From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1930 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, December 11 2001 Volume 02 : Number 1930 In this issue: [CANSLIM] Using DGO beta scans AW: [CANSLIM] Analysis on Industry Groups and their technical patterns Re: [CANSLIM] Analysis on Industry Groups and their technical patterns [CANSLIM] Filter Criteria [CANSLIM] stacking the odds in my favor-buying before the pivot point Re: [CANSLIM]"Rubberband Sell Rule" ---------------------------------------------------------------------- Date: Tue, 11 Dec 2001 15:14:40 -0600 From: "Katherine Malm" Subject: [CANSLIM] Using DGO beta scans This is a multi-part message in MIME format. - ------=_NextPart_000_0266_01C18256.8E46FDA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable The following is the response I received from DGO regarding the problem = with scans of >=3D0, <10 where I was concerned about picking up all the = appropriate members of a set: Katherine =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Thank you for your feedback and the opportunity to address your = questions. The data for the "% of Stock Owned by Mutual Funds" is rounded to the nearest whole number. This being the case, you may screen the database = for companies with less than 10% of their stock held by mutual funds by = entering 0 to 9 for this item. This would be the same as using <10, if it were available, due to the rounding of the data. For companies with 10% or = more of their stock held by mutual funds, you may enter 10 in the "from" = field and use whatever top range you like, up to 100. Using this example, you would not miss any stocks in the range of 9 to 10 or include stocks with = 10% twice in the set of screens you run. Sincerely, Frank Daily Graphs Online - ------=_NextPart_000_0266_01C18256.8E46FDA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
The following is the response I = received from DGO=20 regarding the problem with scans of >=3D0, <10 where I was = concerned about=20 picking up all the appropriate members of a set:
 
Katherine
 
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
 
Thank you for your feedback and the opportunity to address your=20 questions.

The data for the "% of Stock Owned by Mutual Funds" is = rounded=20 to the
nearest whole number. This being the case, you may screen the = database=20 for
companies with less than 10% of their stock held by mutual funds = by=20 entering
0 to 9 for this item. This would be the same as using = <10, if it=20 were
available, due to the rounding of the data. For companies with = 10% or=20 more
of their stock held by mutual funds, you may enter 10 in the = "from"=20 field
and use whatever top range you like, up to 100. Using this = example,=20 you
would not miss any stocks in the range of 9 to 10 or include = stocks with=20 10%
twice in the set of screens you run.
 
