANSLIM] Distribution Days Re: [CANSLIM] FDS [CANSLIM] Intro:Ernie Hill Re: [CANSLIM] Intro:Ernie Hill Re: [CANSLIM] Intro:Ernie Hill Re: [CANSLIM] e trade Re: [CANSLIM] Intro:Ernie Hill Re: [CANSLIM] Intro:Ernie Hill [CANSLIM] Hard Stop Rules/Position Sizing Re: [CANSLIM] Distribution Days Re: [CANSLIM] FDS Re: [CANSLIM] Intro:Ernie Hill Re: [CANSLIM] e trade Re: [CANSLIM] upward wedging hangle.......was DGX Re: [CANSLIM] Hard Stop Rules/Position Sizing Re: [CANSLIM] Intro:Ernie Hill ---------------------------------------------------------------------- Date: Thu, 07 Jun 2001 18:34:22 -0600 From: esetser Subject: Re: [CANSLIM] Distribution Days First, here's a quick review from some WON material. From the 25 week course: "Four days of distribution (on a major market index), if correctly spotted over a two- or three-week period, almost always is enough to turn a previously advancing market into a decline. At this point, I will start looking for stocks that are giving indications they should be sold or trimmed back." And from IBD's Big Picture on 5/31: "Volume (NAS on 5/30) surged 23% to 1.98 billion shares, the first unequivocal day of distribution since 4/26. Still, in both sessions, volume was just slightly above average. If you count the 0.4% gain 5/22 as a day of churning-when a major index makes little upward price progress in heavier trade-then it's the third day of professional selling in six sessions. Early bull markets can survive intermittent bouts of heavy institutional selling before slogging their way higher. That was the case in both 10/90 and early 95, when the NAS took months before posting new highs. But a rash of four or five such days in a week or twosignals a rally in trouble." Given this data, and my own opinions, here's my take. 1- We should concentrate on the last 2-3 weeks timeframe. DDays previous to that aren't significant unless they already marked the top. 2- I would say that DDay on less than average volume should be considered carefully. If the volume is close, maybe within 5 or 10% of average, then I think they should still count. 3- I'm hesistant to call a day with much gain at all "churning". I would want to see a very big volume day with very little gain (0.2% maybe or less) before I call it churning. In IBD's example they said you might use the 0.4% day, but a 0.4% gain/day is 122% annualized!! 4- After a quick look at your ddays, they look good other than a few days where the volume was close to average. At 07:15 AM 6/7/01 -0400, you wrote: > I am probably over simplifying the issue, but trying to understand it >better, and pay a little more attention. So looking for some educating and >advice from those that understand the topic better. If I essentially >ignore completely down days where the volume was less than ADV, then I >find the following since April 1: NASDAQ - distribution 4/3, 4/26, 5/30 - >yesterday clearly by any definition is not distributional as volume failed >to beat the prior day, which was up. And 4/3, and possibly 4/26, seem too >old to be meaningful NYSE Composite - 4/24, 4/30, 5/2, 5/22 appear >distributional. Again yesterday was not due lighter volume DOW 30 - >4/11, 6/6 distributional Russell 2000 - 4/3, 5/30 distributional &P 500 >- 4/3, 4/4, 4/30, 5/22, 5/30 distributional The questions I have: Is >this approach too simplistic? Can I simply ignore down days where volume >is less than ADV? Is this summary essentially accurate? How far back in >time to you have to consider? What restarts the counting from zero? Tom >Worley >stkguru@netside.net >AIM: TexWorley > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 18:52:46 -0600 From: esetser Subject: Re: [CANSLIM] FDS I purchased the stock, and felt yesterday's action was okay, not great, but okay. Basically the stock went up quite a bit, and then came back to close lower for the day on very large volume. However, looking at the volume for the day, the move up was driven by large volume, and the drop was much lower. I guessed this was profit-taking. However, today's further drop below the pivot (if only a litte) is more disturbing. I would hope to see the stock firm back up above the pivot in the next day or two, and hopefully see the buying volume come back!! At 03:02 PM 6/7/01 -0700, you wrote: > > >Any comments about FDS, one of the 'stocks in the >news' in IBD this past week? > >I cannot account for the drop of the past two days >other than profit taking and I note that there is an >earnings announcement on June 12. > >__________________________________________________ >Do You Yahoo!? >Get personalized email addresses from Yahoo! Mail - only $35 >a year! http://personal.mail.yahoo.com/ > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 20:11:00 -0500 From: Ernie Hill Subject: [CANSLIM] Intro:Ernie Hill I live in Sugarland TX, I have been in and out of the stock market since 83. I traded commodity futures from 85-87. I made a lot of money, and lost even more. At the time I traded futures I lacked the discipline needed to succeed. Now I prefer just to invest in stocks. I have studied and used many different investing/trading techniques. I consider CANSLIM to be among the best ways to invest in stocks, and the best way for the average investor. I do disagree with WON on the 8% rule. This rule is fine for the professional investor, because he is able to watch stocks throughout the day and can "buy right" more often than can the average investor. Because of this the professional is afforded many more opportunities than is the average investor. If the professional gets stopped out of a good stock, he just looks to the next opportunity. The average investor is not able to pull the trigger and "buy right" very often, and therefor misses many opportunities. Having said all of that I prefer to use technical stops which will often keep me in a stock when an 8% stop would get me out. Properly placed stops give you risk adjusted protection against being whipsawed out of a stock only to see it go higher. While I often take on more than 8% risk (sometimes it is less than 8%) I do not get stopped out as often, and therefor I can take advantage of the few opportunities I get to "buy right". I also like to take entry points on some chart patterns WON does not mention in his book. If I have found a CANSLIMer that meets all of the criteria except chart pattern, I will look for other patterns that I know from experience can give me a low risk entry point. One in particular I like is when a stock begins to trend upward and the price touches the bottom of a Gann angle line. This entry point usually allows for a very tight stop, often less than 8%. I look forward to sharing my CANSLIMers with you, and learning from the expertise that you guys/gals have accumulated. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 21:17:48 EDT From: SKutney@aol.com Subject: Re: [CANSLIM] Intro:Ernie Hill - --part1_c6.16a824d8.285181bc_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Ernie, What is a Gann angle line? Steve Kutney - --part1_c6.16a824d8.285181bc_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Ernie,

