From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1980 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 Friday, December 21 2001 Volume 02 : Number 1980 In this issue: [CANSLIM] KKD MNTG RE: [CANSLIM] KKD MNTG Re: [CANSLIM] IBD Winner Check Re: [CANSLIM] IBD Winner Check Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point ---------------------------------------------------------------------- Date: 21 Dec 2001 07:27:49 -0800 From: "Tim Fisher" Subject: [CANSLIM] KKD MNTG Given all the talk about KKD on the list I was surprised to see it broke out 2 days ago and did not get mentioned here. It's still buyable up to about 44.60 depending upon what you call the pivot (I'm using the failed b/o a few weeks ago). MNTG seems to be holding up as well after its b/o. Tim Fisher Ore-ROCK-On Rockhounding Web Site Pacific Fishery Biologists Information mailto:tim@OreRockOn.com WWW http://OreRockOn.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: Fri, 21 Dec 2001 10:36:16 -0500 From: "Cefaloni, John L Jr. [AMSTA-AR-WEA]" Subject: RE: [CANSLIM] KKD MNTG Tim, I noticed the b/o and bought a little. Really nice volume spurt. It's pulling back now, but volume appears more subdued. John C. - -----Original Message----- From: Tim Fisher [mailto:Tim@orerockon.com] Sent: Friday, December 21, 2001 10:28 AM To: canslim@mail.xmission.com Subject: [CANSLIM] KKD MNTG Given all the talk about KKD on the list I was surprised to see it broke out 2 days ago and did not get mentioned here. It's still buyable up to about 44.60 depending upon what you call the pivot (I'm using the failed b/o a few weeks ago). MNTG seems to be holding up as well after its b/o. Tim Fisher Ore-ROCK-On Rockhounding Web Site Pacific Fishery Biologists Information mailto:tim@OreRockOn.com WWW http://OreRockOn.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: Fri, 21 Dec 2001 09:38:37 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] IBD Winner Check This is a multi-part message in MIME format. - ------=_NextPart_000_00B3_01C18A03.4401FB00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Dave, Thanks for the great charts...so helpful to see this while working = through your example. I like that you've shown how you manage the risk = when there's a low volume breakout, in fact it seems it'd be a great = guideline to put into every CANSLIMers bag of tricks. I've learned = through trial by fire that 7-8% is a sucker's number if applied in all = cases. Eric T has also mentioned this same point in several of his = discussions. I can remember at the IBD seminars hearing both Bryan and = Gil mention that they can tell immediately if something is going to work = or not, that meant that they were often out of the buy long before the = 7-8% rule kicked in. Here, you've given a great way to identify this = very phenomenon. Thanks. Katherine ----- Original Message -----=20 From: Dave Squires=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 8:51 AM Subject: Re: [CANSLIM] IBD Winner Check Hi Katherine, I would agree 10/24 was a confirming move but if you were strictly = applying CS technicals you would not have been in the stock on the BO = and buying the all time high with the recommended WON stop leaves you as = a sitting duck. I say this because the handle breakout came at the end = of the day and it was very clear the volume numbers were not going to be = met. If I end up in a light volume breakout I view it as high risk and = immediately pull my stop up to 4% and give the stock 2-3 days to confirm = price with volume. That's exactly what I would have done in this case IF = it was an early BO that didn't meet the volume numbers by days end. In = this case it was clearly not even close so why risk it. So again IBD is = putting its own self interest ahead of the interest of new CANSLIMers by = showing clear rule violations and making them fell dumb in the process.=20 DSquires ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Sunday, December 02, 2001 11:38 AM Subject: Re: [CANSLIM] IBD Winner Check Hi Tom, I'd have to disagree on MGAM. It started correcting 7/5 at 23.10. = Began a C&H formation, then started a handle 10/10 at 20.45. Just where = you'd want to see it, within a certain percent of the old high. The = handle drifted lower, but volume was a little mixed, I'd attribute that = to "M." It didn't form a "perfect" B/O, as it drifted up a couple of = days on low volume (again "M" getting its legs played a part), but the = B/O on 10/24 on volume was a confirming move. That's a 66% move out of = the breakout with, so far, good P/V action in the upmove, decent = fundamentals, and a confirming industry group move. Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Sunday, December 02, 2001 11:24 AM Subject: Re: [CANSLIM] IBD Winner Check Earl, I don't think you need to lower your standards, I thing IBD = needs to quit telling us about all the missed opportunities after the = fact! Most of these "winners" could not have been bought / caught using = WON rules for CANSLIM. As just one example, MGAM is a huge gainer, but = to have achieved the best return on it, you had to buy off the one week = base at 20, where the breakout that started the run was below ADV. = That's hardly a "valid" entry point, and it's the best I see since it = bottomed. Your only other choice on most of these was guessing where it = bottomed, then playing it on a pure momentum aspect. That's not CANSLIM = either.=20 I would welcome the day when IBD starts analyzing CURRENT chart = patterns, and pointing out to us dummies things we should be seeing NOW! Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: esetser=20 To: canslim@xmission.com=20 Sent: Saturday, December 01, 2001 12:27 AM Subject: [CANSLIM] IBD Winner Check Did anyone else notice that the IBD called out some winners to = show that this market isn't so bad after all? This was in Wed Big = Picture, and I took some time to see what I've been missing. The stocks = mentioned were examples of breakouts that IBD says "a growing contingent (of = stocks) is acting fine." The list was: AZO BBI BPRX CACI DYII GNSS GTK ITRI JAKK KRON LOW MCAF MIKE MGAM PECS I looked through the stocks and found very few that I would have = purchased. Maybe I need to lower my standards? There were some strange characteristics: Group Strength D, 4 week base, EPS=3D51, = several stocks with only the last quarter with good earnings growth, one stock that = gapped from the low of it's base to a new 52 week high in one day (nice = right side of the cliff, er CUP?), etc. Overall, out of these 15 stocks, I = only saw maybe 3 or 4 that I would have considered at the time. In fact, = I think the stocks we have seen failing would generally look much better = to me that these. Anyone want to take a look and see if they agree? =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. - ------=_NextPart_000_00B3_01C18A03.4401FB00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Dave,
 