Sincerely,

Frank
Daily Graphs Online

 
- ------=_NextPart_000_0266_01C18256.8E46FDA0-- - - - -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, 11 Dec 2001 23:51:25 +0100 From: Andreas Himmelreich Subject: AW: [CANSLIM] Analysis on Industry Groups and their technical patterns Hi Katherine, Thank you. As we all I try to look for theories that really give an edge. And this is the reason why I want look into your following statement deeper (in the next days and weeks) --> "The good stocks will start moving out ahead of the > pack. Once you get a couple of participants, that may be enough evidence to > show strong movement, rather than waiting for a C&H B/O of the industry > itself. " Something tells me, that this is not always like this (at least this would be wonderfull). Especially when it comes to (small cap) CANSLIM stocks. I just found to many examples (which I will hack into an excel spreadsheet in order to see if this is right or not) where this was not the case. The uptrend might get supported by stocks in the group that do not meet rigid canslim selection. Here some stuff from Market Wizard Gill Blake that might be interesting in this context --> "In researching the price behavior of individual stocks, I have found that significant daily price changes (with relative strength) have about a 55 percent change of being followed by a similar directional move on the following day. After allowing for commissions and bid/ask spreads, that is not a sufficient probability edge to be tradabel. Now as an analogy, assume you have a stack of coins, and each has a 55% chance of landing on heads. If you toss a single coin the odds of gettin heads are 55%. If you toss nine coins, the odds of getting more heads then tails go upt to 62%. And if you toss ninetynine coins, the odds of gettingmore heads than tails go up to about 75%. Its a function of the bionominal probability distribution." So if a whole group moves, that might tell you something about the quality of the breakout. See you Andreas > -----Ursprungliche Nachricht----- > Von: Katherine Malm [SMTP:kmalm@earthlink.net] > Gesendet am: Tuesday, December 11, 2001 9:40 PM > An: canslim@lists.xmission.com > Betreff: Re: [CANSLIM] Analysis on Industry Groups and their technical patterns > > Hi Andreas, > > Excellent analysis!!!!! > > What you describe is extremely close to my own approach. Now that DGO is > *finally* offering industry graphs, this will be far easier to do. I've been > using another product to do this for the last 4 years, so the specifics of > my approach are slightly different as a result. > > One thing I might add to your general analysis. When watching industries, > you are really looking at a couple of things. First, is it extended and/or > getting ready to top out? Looking at the industry's chart and RS relative to > the market as a whole will help, but watching the individual players and > making note of the weaker players breaking down will give an additional > clue. On the other side of the coin, once the industry has gone through a > corrective phase (in your parlance, the industry chart would show basing and > then beginning a move out of a bottoming formation), you want to start > watching for leadership. The good stocks will start moving out ahead of the > pack. Once you get a couple of participants, that may be enough evidence to > show strong movement, rather than waiting for a C&H B/O of the industry > itself. I absolutely agree with you than any candidate for buying should > come from a rising group. Analyzing ALL players in the group of > institutional quality should be part of every buy and sell decision. > > Katherine > > > ----- Original Message ----- > From: "Andreas Himmelreich" > To: > Sent: Tuesday, December 11, 2001 3:23 PM > Subject: [CANSLIM] Analysis on Industry Groups and their technical patterns > > > > Hi, > > > > I know that I read it somewhere in WO Books that the Market drives > > individual stocks by 75% and the Industry Groups do drive individual > stocks > > as well 75%. > > That means, if the market is down (bear market), 3 out of 4 Stocks are > > usually down. > > And if the Industry is down, 3 out of 4 Stocks belonging to that industry > > are also down. Also WO states that he looks stocks in a group that are > > breaking out to before he buys a stock within this group. > > > > On Daily Graphs http://beta.dailygraphs.com you can chart industry groups > > and I think this is great --> > > > > Here is my working theorie, that I want to share with you: > > > > M (Market) --> Wait for follow through (nothing new) > > > > I (Industry) --> Look for uptrend of the Industry (Price and Relative > > Strength (RS)) > > --> Look for Patterns within the RS of the Industry Group (IG) > > --> Look for Patterns within the Price of the IG > > --> Look for Patterns where the Price of a Group is not changeging a lot > > (in the handle) but the RS improves and breaks out of a CWH (or other) > > pattern or makes new highs. I found this situation several times and > > within the next days the leading stocks of the IG started to break out > > upwards. > > --> Look for Breakouts of Price of the IG > > --> Be carefull if the IG has already a RS of 99 and looks overextended > > (why not use the rubberband sell rule) > > > > Stock