From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1832 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, November 20 2001 Volume 02 : Number 1832 In this issue: Re: [CANSLIM] DRI C&H [CANSLIM] Bull Market, or not? Re: [CANSLIM] FCN, ATAC Re: [CANSLIM] FCN, ATAC - OT Re: [CANSLIM] FCN, ATAC - OT ---------------------------------------------------------------------- Date: Tue, 20 Nov 2001 06:40:26 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] DRI C&H This is a multi-part message in MIME format. - ------=_NextPart_000_0039_01C1718E.3D2DF000 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable John, There is a disproportionate drop in the RS line compared to the droop in = the handle, would make me concerned about overhead resistance. Also, = earnings growth for current year forecast at only 13%, another negative. = DGO puts ADV at 799,600 so you need nearly 1.6 million for a good b/o. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: John Adair=20 To: Canslim@Lists.Xmission.Com=20 Sent: Monday, November 19, 2001 9:29 PM Subject: [CANSLIM] DRI C&H Today's ibd stock screen lists DRI . There is a good base and the = handle is forming over a 2 week period. Volume is drying up The pivot is = about 31.65 I would expect the volume would have to reach over = 1,000000 for a good blastoff The rest of the numbers look good. I = expect if tomorrow is an up day it will go. - ------=_NextPart_000_0039_01C1718E.3D2DF000 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
John,
 
There is a disproportionate drop in the RS line = compared to=20 the droop in the handle, would make me concerned about overhead = resistance.=20 Also, earnings growth for current year forecast at only 13%, another = negative.=20 DGO puts ADV at 799,600 so you need nearly 1.6 million for a good=20 b/o.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 John=20 Adair
To: Canslim@Lists.Xmission.Com =
Sent: Monday, November 19, 2001 = 9:29=20 PM
Subject: [CANSLIM] DRI = C&H

Today’s ibd stock=20 screen lists DRI . There is a good base and  the handle is forming over a = 2 week=20 period. Volume is drying up The pivot is about 31.65  I would expect the volume = would have=20 to reach over     =20 1,000000 for a good blastoff The rest of the numbers look = good.  I  expect if tomorrow is an up = day=20 it  will=20 = go.

- ------=_NextPart_000_0039_01C1718E.3D2DF000-- - - - -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: Tue, 20 Nov 2001 07:03:01 -0500 From: "Tom Worley" Subject: [CANSLIM] Bull Market, or not? This is a multi-part message in MIME format. - ------=_NextPart_000_0061_01C17191.6487C2E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable With all the talk yesterday about the DOW 30 now up 21%, "officially" = signaling a bull market, I decided to check the rest of the major = indexes. Turns out, DJ Utilities is of course still down, and = descending. Close to, but not yet up 20%, is the NYSE Financials, = S&P500, and the NYSE Composite. So some major indexes still haven't quite broken the 20% recovery level, = so I would say the bull is not quite "official". Also interesting that virtually every major index hit its year low on = the same date (9/21). May suggest something about market breadth. Tom Worley stkguru@netside.net AIM: TexWorley - ------=_NextPart_000_0061_01C17191.6487C2E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
With all the talk yesterday about the DOW 30 now up = 21%,=20 "officially" signaling a bull market, I decided to check the rest of the = major=20 indexes. Turns out, DJ Utilities is of course still down, and = descending. Close=20 to, but not yet up 20%, is the NYSE Financials, S&P500, and the NYSE = Composite.
 
So some major indexes still haven't quite broken the = 20%=20 recovery level, so I would say the bull is not quite = "official".
 