Thanks for the great charts...so helpful to see this while working = through=20 your example. I like that you've shown how you manage the risk when = there's a=20 low volume breakout, in fact it seems it'd be a great guideline to put = into=20 every CANSLIMers bag of tricks. I've learned through trial by fire that = 7-8% is=20 a sucker's number if applied in all cases. Eric T has also mentioned = this same=20 point in several of his discussions. I can remember at the IBD seminars = hearing=20 both Bryan and Gil mention that they can tell immediately if something = is going=20 to work or not, that meant that they were often out of the buy long = before the=20 7-8% rule kicked in. Here, you've given a great way to identify this = very=20 phenomenon. Thanks.
 
Katherine
----- Original Message -----
From:=20 Dave=20 Squires
Sent: Friday, December 21, 2001 = 8:51=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Hi Katherine,
 
I would agree 10/24 was a confirming = move but if=20 you were strictly applying CS technicals you would not have = been in the=20 stock on the BO and buying the all time high with the recommended WON = stop=20 leaves you as a sitting duck. I say this because the handle breakout = came at=20 the end of the day and it was very clear the volume numbers were not = going to=20 be met. If I end up in a light volume breakout I view it as high risk = and=20 immediately pull my stop up to 4% and give the stock 2-3 days to = confirm price=20 with volume. That's exactly what I would have done in this case IF it = was an=20 early BO that didn't meet the volume numbers by days end. In this case = it was=20 clearly not even close so why risk it. So again IBD is putting its own = self=20 interest ahead of the interest of new CANSLIMers by showing clear rule = violations and making them fell dumb in the process.
 
DSquires
 
 
 
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Sunday, December 02, = 2001 11:38=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Hi Tom,
 
I'd have to disagree on MGAM. It = started=20 correcting 7/5 at 23.10. Began a C&H formation, then started a = handle=20 10/10 at 20.45. Just where you'd want to see it, within a certain = percent of=20 the old high. The handle drifted lower, but volume was a little = mixed, I'd=20 attribute that to "M." It didn't form a "perfect" B/O, as it drifted = up a=20 couple of days on low volume (again "M" getting its legs played a = part), but=20 the B/O on 10/24 on volume was a confirming move. That's a 66% move = out of=20 the breakout with, so far, good P/V action in the upmove, decent=20 fundamentals, and a confirming industry group move.
 