Selection (Oneil, Boucher) > > > > --> We all know that (RS 80, EPS 80, ROI better then 17%, Low Dept etc., > > CWH etc.) Look for the strongest stocks in the group. > > If you missed a BO of a stock, look for the next stocks within the group > > that did not break out yet > > but has good fundamentals and a good pattern. > > > > Sceptical? Me too. But I found very good examples: > > > > Example 1) IG Bld-Resident/Commrcl --> > > > > Nice SWH (Soucer With Handle) of RS of the IG --> 09/05 - 11/30 > > Nice CWH of the Price of the IG --> 09/05 - 11/30 > > > > My working theorie is --> You could have been very well prepared for the > > breakout on --> 11/29, because the RS of the IG was spiking up the day > > before the breakout of the individual stocks. > > > > Further more --> NRV, MTH, MHO, MDL, DHI, BZH broke on 11/30 (the Break > > out of Price of the Industry Group and the Breakout of RS of the IG) > > You could have grabbed RYL and CTX on 12/04 and WLS, KBH, HOV on 12/05. > > > > Further Conclusions --> > > > > - The more individuall stocks of a group break out on one day the less the > > probability that the breakout fails > > - The better the fundamentals of a stock (especially Valuation and EPS, > but > > also RS) relative to the others in their group the less the probability > > that the breakout fails (of the individual stock you choosed). > > > > Example 2) Retail Consumer Electronic > > > > Nice CWH of the Price of the Group from 09/06 - 11/13 > > RS is spiking up in the Handle even the price of the group is not moving > > up. > > 11/13 was the breakout of the Group > > > > ON 11/15 (!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!) RSC broke out. > > > > Next Break out of the group was 11/26. On 11/29 ELBO broke out (!!!!!!!! > > !!!!!!!!!!!!!!!) > > > > > > Example 3) Telecommunications Equipment > > > > Kind of a SWH. Handle starts on 10/11. Price Breakout of the Group 11/13 > > and 12/05 > > > > Breakout of UTSI --> Breakout on 12/04 (on the next Day the Group broke > out > > again) > > Breakout of ECTX --> (better fundamentals then UTSI) 11/26 and 12/04 and > > 12/05 > > > > > > Example 4) False Breakout of ADVP > > > > Broke out on 10/15. > > > > Industry Group somehow broke out at the same day or the next day. BUT RS > of > > the Industry Group was literaly flat and made now new high. > > > > I know I am very excited and above examples are just luck and the odds are > > not like I describe them here. That is the reason why I writhe it to you > so > > if some > > of you want, you can look at this deeper and try to confirm or kill it. > > > > Thank you. > > > > Andreas > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > - > > -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, 11 Dec 2001 16:14:54 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] Analysis on Industry Groups and their technical patterns Hi Andreas, Thanks for pointing this out. >>Something tells me, that this is not always like this (at least this would > be wonderfull). Especially when it comes to (small cap) CANSLIM stocks. > I just found to many examples (which I will hack into an excel spreadsheet > in order to see if this is right or not) where this was not the case. > The uptrend might get supported by stocks in the group that do not meet > rigid canslim selection. I realized after reading your comments that there was an underlying assumption in my statement which I use, but did not state. That is, when I'm looking at the industry brethren to show strength or weakness, I'm only looking at stocks that meet bare minimum CANSLIM characteristics! This is something I've learned to do when evaluating group movement and just take for granted. It ties into earlier list discussions about finding out who the real competitors are, as well. Sometimes, what seems to be a lone wolf moving in a group is not so alone afterall. On analysis, it often happens that this stock is unfortunately stuck into a non-representative grouping. Once that is revealed, it makes group movement easier to ascertain. The software that I use (VectorVest) allows me to create "groups" of anything I chose, so this is a feature I often use. I believe that others on the list commented that HGS has this feature as well. There are times where I will look at *all* the group members, but most of the time they are filled with penny stocks or microcap stocks that I ignore. I know, for example, that a style preference would have one person vs the other fishing in a different sea, but I stay in a quadrant of the sea that lets me use my strengths. That's why someone like Tom and I would rarely hold the same stocks. That does not make his approach any more or less successful, he just likes fishing in backwater, I like Carmel Bay. As long as we catch big fish, we both get to have dinner. It is my experience, however, that as long as we're not talking about mass momentus hystericus, the stocks moving first are generally the strongest. The differential between numbers 1, 2, 3, 4 may be small enough in some cases that you can wait for the 3rd or 4th mover and still make a boatload of money. I often practice "let this one go by." One really good looking swimmer can be followed shortly by several more equally good looking swimmers. But, if I've done my