Also interesting that virtually every major index = hit its year=20 low on the same date (9/21). May suggest something about market=20 breadth.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
- ------=_NextPart_000_0061_01C17191.6487C2E0-- - - - -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: Tue, 20 Nov 2001 05:40:38 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] FCN, ATAC Thanks so much for your in-depth analysis and explanation. The hammer and shooting star are what I've always thought of as "tails" and I look for them in P/V as signs of "key reversal" off the top as you suggest, or if a stock is faltering and there's a tail from below the 50 dMA, most often a sign of big support. Generally, I look for 2 kinds of gaps: gaps on earnings news (very reliable either direction for indication of trend) or exhaustion gaps, somewhat reliable. But, with the exception of blow-off tops with gaps up, the exhaustion gaps seem more difficult to interpret and what you have written here is very helpful. I'll agree with you on 'trading' CANSLIM vs 'investing' CANSLIM lately. Too much rotation going on in the iffy market over the last 18 months has increased risk, so better to take advantage of 'mispricing' and take what profits are offered. Once the economic uncertainty abates and industry growth is identified, rotation should slow and money will flow more steadily to our CANSLIM candidates. It's just a matter of time until the sweet spots makes themselves known. Many thanks, Katherine kmalm@earthlink.net - ----- Original Message ----- From: "Al French" To: Sent: Monday, November 19, 2001 10:06 PM Subject: Re: [CANSLIM] FCN, ATAC > I viewed the gap as indicating strength, but the doji (looks like > a + sign) indicates indecision. If it heads down tomorrow, I'm > out of there. > > I bought back this morning on the gap and had I been able to watch > it intraday I'd be out because it did not rally further. The > volatile market for the past two years has taught me to swing > trade even stocks I consider a long-term hold based on CANSLIM > principles. Two commissions cost less than a retracement. > That's why I bailed out on 11/13, stood aside for the $6 > retracement, and bought back today when I believed it was headed > up again. > > I believe the hammer and shooting star (T in downtrend and > inverted T in uptrend) are the most reliable one-day indicators > around, although they are only predictive of the following day. > But look at a few charts and see how often they occur with > significant reversals. Edwards & Magee call these one-day > reversal signals; some call them key reversal days. > > An exhaustion gap is bearish and signals the end of a strong run > up. Continuation gaps are just that, but they can be sometimes > difficult to distinguish from exhaustion gaps until you can see > what follows. In a chart with many gaps, e.g., SNE, gaps are > meaningless. A gap associated with a reversal is called a > breakout gap and should signal a strong move (unless there is news > to account for it). I can only hope that is what FCN is up to, or > I may get a sting tomorrow. > > Al French > > ----- Original Message ----- > From: "Katherine Malm" > To: > Sent: Monday, November 19, 2001 9:25 PM > Subject: Re: [CANSLIM] FCN, ATAC > > > > Al, > > > > Would you consider that FCN gap this morning and lack of > follow-through to > > be an exhaustion gap using your candlestick indicators? I am > uneducated in > > candlestick, so am not familiar with the doji sign, but am > interested in > > your analysis vs. what I would read based on price/volume. > > > > Thanks, > > Katherine > > > > > > ----- Original Message ----- > > From: "Al French" > > > > > FCN's 95 cent gap up at the open today validated the reversal > > > signal on Friday. It closed up over 3% but the lack of follow > > > through (almost doji) is not encouraging. > > > > > > > > - > > -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: Tue, 20 Nov 2001 06:22:31 -0600 From: "Norman" Subject: Re: [CANSLIM] FCN, ATAC - OT This is a multi-part message in MIME format. - ------=_NextPart_000_0063_01C1718B.BC2CCCD0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Katharine, "It's just a matter of