 What is a Gann angle line?

Steve Kutney - --part1_c6.16a824d8.285181bc_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 20:21:12 -0500 From: "Dave Massaglia" Subject: Re: [CANSLIM] Intro:Ernie Hill you catch little fishies with it >From: SKutney@aol.com >Reply-To: canslim@lists.xmission.com >To: canslim@lists.xmission.com >Subject: Re: [CANSLIM] Intro:Ernie Hill >Date: Thu, 7 Jun 2001 21:17:48 EDT > >Ernie, > > What is a Gann angle line? > >Steve Kutney _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 21:38:31 EDT From: BIKEAR@aol.com Subject: Re: [CANSLIM] e trade - --part1_76.b72139f.28518697_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit thanks....I have always used a stop sell and not a stop limit...I will do a stop limit next time....janis - --part1_76.b72139f.28518697_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit thanks....I have always used a stop sell and not a stop limit...I will do a
stop limit next time....janis - --part1_76.b72139f.28518697_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 18:48:42 -0700 (PDT) From: Steve F Subject: Re: [CANSLIM] Intro:Ernie Hill Welcome to the group. This has been a terrific and profitable forum for me. I am a bit ashamed to say that I have received far more from the people here than I have given. I welcome your investing insights. Can you tell me more about the technical indicators that you mentioned. I also have some difficulty adhering to the 8% rule unless I spend the day at my computer and would like to hear more. Steve I --- Ernie Hill wrote: > I live in Sugarland TX, I have been in and out of > the stock market since > 83. I traded commodity futures from 85-87. I made a > lot of money, and > lost even more. At the time I traded futures I > lacked the discipline > needed to succeed. Now I prefer just to invest in > stocks. I have studied > and used many different investing/trading > techniques. I consider CANSLIM > to be among the best ways to invest in stocks, and > the best way for the > average investor. > > I do disagree with WON on the 8% rule. This rule is > fine for the > professional investor, because he is able to watch > stocks throughout the > day and can "buy right" more often than can the > average investor. > Because of this the professional is afforded many > more opportunities > than is the average investor. If the professional > gets stopped out of a > good stock, he just looks to the next opportunity. > The average investor > is not able to pull the trigger and "buy right" very > often, and therefor > misses many opportunities. > > Having said all of that I prefer to use technical > stops which will often > keep me in a stock when an 8% stop would get me out. > Properly placed > stops give you risk adjusted protection against > being whipsawed out of a > stock only to see it go higher. While I often take > on more than 8% risk > (sometimes it is less than 8%) I do not get stopped > out as often, and > therefor I can take advantage of the few > opportunities I get to "buy > right". > > I also like to take entry points on some chart > patterns WON does not > mention in his book. If I have found a CANSLIMer > that meets all of the > criteria except chart pattern, I will look for other > patterns that I > know from experience can give me a low risk entry > point. One in > particular I like is when a stock begins to trend > upward and the price > touches the bottom of a Gann angle line. This entry > point usually allows > for a very tight stop, often less than 8%. > > I look forward to sharing my CANSLIMers with you, > and learning from the > expertise that you guys/gals have accumulated. > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. __________________________________________________ Do You Yahoo!? Get personalized email addresses from Yahoo! Mail - only $35 a year! http://personal.mail.