homework and have targeted a stock with a really good "2 minute elevator ride speech," I'll take it when it breaks out, even if it is the first in the group. If the group hasn't confirmed the move and the market is iffy, this will only be a partial position. The bad news is, I have to wait for a pullback to put on the rest of my position. The good news is, if the group or the market isn't ready, I've risked far less than 1/2% of my capital. The better news is, these are usually my biggest winners. As a follow-up to the Market Wizard comment. I am constantly working at stacking the odds in my favor. If I chose, for example, to take an early entry based on technical pattern or on an as yet unconfirmed group movement, I am looking for the next area of technical support. If movement down to that support would be greater than 7-10%, I don't bite. This limits my downside risk, but allows me to enter a position without being whipsawed in a pullback to support. (BTW, this part of risk control is something new for me since early 2000, as technical analysis is not my strongest tool!) Katherine - ----- Original Message ----- From: "Andreas Himmelreich" To: Sent: Tuesday, December 11, 2001 4:51 PM Subject: AW: [CANSLIM] Analysis on Industry Groups and their technical patterns > Hi Katherine, > > Thank you. > > As we all I try to look for theories that really give an edge. > And this is the reason why I want look into your following statement deeper > (in the next days and weeks) --> > > "The good stocks will start moving out ahead of the > > pack. Once you get a couple of participants, that may be enough evidence > to > > show strong movement, rather than waiting for a C&H B/O of the industry > > itself. " > > Something tells me, that this is not always like this (at least this would > be wonderfull). Especially when it comes to (small cap) CANSLIM stocks. > I just found to many examples (which I will hack into an excel spreadsheet > in order to see if this is right or not) where this was not the case. > The uptrend might get supported by stocks in the group that do not meet > rigid canslim selection. > > > Here some stuff from Market Wizard Gill Blake that might be interesting in > this context --> > > "In researching the price behavior of individual stocks, I have found that > significant daily price changes (with relative strength) have about > a 55 percent change of being followed by a similar directional move on the > following day. After allowing for commissions and bid/ask spreads, that is > not a sufficient probability edge to be tradabel. > Now as an analogy, assume you have a stack of coins, and each has a 55% > chance of landing on heads. If you toss a single coin the odds of gettin > heads are 55%. > If you toss nine coins, the odds of getting more heads then tails go upt to > 62%. And if you toss ninetynine coins, the odds of gettingmore heads than > tails go up to about 75%. Its a function of the bionominal probability > distribution." > > So if a whole group moves, that might tell you something about the quality > of the breakout. > > See you > > Andreas > > > > > > > -----Ursprungliche Nachricht----- > > Von: Katherine Malm [SMTP:kmalm@earthlink.net] > > Gesendet am: Tuesday, December 11, 2001 9:40 PM > > An: canslim@lists.xmission.com > > Betreff: Re: [CANSLIM] Analysis on Industry Groups and their technical > patterns > > > > Hi Andreas, > > > > Excellent analysis!!!!! > > > > What you describe is extremely close to my own approach. Now that DGO is > > *finally* offering industry graphs, this will be far easier to do. I've > been > > using another product to do this for the last 4 years, so the specifics > of > > my approach are slightly different as a result. > > > > One thing I might add to your general analysis. When watching industries, > > you are really looking at a couple of things. First, is it extended > and/or > > getting ready to top out? Looking at the industry's chart and RS relative > to > > the market as a whole will help, but watching the individual players and > > making note of the weaker players breaking down will give an additional > > clue. On the other side of the coin, once the industry has gone through a > > corrective phase (in your parlance, the industry chart would show basing > and > > then beginning a move out of a bottoming formation), you want to start > > watching for leadership. The good stocks will start moving out ahead of > the > > pack. Once you get a couple of participants, that may be enough evidence > to > > show strong movement, rather than waiting for a C&H B/O of the industry > > itself. I absolutely agree with you than any candidate for buying should > > come from a rising group. Analyzing ALL players in the group of > > institutional quality should be part of every buy and sell decision. > > > > Katherine > > > > > > ----- Original Message ----- > > From: "Andreas Himmelreich" > > To: > > Sent: Tuesday, December 11, 2001 3:23 PM > > Subject: [CANSLIM] Analysis on Industry Groups and their technical > patterns > > > > > > > Hi, > > > > > > I know that I read it somewhere in WO Books that the Market drives > > > individual stocks by 75% and the Industry Groups do drive individual > > stocks > > > as well 75%. > > > That means, if the market is down (bear