time until the sweet spots makes themselves = known." This isn't a subliminal plug for KKD is it? :-) Norm - ----- Original Message -----=20 From: "Katherine Malm" To: Sent: Tuesday, November 20, 2001 5:40 AM Subject: Re: [CANSLIM] FCN, ATAC > Thanks so much for your in-depth analysis and explanation. The hammer = and > shooting star are what I've always thought of as "tails" and I look = for them > in P/V as signs of "key reversal" off the top as you suggest, or if a = stock > is faltering and there's a tail from below the 50 dMA, most often a = sign of > big support. Generally, I look for 2 kinds of gaps: gaps on earnings = news > (very reliable either direction for indication of trend) or exhaustion = gaps, > somewhat reliable. But, with the exception of blow-off tops with gaps = up, > the exhaustion gaps seem more difficult to interpret and what you have > written here is very helpful. >=20 > I'll agree with you on 'trading' CANSLIM vs 'investing' CANSLIM = lately. Too > much rotation going on in the iffy market over the last 18 months has > increased risk, so better to take advantage of 'mispricing' and take = what > profits are offered. Once the economic uncertainty abates and industry > growth is identified, rotation should slow and money will flow more = steadily > to our CANSLIM candidates. It's just a matter of time until the sweet = spots > makes themselves known. >=20 > Many thanks, > Katherine > kmalm@earthlink.net >=20 >=20 > ----- Original Message ----- > From: "Al French" > To: > Sent: Monday, November 19, 2001 10:06 PM > Subject: Re: [CANSLIM] FCN, ATAC >=20 >=20 > > I viewed the gap as indicating strength, but the doji (looks like > > a + sign) indicates indecision. If it heads down tomorrow, I'm > > out of there. > > > > I bought back this morning on the gap and had I been able to watch > > it intraday I'd be out because it did not rally further. The > > volatile market for the past two years has taught me to swing > > trade even stocks I consider a long-term hold based on CANSLIM > > principles. Two commissions cost less than a retracement. > > That's why I bailed out on 11/13, stood aside for the $6 > > retracement, and bought back today when I believed it was headed > > up again. > > > > I believe the hammer and shooting star (T in downtrend and > > inverted T in uptrend) are the most reliable one-day indicators > > around, although they are only predictive of the following day. > > But look at a few charts and see how often they occur with > > significant reversals. Edwards & Magee call these one-day > > reversal signals; some call them key reversal days. > > > > An exhaustion gap is bearish and signals the end of a strong run > > up. Continuation gaps are just that, but they can be sometimes > > difficult to distinguish from exhaustion gaps until you can see > > what follows. In a chart with many gaps, e.g., SNE, gaps are > > meaningless. A gap associated with a reversal is called a > > breakout gap and should signal a strong move (unless there is news > > to account for it). I can only hope that is what FCN is up to, or > > I may get a sting tomorrow. > > > > Al French > > > > ----- Original Message ----- > > From: "Katherine Malm" > > To: > > Sent: Monday, November 19, 2001 9:25 PM > > Subject: Re: [CANSLIM] FCN, ATAC > > > > > > > Al, > > > > > > Would you consider that FCN gap this morning and lack of > > follow-through to > > > be an exhaustion gap using your candlestick indicators? I am > > uneducated in > > > candlestick, so am not familiar with the doji sign, but am > > interested in > > > your analysis vs. what I would read based on price/volume. > > > > > > Thanks, > > > Katherine > > > > > > > > > ----- Original Message ----- > > > From: "Al French" > > > > > > > FCN's 95 cent gap up at the open today validated the reversal > > > > signal on Friday. It closed up over 3% but the lack of follow > > > > through (almost doji) is not encouraging. > > > > > > > > > > > > - > > > -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. >=20 >=20 > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. >=20 >=20 >=20 - ------=_NextPart_000_0063_01C1718B.BC2CCCD0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katharine,
 