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 20:49:34 -0500 From: Ernie Hill Subject: Re: [CANSLIM] Intro:Ernie Hill Steve, W.D. Gann is a legend among stock market investors, much like Ralph Nelson Elliott. He used complex mathematical models to make his fortune in the stock market. One of his simpler tools are what he called angle lines. There are three primary lines he talked about they are the 0 degree angle line, the 45 degree angle line, and the 26.5 degree angle line. An angle line in Gann terminology is simply the channel lines of an up trend, down trend, or sideways movement. The degree of slope of the channel line determines what type of angle line it is. For W.D. Gann the three angles previously mentioned held significance depending on the rest of the price structure. SKutney@aol.com wrote: > Ernie, > > What is a Gann angle line? > > Steve Kutney - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 21:05:18 -0500 From: dsg Subject: [CANSLIM] Hard Stop Rules/Position Sizing In the discussion of how and where to place stops, several members have reported using technical conditions to place their stops, instead of some arbitrary (7-8% for CANSLIM) value. When you do this, do you adjust the size of the position you take to limit your down-side exposure? For instance, if you wanted your maximum risk on a trade to be 2% of your portfolio value, and the technical conditions required a stop 15% below your buy point, would you reduce the number of shares purchased to adhere to the 2% maximum loss rule? - -- Doug - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 22:16:33 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Distribution Days This is a multi-part message in MIME format. - ------=_NextPart_000_0068_01C0EF9F.82B34880 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Interesting that Los Angeles is the home of IBD and DG/DGO. But I am = sure they are not monitoring this group :)) Since we use a rule of up 1% or more on "higher" volume to define a = follow thru day, why don't we have to have a similar rule (e.g. down 1% = or more on "higher" volume) to define a distribution day?? I have a = problem counting it as distribution if the close is only a few tenths of = a percent different. Likewise, "higher" volume to me doesn't mean a few = hundred thousand shares on an index trading a billion or more shares. A = single order by a mutual fund or institutional holder could be that much = easily. "Higher" is just too vague. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Thursday, June 07, 2001 7:58 PM Subject: Re: [CANSLIM] Distribution Days Tom, et al, Here is the Ask Bill O'Neil question today from investors.com. What exactly is a distribution day in a market index? Is a = distribution day any day the market closes down on more volume than the = day before? Is it always a bad sign? =20 - Submitted from Los Angeles, Calif. =20 =20 Distribution in the stock market refers to the selling of stock = by large institutions. Distribution is indicated by one or more of the = major market indexes closing down on increased volume from the previous = day. Churning in the market indexes is also a sign of distribution. This = occurs when a day's attempted advance stalls (shows very little change = in price) on greater volume than the day before. Our studies have shown = that four or five days of distribution over a two- to three-week period = are often enough to turn a previously advancing market into decline. = Therefore, once you notice these signs of distribution, it is best to = hold off on any further stock purchases, and perhaps even cut back on = some of your positions, especially if you are on margin.=20 =20 =20 =20 norm=20 ----- Original Message -----=20 From: Tom Worley=20 To: CANSLIM=20 Sent: Thursday, June 07, 2001 6:15 AM Subject: [CANSLIM] Distribution Days I am probably over simplifying the issue, but trying to understand = it better, and pay a little more attention. So looking for some = educating and advice from those that understand the topic better. If I essentially ignore completely down days where the volume was = less than ADV, then I find the following since April 1: NASDAQ - distribution 4/3, 4/26, 5/30 - yesterday clearly by any = definition is not distributional as volume failed to beat the prior day, = which was up. And 4/3, and possibly 4/26, seem too old to be meaningful NYSE Composite - 4/24, 4/30, 5/2, 5/22 appear distributional. Again = yesterday was not due lighter volume DOW 30 - 4/11, 6/6 distributional Russell 2000 - 4/3, 5/30 distributional S&P 500 - 4/3, 4/4, 4/30, 5/22, 5/30 distributional The questions I have: Is this approach too simplistic? Can I simply ignore down days where = volume is less than ADV? Is this summary essentially accurate? How far back in time to you have to consider? What restarts the = counting from zero? Tom Worley stkguru@netside.net AIM: TexWorley - ------=_NextPart_000_0068_01C0EF9F.82B34880 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Interesting that Los Angeles is the home of IBD and = DG/DGO.=20 But I am sure they are not monitoring this group :))
 