market), 3 out of 4 Stocks are > > > usually down. > > > And if the Industry is down, 3 out of 4 Stocks belonging to that > industry > > > are also down. Also WO states that he looks stocks in a group that are > > > breaking out to before he buys a stock within this group. > > > > > > On Daily Graphs http://beta.dailygraphs.com you can chart industry > groups > > > and I think this is great --> > > > > > > Here is my working theorie, that I want to share with you: > > > > > > M (Market) --> Wait for follow through (nothing new) > > > > > > I (Industry) --> Look for uptrend of the Industry (Price and Relative > > > Strength (RS)) > > > --> Look for Patterns within the RS of the Industry Group (IG) > > > --> Look for Patterns within the Price of the IG > > > --> Look for Patterns where the Price of a Group is not changeging a > lot > > > (in the handle) but the RS improves and breaks out of a CWH (or other) > > > pattern or makes new highs. I found this situation several times and > > > within the next days the leading stocks of the IG started to break out > > > upwards. > > > --> Look for Breakouts of Price of the IG > > > --> Be carefull if the IG has already a RS of 99 and looks overextended > > > (why not use the rubberband sell rule) > > > > > > Stock Selection (Oneil, Boucher) > > > > > > --> We all know that (RS 80, EPS 80, ROI better then 17%, Low Dept > etc., > > > CWH etc.) Look for the strongest stocks in the group. > > > If you missed a BO of a stock, look for the next stocks within the > group > > > that did not break out yet > > > but has good fundamentals and a good pattern. > > > > > > Sceptical? Me too. But I found very good examples: > > > > > > Example 1) IG Bld-Resident/Commrcl --> > > > > > > Nice SWH (Soucer With Handle) of RS of the IG --> 09/05 - 11/30 > > > Nice CWH of the Price of the IG --> 09/05 - 11/30 > > > > > > My working theorie is --> You could have been very well prepared for > the > > > breakout on --> 11/29, because the RS of the IG was spiking up the day > > > before the breakout of the individual stocks. > > > > > > Further more --> NRV, MTH, MHO, MDL, DHI, BZH broke on 11/30 (the > Break > > > out of Price of the Industry Group and the Breakout of RS of the IG) > > > You could have grabbed RYL and CTX on 12/04 and WLS, KBH, HOV on 12/05. > > > > > > Further Conclusions --> > > > > > > - The more individuall stocks of a group break out on one day the less > the > > > probability that the breakout fails > > > - The better the fundamentals of a stock (especially Valuation and EPS, > > but > > > also RS) relative to the others in their group the less the probability > > > that the breakout fails (of the individual stock you choosed). > > > > > > Example 2) Retail Consumer Electronic > > > > > > Nice CWH of the Price of the Group from 09/06 - 11/13 > > > RS is spiking up in the Handle even the price of the group is not > moving > > > up. > > > 11/13 was the breakout of the Group > > > > > > ON 11/15 (!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!) RSC broke > out. > > > > > > Next Break out of the group was 11/26. On 11/29 ELBO broke out > (!!!!!!!! > > > !!!!!!!!!!!!!!!) > > > > > > > > > Example 3) Telecommunications Equipment > > > > > > Kind of a SWH. Handle starts on 10/11. Price Breakout of the Group > 11/13 > > > and 12/05 > > > > > > Breakout of UTSI --> Breakout on 12/04 (on the next Day the Group broke > > out > > > again) > > > Breakout of ECTX --> (better fundamentals then UTSI) 11/26 and 12/04 > and > > > 12/05 > > > > > > > > > Example 4) False Breakout of ADVP > > > > > > Broke out on 10/15. > > > > > > Industry Group somehow broke out at the same day or the next day. BUT > RS > > of > > > the Industry Group was literaly flat and made now new high. > > > > > > I know I am very excited and above examples are just luck and the odds > are > > > not like I describe them here. That is the reason why I writhe it to > you > > so > > > if some > > > of you want, you can look at this deeper and try to confirm or kill it. > > > > > > Thank you. > > > > > > Andreas > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > - > > > -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. - - - -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, 11 Dec 2001 17:33:07 -0600 From: "Dave" Subject: [CANSLIM] Filter Criteria This is a multi-part message in MIME format. - ------=_NextPart_000_00C9_01C18269.E5333580 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Out of all the WON selection criteria what do you all use as "hard" = criteria (hurdles the stock must meet to make your list) versus "soft" = criteria (hurdles that the stock hasn't made but you can rationalize). = I need some consistent method to keep my list at reasonable levels and = am looking to the experts as to what they use. Thanks in advance for your advice - ------=_NextPart_000_00C9_01C18269.E5333580 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Out of all the WON selection criteria = what do you=20 all use as "hard" criteria (hurdles the stock must meet to make your = list)=20 versus "soft" criteria (hurdles that the stock hasn't made but you can=20 rationalize).  I need some consistent method to keep my list at = reasonable=20 levels and am looking to the experts as to what they use.
 