Katherine
----- Original Message ----- =
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com= =20
Sent: Sunday, December 02, = 2001 11:24=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Earl, I don't think you need to lower your = standards, I=20 thing IBD needs to quit telling us about all the missed = opportunities=20 after the fact!
 
Most of these "winners" could not have been = bought /=20 caught using WON rules for CANSLIM. As just one example, MGAM is a = huge=20 gainer, but to have achieved the best return on it, you had to buy = off the=20 one week base at 20, where the breakout that started the run was = below=20 ADV. That's hardly a "valid" entry point, and it's the best I see = since it=20 bottomed.
 
Your only other choice on most of these was = guessing=20 where it bottomed, then playing it on a pure momentum aspect. = That's not=20 CANSLIM either.
 
I would welcome the day when IBD starts = analyzing=20 CURRENT chart patterns, and pointing out to us dummies things we = should be=20 seeing NOW!
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 esetser=20
Sent: Saturday, December = 01, 2001=20 12:27 AM
Subject: [CANSLIM] IBD = Winner=20 Check

Did anyone else notice that the IBD called out = some=20 winners to show that
this market isn't so bad after = all?  This=20 was in Wed Big Picture, and I
took some time to see what I've = been=20 missing.  The stocks mentioned were
examples of = breakouts that=20 IBD says "a growing contingent (of stocks) is
acting=20 fine."

The list=20 = was:

AZO
BBI
BPRX
CACI
DYII
GNSS
GTK
ITRI
= JAKK
KRON
LOW
MCAF
MIKE
MGAM
PECS

I=20 looked through the stocks and found very few that I would have=20 purchased.
 Maybe I need to lower my standards?  = There were=20 some strange
characteristics: Group Strength D, 4 week base, = EPS=3D51,=20 several stocks with
only the last quarter with good earnings = growth,=20 one stock that gapped from
the low of it's base to a new 52 = week high=20 in one day (nice right side of
the cliff, er CUP?), = etc. =20 Overall, out of these 15 stocks, I only saw
maybe 3 or 4 that = I would=20 have considered at the time.  In fact, I think
the = stocks we=20 have seen failing would generally look much better to me=20 that
these.  Anyone want to take a look and see if they=20 agree?
 