Since we use a rule of up 1% or more on "higher" = volume to=20 define a follow thru day, why don't we have to have a similar rule (e.g. = down 1%=20 or more on "higher" volume) to define a distribution day?? I have a = problem=20 counting it as distribution if the close is only a few tenths of a = percent=20 different. Likewise, "higher" volume to me doesn't mean a few hundred = thousand=20 shares on an index trading a billion or more shares.  A single = order by a=20 mutual fund or institutional holder could be that much easily. "Higher" = is just=20 too vague.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Norman
To: canslim@lists.xmission.com =
Sent: Thursday, June 07, 2001 = 7:58=20 PM
Subject: Re: [CANSLIM] = Distribution=20 Days

Tom, et al,
 
Here is the Ask Bill O'Neil question today from = investors.com.
 
What = exactly is a=20 distribution day in a market index? Is a distribution day any = day the=20 market closes down on more volume than the day before? Is it = always a=20 bad sign?    
- Submitted from
Los=20 Angeles, Calif. 		 
 
Distribution in = the stock=20 market refers to the selling of stock by large institutions.=20 Distribution is indicated by one or more of the major market = indexes=20 closing down on increased volume from the previous day. Churning = in the=20 market indexes is also a sign of distribution. This occurs when = a day's=20 attempted advance stalls (shows very little change in price) on = greater=20 volume than the day before. Our studies have shown that four or = five=20 days of distribution over a two- to three-week period are often = enough=20 to turn a previously advancing market into decline. Therefore, = once you=20 notice these signs of distribution, it is best to hold off on = any=20 further stock purchases, and perhaps even cut back on some of = your=20 positions, especially if you are on margin.
 