Thanks in advance for your=20 advice
- ------=_NextPart_000_00C9_01C18269.E5333580-- - - - -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, 11 Dec 2001 18:31:56 -0600 From: Subject: [CANSLIM] stacking the odds in my favor-buying before the pivot point This is a multi-part message in MIME format. - ------=_NextPart_000_0013_01C18272.1CDAD2B0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable one thing that might increase ones odds-is buying before the pivot point = is reach, if the stock has hugh volume, great technicals and = fundamentals. what do you all think??? david - ------=_NextPart_000_0013_01C18272.1CDAD2B0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
one thing that might increase ones = odds-is buying=20 before the pivot point is reach, if the stock has hugh volume, great = technicals=20 and fundamentals. what do you all think??? = david
- ------=_NextPart_000_0013_01C18272.1CDAD2B0-- - - - -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, 11 Dec 2001 20:45:19 -0500 From: "Pat" Subject: Re: [CANSLIM]"Rubberband Sell Rule" This is a multi-part message in MIME format. - ------=_NextPart_000_0031_01C18284.BF106060 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Katherine, Do you manually enter the data for each stock? Or is there a free source that will provide the necessary=20 data that one could copy & paste easily into the=20 Robberband Spreadsheet? Thanks for sharing the spreadsheet! Pat ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Monday, December 10, 2001 6:23 AM Subject: Re: [CANSLIM] PECS & "Rubberband Sell Rule" Hi Chris, I agree with you on the vague nature of WON's sell rule and it's the = reason that I was happy to have found these additional criteria. A stock = could easily rise 70% above the 200dMA, but if the price behaves as you = would expect, you'll see mostly accumulation days and the 200dMA will = rise with the price. That would be a good stock in my book! I keep 3 kinds of records related to buying and selling. First, I have = a buy and a sell checklist. All the appropriate items have to be checked = before I'll buy. When a sell rule is hit, out it goes. (The rubberband = rule, along with a couple of others are what I call "warning" sell = rules. I do not sell unconditionally on this trigger alone.) Second, I = make a notation in my trading journal that will state my general reason = for buying/selling along with other general observations about what is = going on that might have affected the decision. What I'm trying to do is = keep a record of my "mental state" when buying/selling. (The journal = itself contains more than buy/sell info.) Third, a printout of the chart = on the buy and sell date. Here I'll highlight all the appropriate = technicals, making note of industry RS and other things that don't show = on the DGO chart. The buy and sell charts get stapled together and put = into a trading journal. All of these things allow me to go back on a = regular basis and find weaknesses. It is through these kinds of reviews = that I am able to enhance a strategy, find errors or identify my hot = buttons. Believe me, there's plenty of those to contend with!=20 Katherine ----- Original Message -----=20 From: Chris Dempsey=20 To: canslim@lists.xmission.com=20 Sent: Sunday, December 09, 2001 11:49 PM Subject: RE: [CANSLIM] PECS & "Rubberband Sell Rule" Katherine, Thanks for the idea. Sell rule 34 has always bothered me. "Some = stocks can be sold when they are 70 to 100% above their 200-day. This in = many instances seemed to soon. This looks like it will help determine = which stocks. Have you done any analysis of you trades to determine the = accuracy of this formula. What records do you keep when you buy and sell a stock? Chris -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Friday, December 07, 2001 9:42 AM To: CANSLIM List Posting Subject: [CANSLIM] PECS Just so you guys don't blame this one on the "IBD curse"... Here's a good example of the "Rubberband Sell Rule" in action: PECS B/O on 11/14. Rubberband Sell Rule: If all three of these criteria are met, be prepared to sell, as = the price can fall 15-25%: (1) >125% above the recent base low AND (2) >70% above the 200 day MA AND (3) >25% above the 50 day MA. For PECS intraday 12/5/01 when P was $40.12: (1) recent base low $12.50, +221% (2) 200dMA $19.23, +108% (3) 50dMA $24.51, +64%. Based on that, on 12/5 price, your choices were:=20 (1) Sell all or portion of position (2) Intend to buy back as it returns to intermediate term trend (3) Move on to another position 12/6 was a distribution day, the first in its advance. This morning an analyst downgraded to hold based on valuation, = stock gapped down on open. So, depending on your choice, the next rule to kick in is the WON = rule for stocks moving up >=3D20% within 8 weeks after breakout: If a stock does this, hold on through the first correction. If you make this choice, you then just have to watch that the IT = trend is not violated as it makes its correction. If other sell rules kick in, out it goes. Katherine - ------=_NextPart_000_0031_01C18284.BF106060 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine,
Do you manually enter the data for each = stock?
Or is there a free source that will = provide=20 the necessary
data that one could copy & paste = easily into=20 the 
Robberband Spreadsheet?
 