-
-To subscribe/unsubscribe, email = "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 = email.
- ------=_NextPart_000_00B3_01C18A03.4401FB00-- - - - -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: Fri, 21 Dec 2001 11:15:06 -0500 From: "Dan Forant" Subject: Re: [CANSLIM] IBD Winner Check This is a multi-part message in MIME format. - ------=_NextPart_000_002F_01C18A10.BEBC3600 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable What about selling an iffy stock 1/3 of the position with gains, then if = a severe pullback occurs to the stop, the loss is far less. DanF ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 10:38 AM Subject: Re: [CANSLIM] IBD Winner Check Hi Dave, Thanks for the great charts...so helpful to see this while working = through your example. I like that you've shown how you manage the risk = when there's a low volume breakout, in fact it seems it'd be a great = guideline to put into every CANSLIMers bag of tricks. I've learned = through trial by fire that 7-8% is a sucker's number if applied in all = cases. Eric T has also mentioned this same point in several of his = discussions. I can remember at the IBD seminars hearing both Bryan and = Gil mention that they can tell immediately if something is going to work = or not, that meant that they were often out of the buy long before the = 7-8% rule kicked in. Here, you've given a great way to identify this = very phenomenon. Thanks. Katherine ----- Original Message -----=20 From: Dave Squires=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 8:51 AM Subject: Re: [CANSLIM] IBD Winner Check Hi Katherine, I would agree 10/24 was a confirming move but if you were strictly = applying CS technicals you would not have been in the stock on the BO = and buying the all time high with the recommended WON stop leaves you as = a sitting duck. I say this because the handle breakout came at the end = of the day and it was very clear the volume numbers were not going to be = met. If I end up in a light volume breakout I view it as high risk and = immediately pull my stop up to 4% and give the stock 2-3 days to confirm = price with volume. That's exactly what I would have done in this case IF = it was an early BO that didn't meet the volume numbers by days end. In = this case it was clearly not even close so why risk it. So again IBD is = putting its own self interest ahead of the interest of new CANSLIMers by = showing clear rule violations and making them fell dumb in the process.=20 DSquires ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Sunday, December 02, 2001 11:38 AM Subject: Re: [CANSLIM] IBD Winner Check Hi Tom, I'd have to disagree on MGAM. It started correcting 7/5 at 23.10. = Began a C&H formation, then started a handle 10/10 at 20.45. Just where = you'd want to see it, within a certain percent of the old high. The = handle drifted lower, but volume was a little mixed, I'd attribute that = to "M." It didn't form a "perfect" B/O, as it drifted up a couple of = days on low volume (again "M" getting its legs played a part), but the = B/O on 10/24 on volume was a confirming move. That's a 66% move out of = the breakout with, so far, good P/V action in the upmove, decent = fundamentals, and a confirming industry group move. Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Sunday, December 02, 2001 11:24 AM Subject: Re: [CANSLIM] IBD Winner Check Earl, I don't think you need to lower your standards, I thing = IBD needs to quit telling us about all the missed opportunities after = the fact! Most of these "winners" could not have been bought / caught = using WON rules for CANSLIM. As just one example, MGAM is a huge gainer, = but to have achieved the best return on it, you had to buy off the one = week base at 20, where the breakout that started the run was below ADV. = That's hardly a "valid" entry point, and it's the best I see since it = bottomed. Your only other choice on most of these was guessing where it = bottomed, then playing it on a pure momentum aspect. That's not CANSLIM = either.=20 I would welcome the day when IBD starts analyzing CURRENT chart = patterns, and pointing out to us dummies things we should be seeing NOW! Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: esetser=20 To: canslim@xmission.com=20 Sent: Saturday, December 01, 2001 12:27 AM Subject: [CANSLIM] IBD Winner Check Did anyone else notice that the IBD called out some winners to = show that this market isn't so bad after all? This was in Wed Big = Picture, and I took some time to see what I've been missing. The stocks = mentioned were examples of breakouts that IBD says "a growing contingent (of = stocks) is acting fine." The list was: AZO BBI BPRX CACI DYII GNSS GTK ITRI JAKK KRON LOW MCAF MIKE MGAM PECS I looked through the stocks and found very few that I would = have purchased. Maybe I need to lower my standards? There were some strange characteristics: Group Strength D, 4 week base, EPS=3D51, = several stocks with only the last quarter with good earnings growth, one stock = that gapped from the low of it's base to a new 52 week high in one day (nice = right side of the cliff, er CUP?), etc. Overall, out of these 15 stocks, I = only saw maybe 3 or 4 that I would have considered at the time. In = fact, I think the stocks we have seen failing would generally look much = better to me that these. Anyone want to take a look and see if they agree? =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. - ------=_NextPart_000_002F_01C18A10.BEBC3600 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
What about selling an iffy stock 1/3 of = the=20 position with gains, then if a severe pullback occurs to the stop, = the loss=20 is far less.
 
DanF
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Friday, December 21, 2001 = 10:38=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Hi Dave,
 
Thanks for the great charts...so helpful to see this while = working=20 through your example. I like that you've shown how you manage the risk = when=20 there's a low volume breakout, in fact it seems it'd be a great = guideline to=20 put into every CANSLIMers bag of tricks. I've learned through trial by = fire=20 that 7-8% is a sucker's number if applied in all cases. Eric T has = also=20 mentioned this same point in several of his discussions. I can = remember at the=20 IBD seminars hearing both Bryan and Gil mention that they can tell = immediately=20 if something is going to work or not, that meant that they were often = out of=20 the buy long before the 7-8% rule kicked in. Here, you've given a = great way to=20 identify this very phenomenon. Thanks.
 