 
 
norm
----- Original Message -----
From:=20 Tom=20 Worley
To: CANSLIM=20
Sent: Thursday, June 07, 2001 = 6:15=20 AM
Subject: [CANSLIM] = Distribution=20 Days

I am probably over simplifying the issue, but = trying to=20 understand it better, and pay a little more attention. So looking = for some=20 educating and advice from those that understand the topic=20 better.
 
If I essentially ignore completely down days = where the=20 volume was less than ADV, then I find the following since April=20 1:
 
NASDAQ - distribution 4/3, 4/26, 5/30 - = yesterday clearly=20 by any definition is not distributional as volume failed to beat the = prior=20 day, which was up. And 4/3, and possibly 4/26, seem too old to be=20 meaningful
 
NYSE Composite - 4/24, 4/30, 5/2, 5/22 appear=20 distributional. Again yesterday was not due lighter = volume
 
DOW 30 - 4/11, 6/6 distributional
 
Russell 2000 - 4/3, 5/30 = distributional
 
S&P 500 - 4/3, 4/4, 4/30, 5/22, 5/30=20 distributional
 
The questions I have:
 
Is this approach too simplistic? Can I simply = ignore down=20 days where volume is less than ADV?
 
Is this summary essentially = accurate?
 
How far back in time to you have to consider? = What=20 restarts the counting from zero?
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
- ------=_NextPart_000_0068_01C0EF9F.82B34880-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 22:22:30 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] FDS To me, yesterday's action clearly spells "churning". And today's volume and close would confirm that. The question in my mind, looking at the chart, is whether it can hold support at 40 (one week base), or 38 (also a one week base). Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: esetser To: Sent: Thursday, June 07, 2001 8:52 PM Subject: Re: [CANSLIM] FDS I purchased the stock, and felt yesterday's action was okay, not great, but okay. Basically the stock went up quite a bit, and then came back to close lower for the day on very large volume. However, looking at the volume for the day, the move up was driven by large volume, and the drop was much lower. I guessed this was profit-taking. However, today's further drop below the pivot (if only a litte) is more disturbing. I would hope to see the stock firm back up above the pivot in the next day or two, and hopefully see the buying volume come back!! At 03:02 PM 6/7/01 -0700, you wrote: > > >Any comments about FDS, one of the 'stocks in the >news' in IBD this past week? > >I cannot account for the drop of the past two days >other than profit taking and I note that there is an >earnings announcement on June 12. > >__________________________________________________ >Do You Yahoo!? >Get personalized email addresses from Yahoo! Mail - only $35 >a year! http://personal.mail.yahoo.com/ > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 22:30:35 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Intro:Ernie Hill Welcome to the group, Ernie, it's a good place to work on CANSLIM. I agree with you that the biggest problem with the 8% stop rule is getting in correctly, so that 8% down from there is correctly placed. I personally will place my mental stop (I rarely use a hard stop) where I think it belongs, but generally I find it is within 8% of my entry (I usually cheat and enter early, before the b/o or at least before it is confirmed). Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: Ernie Hill To: Sent: Thursday, June 07, 2001 9:11 PM Subject: [CANSLIM] Intro:Ernie Hill I live in Sugarland TX, I have been in and out of the stock market since 83. I traded commodity futures from 85-87. I made a lot of money, and lost even more. At the time I traded futures I lacked the discipline needed to succeed. Now I prefer just to invest in stocks. I have studied and used many different investing/trading techniques. I consider CANSLIM to be among the best ways to invest in stocks, and the best way for the average investor. I do disagree with WON on the 8% rule. This rule is fine for the professional investor, because he is able to watch stocks throughout the day and can "buy right" more often than can the average investor. Because of this the professional is afforded many more opportunities than is the average investor. If the professional gets stopped out of a good stock, he just looks to the next opportunity. The average investor is not able to pull the trigger and "buy right" very often, and therefor misses many opportunities. Having said all of that I prefer to use technical stops which will often keep me in a stock when an 8% stop would get me out. Properly placed stops give you risk adjusted protection against being whipsawed out of a stock only to see it go higher. While I often take on more than 8% risk (sometimes it is less than 8%) I do not get stopped out as often, and therefor I can take advantage of the few opportunities I get to "buy right". I also like to take entry points on some chart patterns WON does not mention in his book. If I have found a CANSLIMer that meets all of the criteria except chart pattern, I will look for other patterns that I know from experience can give me a low risk entry point. One in particular I like is when a stock begins to trend upward and the price touches the bottom of a Gann angle line. This entry point usually allows for a very tight stop, often less than 8%. I look forward to sharing my CANSLIMers with you, and learning from the expertise that you guys/gals have accumulated. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 22:36:22 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] e trade This is a multi-part message in MIME format. - ------=_NextPart_000_0096_01C0EFA2.47AC79C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable The upside to using a limit is that you have control over the execution = price (whether a buy or sell). The downside is that your limit may be = missed entirely, and your order is not executed. In the case of a gap up or down, this could be a big deal. If the price = is moving slowly and you can check in on it frequently, however, you may = have time to adjust your limit. Stop limits are generally not recommended on Sell Stops. If you should = sell if your stop price is hit, then you should be selling at any price = lower than that as well, even if it gaps down 3 or 4 points past your = stop price before trading. Using a Buy Stop Limit is a little different, since that means, at = worst, you missed the train leaving the station, and wait to catch the = next one. No harm, no foul. And maybe it will even back into the station = and give you a second chance. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: BIKEAR@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Thursday, June 07, 2001 9:38 PM Subject: Re: [CANSLIM] e trade thanks....I have always used a stop sell and not a stop limit...I will = do a=20 stop limit next time....janis=20 - ------=_NextPart_000_0096_01C0EFA2.47AC79C0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
The upside to using a limit is that you have control = over the=20 execution price (whether a buy or sell). The downside is that your limit = may be=20 missed entirely, and your order is not executed.
 