"It's just a matter of time until the sweet = spots makes=20 themselves known."
 
This isn't a subliminal plug for KKD is it? :-)
 
Norm
 
----- Original Message -----=20
From: "Katherine Malm" <kmalm@earthlink.net>
To: <canslim@lists.xmission.com= >
Sent: Tuesday, November 20, 2001 5:40 AM
Subject: Re: [CANSLIM] FCN, ATAC

> Thanks so much for your in-depth analysis and = explanation.=20 The hammer and
> shooting star are what I've always thought of as = "tails"=20 and I look for them
> in P/V as signs of "key reversal" off the = top as you=20 suggest, or if a stock
> is faltering and there's a tail from = below the 50=20 dMA, most often a sign of
> big support. Generally, I look for 2 = kinds of=20 gaps: gaps on earnings news
> (very reliable either direction for=20 indication of trend) or exhaustion gaps,
> somewhat reliable. But, = with=20 the exception of blow-off tops with gaps up,
> the exhaustion gaps = seem=20 more difficult to interpret and what you have
> written here is = very=20 helpful.
>
> I'll agree with you on 'trading' CANSLIM vs=20 'investing' CANSLIM lately. Too
> much rotation going on in the = iffy=20 market over the last 18 months has
> increased risk, so better to = take=20 advantage of 'mispricing' and take what
> profits are offered. = Once the=20 economic uncertainty abates and industry
> growth is identified, = rotation=20 should slow and money will flow more steadily
> to our CANSLIM = candidates.=20 It's just a matter of time until the sweet spots
> makes = themselves=20 known.
>
> Many thanks,
> Katherine
> kmalm@earthlink.net
> =
>=20
> ----- Original Message -----
> From: "Al French" <alfrench@mindspring.com>>=20 To: <canslim@lists.xmission.com= >
>=20 Sent: Monday, November 19, 2001 10:06 PM
> Subject: Re: [CANSLIM] = FCN,=20 ATAC
>
>
> > I viewed the gap as indicating = strength, but=20 the doji (looks like
> > a + sign) indicates indecision.  = If it=20 heads down tomorrow, I'm
> > out of there.
> >
> = > I=20 bought back this morning on the gap and had I been able to watch
> = > it=20 intraday I'd be out because it did not rally further.  The
> = >=20 volatile market for the past two years has taught me to swing
> = > trade=20 even stocks I consider a long-term hold based on CANSLIM
> >=20 principles.  Two commissions cost  less than a = retracement.
>=20 > That's why I bailed out on 11/13, stood aside for the $6
> = >=20 retracement, and bought back today when I believed it was headed
> = > up=20 again.
> >
> > I believe the hammer and shooting star = (T in=20 downtrend and
> > inverted T in uptrend) are the most reliable = one-day=20 indicators
> > around, although they are only predictive of the = following day.
> > But look at a few charts and see how often = they=20 occur with
> > significant reversals.  Edwards & Magee = call=20 these one-day
> > reversal signals; some call them key reversal = days.
> >
> > An exhaustion gap is bearish and signals = the end=20 of a strong run
> > up.  Continuation gaps are just that, = but they=20 can be sometimes
> > difficult to distinguish from exhaustion = gaps=20 until you can see
> > what follows.  In a chart with many = gaps,=20 e.g., SNE, gaps are
> > meaningless.  A gap associated = with a=20 reversal is called a
> > breakout gap and should signal a = strong move=20 (unless there is news
> > to account for it).  I can only = hope=20 that is what FCN is up to, or
> > I may get a sting = tomorrow.
>=20 >
> > Al French
> >
> > ----- Original = Message=20 - -----
> > From: "Katherine Malm" <kmalm@earthlink.net>
> = > To:=20 <canslim@lists.xmission.com= >
>=20 > Sent: Monday, November 19, 2001 9:25 PM
> > Subject: Re: = [CANSLIM]=20 FCN, ATAC
> >
> >
> > > Al,
> >=20 >
> > > Would you consider that FCN gap this morning and = lack=20 of
> > follow-through to
> > > be an exhaustion gap = using=20 your candlestick indicators? I am
> > uneducated in
> = > >=20 candlestick, so am not familiar with the doji sign, but am
> >=20 interested in
> > > your analysis vs. what I would read = based on=20 price/volume.
> > >
> > > Thanks,
> > = >=20 Katherine
> > >
> > >
> > > ----- = Original=20 Message -----
> > > From: "Al French" <alfrench@mindspring.com>>=20 > >
> > > > FCN's 95 cent gap up at the open today=20 validated the reversal
> > > > signal on Friday. It = closed up=20 over 3% but the lack of follow
> > > > through (almost = doji) is=20 not encouraging.
> > >
> > >
> > = >
>=20 > > -
> > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
>= ; >=20 > -In the email body, write "subscribe canslim" or
> > >=20 - -"unsubscribe canslim".  Do not use quotes in your email.
>=20 >
> >
> > -
> > -To subscribe/unsubscribe, = email=20 "majordomo@xmission.com"
>= ;=20 > -In the email body, write "subscribe canslim" or
> > = - -"unsubscribe=20 canslim".  Do not use quotes in your email.
>
> =
>=20 - -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
>= ; -In the=20 email body, write "subscribe canslim" or