Thanks for sharing the = spreadsheet!
Pat
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Monday, December 10, 2001 = 6:23=20 AM
Subject: Re: [CANSLIM] PECS = &=20 "Rubberband Sell Rule"

Hi Chris,
 
I agree with you on the vague nature = of WON's=20 sell rule and it's the reason that I was happy to have found these = additional=20 criteria. A stock could easily rise 70% above the 200dMA, but if the = price=20 behaves as you would expect, you'll see mostly accumulation days and = the=20 200dMA will rise with the price. That would be a good stock in my=20 book!
 
I keep 3 kinds of records = related to buying=20 and selling. First, I have a buy and a sell checklist. All the = appropriate=20 items have to be checked before I'll buy. When a sell rule is hit, out = it=20 goes. (The rubberband rule, along with a couple of others are what I = call=20 "warning" sell rules. I do not sell unconditionally on this trigger = alone.)=20 Second, I make a notation in my trading journal that will state my = general=20 reason for buying/selling along with other general observations about = what is=20 going on that might have affected the decision. What I'm trying to do = is keep=20 a record of my "mental state" when buying/selling. (The journal itself = contains more than buy/sell info.) Third, a printout of the = chart on=20 the buy and sell date. Here I'll highlight all the appropriate = technicals,=20 making note of industry RS and other things that don't show on the DGO = chart.=20 The buy and sell charts get stapled together and put into a = trading=20 journal. All of these things allow me to go back on a regular basis = and find=20 weaknesses. It is through these kinds of reviews that I am able to = enhance a=20 strategy, find errors or identify my hot buttons. Believe me, = there's=20 plenty of those to contend with!
 
Katherine
----- Original Message -----
From:=20 Chris Dempsey =
Sent: Sunday, December 09, = 2001 11:49=20 PM
Subject: RE: [CANSLIM] PECS = &=20 "Rubberband Sell Rule"

Katherine,
 
Thanks for the idea. Sell rule 34 has = always=20 bothered me. "Some stocks can be sold when they are 70 to 100% above = their=20 200-day. This in many instances seemed to soon. This looks like it = will help=20 determine which stocks. Have you done any analysis of you trades to=20 determine the accuracy of this formula.
 
What records do you keep when you buy and = sell a=20 stock?
 
Chris
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Friday, December 07, 2001 9:42 = AM
To:=20 CANSLIM List Posting
Subject: [CANSLIM]=20 PECS

Just so you guys don't blame this = one on the=20 "IBD curse"...
 
Here's a good example of the = "Rubberband Sell=20 Rule" in action:
 
PECS B/O on 11/14.
 
Rubberband Sell = Rule:
If all three of these criteria are met, be prepared to sell, = as the=20 price
can fall 15-25%:
(1) >125% above the recent base = low=20 AND
(2) >70% above the 200 day MA AND
(3) >25% above = the 50=20 day MA.
For PECS intraday 12/5/01 when P = was=20 $40.12:
(1) recent base low $12.50,=20 +221%
(2) 200dMA $19.23, = +108%
(3) 50dMA $24.51, = +64%.
 
Based on that, on 12/5 price, = your choices=20 were:=20
(1) Sell all or portion of=20 position
(2) Intend to buy back as it = returns to=20 intermediate term trend
(3) Move on to another=20 position
 
12/6 was a distribution day, the = first in its=20 advance.
 
This morning an analyst = downgraded to hold=20 based on valuation, stock gapped down on open.
 
So, depending on your choice, the = next rule=20 to kick in is the WON rule for stocks moving up >=3D20% within = 8 weeks=20 after breakout:
 
If a stock does this, hold on = through the=20 first correction.
 
If you make this choice, you then = just have=20 to watch that the IT trend is not violated as it makes its=20 correction.
 
If other sell rules kick in, out = it=20 goes.
 
Katherine
- ------=_NextPart_000_0031_01C18284.BF106060-- - - - -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 #1930 ****************************** 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.