In the case of a gap up or down, this could be a big = deal. If=20 the price is moving slowly and you can check in on it frequently, = however, you=20 may have time to adjust your limit.
 
Stop limits are generally not recommended on Sell = Stops. If=20 you should sell if your stop price is hit, then you should be selling at = any=20 price lower than that as well, even if it gaps down 3 or 4 points past = your stop=20 price before trading.
 
Using a Buy Stop Limit is a little different, since = that=20 means, at worst, you missed the train leaving the station, and wait to = catch the=20 next one. No harm, no foul. And maybe it will even back into the station = and=20 give you a second chance.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 BIKEAR@aol.com
To: canslim@lists.xmission.com =
Sent: Thursday, June 07, 2001 = 9:38=20 PM
Subject: Re: [CANSLIM] e = trade

thanks....I = have always=20 used a stop sell and not a stop limit...I will do a
stop limit = next=20 time....janis - ------=_NextPart_000_0096_01C0EFA2.47AC79C0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 19:46:06 -0700 From: Dan Subject: Re: [CANSLIM] upward wedging hangle.......was DGX Can someone post a picture of one? A thousand words is worth a picture! Norman wrote: > Here's what WON wrote about the wedging handle (HTMMIS, p. 164). > > "Additionally, handles that consistently drift upwards along their price > lows have a higher probability of failing when they break out into new > highs. This wedging-upward characteristic along low points in the handle > does not allow the stock to undergo the needed correction or shakeout after > having advanced from the low of the base into the upper half of the pattern. > This high-risk characteristic tends to occur in either third- or > fourth-stage bases, laggard stock bases, or very active market leaders that > become too widely followed and obvious." > > DGX sure looks like a breakout that has pulled back and would have almost an > triggered the 8% s/l (assuming a purchase at 62.88) on 5/30/01. I wouldn't > call it failed, yet. I don't see the "wedging-upward" handle. > > Norm - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 7 Jun 2001 22:47:49 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Hard Stop Rules/Position Sizing I don't. I am a big believer in diversification, so scale my positions based on the amount of money invested. The only thing I do that is vaguely risk aversion is to invest a smaller amount of money on the very low priced stocks (unfortunately my latest very low priced buy is also now my best performer, up 16% already - aaarrrgggghhhhh!!!) Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: dsg To: Sent: Thursday, June 07, 2001 10:05 PM Subject: [CANSLIM] Hard Stop Rules/Position Sizing In the discussion of how and where to place stops, several members have reported using technical conditions to place their stops, instead of some arbitrary (7-8% for CANSLIM) value. When you do this, do you adjust the size of the position you take to limit your down-side exposure? For instance, if you wanted your maximum risk on a trade to be 2% of your portfolio value, and the technical conditions required a stop 15% below your buy point, would you reduce the number of shares purchased to adhere to the 2% maximum loss rule? - -- Doug - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 07 Jun 2001 21:52:10 -0500 From: Ernie Hill Subject: Re: [CANSLIM] Intro:Ernie Hill Steve, The technical stops I refer to are nothing more than placing a stop just below a support level. In the case of a handle formation that would be just below the lowest low of the handle or just below the lowest close of the handle. However, in some cases the buy point may be too far above the support level of the handle formation for my risk tolerance to accept that as my stop. In those instances I will use a combination of Elliott wave analysis and Gann angle line analysis of a fifteen minute bar chart to set my stop. When I can't find a clear support level within my risk tolerance using this method I guess or punt depending on how much I like the stock. Steve F wrote: > Welcome to the group. This has been a terrific and > profitable forum for me. I am a bit ashamed to say > that I have received far more from the people here > than I have given. I welcome your investing > insights. > > Can you tell me more about the technical indicators > that you mentioned. I also have some difficulty > adhering to the 8% rule unless I spend the day at my > computer and would like to hear more. > > Steve > > I --- Ernie Hill wrote: > > I live in Sugarland TX, I have been in and out of > > the stock market since > > 83. I traded commodity futures from 85-87. I made a > > lot of money, and > > lost even more. At the time I traded futures I > > lacked the discipline > > needed to succeed. Now I prefer just to invest in > > stocks. I have studied > > and used many different investing/trading > > techniques. I consider CANSLIM > > to be among the best ways to invest in stocks, and > > the best way for the > > average investor. > > > > I do disagree with WON on the 8% rule. This rule is > > fine for the > > professional investor, because he is able to watch > > stocks throughout the > > day and can "buy right" more often than can the > > average investor. > > Because of this the professional is afforded many > > more opportunities > > than is the average investor. If the professional > > gets stopped out of a > > good stock, he just looks to the next opportunity. > > The average investor > > is not able to pull the trigger and "buy right" very > > often, and therefor > > misses many opportunities. > > > > Having said all of that I prefer to use technical > > stops which will often > > keep me in a stock when an 8% stop would get me out. > > Properly placed > > stops give you risk adjusted protection against > > being whipsawed out of a > > stock only to see it go higher. While I often take > > on more than 8% risk > > (sometimes it is less than 8%) I do not get stopped > > out as often, and > > therefor I can take advantage of the few > > opportunities I get to "buy > > right". > > > > I also like to take entry points on some chart > > patterns WON does not > > mention in his book. If I have found a CANSLIMer > > that meets all of the > > criteria except chart pattern, I will look for other > > patterns that I > > know from experience can give me a low risk entry > > point. One in > > particular I like is when a stock begins to trend > > upward and the price > > touches the bottom of a Gann angle line. This entry > > point usually allows > > for a very tight stop, often less than 8%. > > > > I look forward to sharing my CANSLIMers with you, > > and learning from the > > expertise that you guys/gals have accumulated. > > > > > > - > > -To subscribe/unsubscribe, email > > "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your > email. > > __________________________________________________ > Do You Yahoo!? > Get personalized email addresses from Yahoo! Mail - only $35 > a year! http://personal.mail.yahoo.com/ > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1453 ****************************** 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.