> -"unsubscribe = canslim". =20 Do not use quotes in your email.
>
>
> = - ------=_NextPart_000_0063_01C1718B.BC2CCCD0-- - - - -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: Tue, 20 Nov 2001 06:05:30 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] FCN, ATAC - OT This is a multi-part message in MIME format. - ------=_NextPart_000_0126_01C17189.5BE3D280 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable You're too funny. Such fun when someone uncovers the pun. Have a great day! Katherine ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, November 20, 2001 6:22 AM Subject: Re: [CANSLIM] FCN, ATAC - OT Katharine, "It's just a matter of time until the sweet spots makes themselves = known." This isn't a subliminal plug for KKD is it? :-) Norm ----- Original Message -----=20 From: "Katherine Malm" To: Sent: Tuesday, November 20, 2001 5:40 AM Subject: Re: [CANSLIM] FCN, ATAC > Thanks so much for your in-depth analysis and explanation. The = hammer and > shooting star are what I've always thought of as "tails" and I look = for them > in P/V as signs of "key reversal" off the top as you suggest, or if = a stock > is faltering and there's a tail from below the 50 dMA, most often a = sign of > big support. Generally, I look for 2 kinds of gaps: gaps on earnings = news > (very reliable either direction for indication of trend) or = exhaustion gaps, > somewhat reliable. But, with the exception of blow-off tops with = gaps up, > the exhaustion gaps seem more difficult to interpret and what you = have > written here is very helpful. >=20 > I'll agree with you on 'trading' CANSLIM vs 'investing' CANSLIM = lately. Too > much rotation going on in the iffy market over the last 18 months = has > increased risk, so better to take advantage of 'mispricing' and take = what > profits are offered. Once the economic uncertainty abates and = industry > growth is identified, rotation should slow and money will flow more = steadily > to our CANSLIM candidates. It's just a matter of time until the = sweet spots > makes themselves known. >=20 > Many thanks, > Katherine > kmalm@earthlink.net >=20 >=20 > ----- Original Message ----- > From: "Al French" > To: > Sent: Monday, November 19, 2001 10:06 PM > Subject: Re: [CANSLIM] FCN, ATAC >=20 >=20 > > I viewed the gap as indicating strength, but the doji (looks like > > a + sign) indicates indecision. If it heads down tomorrow, I'm > > out of there. > > > > I bought back this morning on the gap and had I been able to watch > > it intraday I'd be out because it did not rally further. The > > volatile market for the past two years has taught me to swing > > trade even stocks I consider a long-term hold based on CANSLIM > > principles. Two commissions cost less than a retracement. > > That's why I bailed out on 11/13, stood aside for the $6 > > retracement, and bought back today when I believed it was headed > > up again. > > > > I believe the hammer and shooting star (T in downtrend and > > inverted T in uptrend) are the most reliable one-day indicators > > around, although they are only predictive of the following day. > > But look at a few charts and see how often they occur with > > significant reversals. Edwards & Magee call these one-day > > reversal signals; some call them key reversal days. > > > > An exhaustion gap is bearish and signals the end of a strong run > > up. Continuation gaps are just that, but they can be sometimes > > difficult to distinguish from exhaustion gaps until you can see > > what follows. In a chart with many gaps, e.g., SNE, gaps are > > meaningless. A gap associated with a reversal is called a > > breakout gap and should signal a strong move (unless there is news > > to account for it). I can only hope that is what FCN is up to, or > > I may get a sting tomorrow. > > > > Al French > > > > ----- Original Message ----- > > From: "Katherine Malm" > > To: > > Sent: Monday, November 19, 2001 9:25 PM > > Subject: Re: [CANSLIM] FCN, ATAC > > > > > > > Al, > > > > > > Would you consider that FCN gap this morning and lack of > > follow-through to > > > be an exhaustion gap using your candlestick indicators? I am > > uneducated in > > > candlestick, so am not familiar with the doji sign, but am > > interested in > > > your analysis vs. what I would read based on price/volume. > > > > > > Thanks, > > > Katherine > > > > > > > > > ----- Original Message ----- > > > From: "Al French" > > > > > > > FCN's 95 cent gap up at the open today validated the reversal > > > > signal on Friday. It closed up over 3% but the lack of follow > > > > through (almost doji) is not encouraging. > > > > > > > > > > > > - > > > -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. >=20 >=20 > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. >=20 >=20 >=20 - ------=_NextPart_000_0126_01C17189.5BE3D280 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
You're too funny. Such fun when someone = uncovers the pun.
 
Have a great day!
Katherine
----- Original Message -----
From:=20 Norman
Sent: Tuesday, November 20, = 2001 6:22=20 AM
Subject: Re: [CANSLIM] FCN, = ATAC -=20 OT

Katharine,
 
"It's just a matter of time until the sweet = spots=20 makes themselves known."
 
This isn't a subliminal plug for KKD is it? :-)
 
Norm
 
----- Original Message -----=20
From: "Katherine Malm" <kmalm@earthlink.net>
To: <canslim@lists.xmission.com= >
Sent: Tuesday, November 20, 2001 5:40 AM
Subject: Re: [CANSLIM] FCN, ATAC

> Thanks so much for your in-depth analysis and = explanation.=20 The hammer and
> shooting star are what I've always thought of = as=20 "tails" and I look for them
> in P/V as signs of "key reversal" = off the=20 top as you suggest, or if a stock
> is faltering and there's a = tail from=20 below the 50 dMA, most often a sign of
> big support. Generally, = I look=20 for 2 kinds of gaps: gaps on earnings news
> (very reliable = either=20 direction for indication of trend) or exhaustion gaps,
> = somewhat=20 reliable. But, with the exception of blow-off tops with gaps = up,
> the=20 exhaustion gaps seem more difficult to interpret and what you = have
>=20 written here is very helpful.
>
> I'll agree with you on=20 'trading' CANSLIM vs 'investing' CANSLIM lately. Too
> much = rotation=20 going on in the iffy market over the last 18 months has
> = increased=20 risk, so better to take advantage of 'mispricing' and take = what
>=20 profits are offered. Once the economic uncertainty abates and = industry
>=20 growth is identified, rotation should slow and money will flow more=20 steadily
> to our CANSLIM candidates. It's just a matter of time = until=20 the sweet spots
> makes themselves known.
>
> Many=20 thanks,
> Katherine
> kmalm@earthlink.net
> =
>=20
> ----- Original Message -----
> From: "Al French" <alfrench@mindspring.com>>=20 To: <canslim@lists.xmission.com= >
>=20 Sent: Monday, November 19, 2001 10:06 PM
> Subject: Re: = [CANSLIM] FCN,=20 ATAC
>
>
> > I viewed the gap as indicating = strength,=20 but the doji (looks like
> > a + sign) indicates = indecision.  If=20 it heads down tomorrow, I'm
> > out of there.
> = >
>=20 > I bought back this morning on the gap and had I been able to=20 watch
> > it intraday I'd be out because it did not rally=20 further.  The
> > volatile market for the past two years = has=20 taught me to swing
> > trade even stocks I consider a = long-term hold=20 based on CANSLIM
> > principles.  Two commissions = cost =20 less than a retracement.
> > That's why I bailed out on = 11/13, stood=20 aside for the $6
> > retracement, and bought back today when = I=20 believed it was headed
> > up again.
> >
> = > I=20 believe the hammer and shooting star (T in downtrend and
> > = inverted=20 T in uptrend) are the most reliable one-day indicators
> > = around,=20 although they are only predictive of the following day.
> > = But look=20 at a few charts and see how often they occur with
> > = significant=20 reversals.  Edwards & Magee call these one-day
> > = reversal=20 signals; some call them key reversal days.
> >
> > = An=20 exhaustion gap is bearish and signals the end of a strong run
> = >=20 up.  Continuation gaps are just that, but they can be = sometimes
>=20 > difficult to distinguish from exhaustion gaps until you can = see
>=20 > what follows.  In a chart with many gaps, e.g., SNE, gaps=20 are
> > meaningless.  A gap associated with a reversal = is called=20 a
> > breakout gap and should signal a strong move (unless = there is=20 news
> > to account for it).  I can only hope that is = what FCN=20 is up to, or
> > I may get a sting tomorrow.
> = >
>=20 > Al French
> >
> > ----- Original Message = - -----
>=20 > From: "Katherine Malm" <kmalm@earthlink.net>
> = > To:=20 <canslim@lists.xmission.com= >
>=20 > Sent: Monday, November 19, 2001 9:25 PM
> > Subject: Re: = [CANSLIM] FCN, ATAC
> >
> >
> > > = Al,
>=20 > >
> > > Would you consider that FCN gap this = morning and=20 lack of
> > follow-through to
> > > be an = exhaustion gap=20 using your candlestick indicators? I am
> > uneducated = in
>=20 > > candlestick, so am not familiar with the doji sign, but = am
>=20 > interested in
> > > your analysis vs. what I would = read based=20 on price/volume.
> > >
> > > Thanks,
> = > >=20 Katherine
> > >
> > >
> > > ----- = Original=20 Message -----
> > > From: "Al French" <alfrench@mindspring.com>>=20 > >
> > > > FCN's 95 cent gap up at the open = today=20 validated the reversal
> > > > signal on Friday. It = closed up=20 over 3% but the lack of follow
> > > > through (almost = doji) is=20 not encouraging.
> > >
> > >
> > = >
>=20 > > -
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