Katherine
----- Original Message -----
From:=20 Dave=20 Squires
Sent: Friday, December 21, = 2001 8:51=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Hi Katherine,
 
I would agree 10/24 was a = confirming move but=20 if you were strictly applying CS technicals you would not have = been in=20 the stock on the BO and buying the all time high with the = recommended WON=20 stop leaves you as a sitting duck. I say this because the handle = breakout=20 came at the end of the day and it was very clear the volume numbers = were not=20 going to be met. If I end up in a light volume breakout I view it as = high=20 risk and immediately pull my stop up to 4% and give the stock 2-3 = days to=20 confirm price with volume. That's exactly what I would have done in = this=20 case IF it was an early BO that didn't meet the volume numbers by = days end.=20 In this case it was clearly not even close so why risk it. So again = IBD is=20 putting its own self interest ahead of the interest of new = CANSLIMers by=20 showing clear rule violations and making them fell dumb in the = process.=20
 
DSquires
 
 
 
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Sunday, December 02, = 2001 11:38=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

Hi Tom,
 
I'd have to disagree on MGAM. It = started=20 correcting 7/5 at 23.10. Began a C&H formation, then started a = handle=20 10/10 at 20.45. Just where you'd want to see it, within a certain = percent=20 of the old high. The handle drifted lower, but volume was a little = mixed,=20 I'd attribute that to "M." It didn't form a "perfect" B/O, as it = drifted=20 up a couple of days on low volume (again "M" getting its legs = played a=20 part), but the B/O on 10/24 on volume was a confirming move. = That's a 66%=20 move out of the breakout with, so far, good P/V action in the = upmove,=20 decent fundamentals, and a confirming industry group = move.
 
Katherine
----- Original Message ----- =
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com= =20
Sent: Sunday, December = 02, 2001=20 11:24 AM
Subject: Re: [CANSLIM] = IBD Winner=20 Check

Earl, I don't think you need to lower your = standards,=20 I thing IBD needs to quit telling us about all the missed = opportunities=20 after the fact!
 
Most of these "winners" could not have been = bought /=20 caught using WON rules for CANSLIM. As just one example, MGAM is = a huge=20 gainer, but to have achieved the best return on it, you had to = buy off=20 the one week base at 20, where the breakout that started the run = was=20 below ADV. That's hardly a "valid" entry point, and it's the = best I see=20 since it bottomed.
 
Your only other choice on most of these was = guessing=20 where it bottomed, then playing it on a pure momentum aspect. = That's not=20 CANSLIM either.
 
I would welcome the day when IBD starts = analyzing=20 CURRENT chart patterns, and pointing out to us dummies things we = should=20 be seeing NOW!
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 esetser=20
Sent: Saturday, = December 01, 2001=20 12:27 AM
Subject: [CANSLIM] IBD = Winner=20 Check

Did anyone else notice that the IBD called out = some=20 winners to show that
this market isn't so bad after = all?  This=20 was in Wed Big Picture, and I
took some time to see what = I've been=20 missing.  The stocks mentioned were
examples of = breakouts that=20 IBD says "a growing contingent (of stocks) is
acting=20 fine."

The list=20 = was:

AZO
BBI
BPRX
CACI
DYII
GNSS
GTK
ITRI
= JAKK
KRON
LOW
MCAF
MIKE
MGAM
PECS

I=20 looked through the stocks and found very few that I would have = purchased.
 Maybe I need to lower my standards?  = There=20 were some strange
characteristics: Group Strength D, 4 week = base,=20 EPS=3D51, several stocks with
only the last quarter with = good=20 earnings growth, one stock that gapped from
the low of it's = base to=20 a new 52 week high in one day (nice right side of
the = cliff, er=20 CUP?), etc.  Overall, out of these 15 stocks, I only = saw
maybe=20 3 or 4 that I would have considered at the time.  In = fact, I=20 think
the stocks we have seen failing would generally look = much=20 better to me that
these.  Anyone want to take a look = and see=20 if they agree?
 

-
-To = subscribe/unsubscribe, email=20 "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 = email.
- ------=_NextPart_000_002F_01C18A10.BEBC3600-- - - - -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: Fri, 21 Dec 2001 10:16:43 -0600 From: "Dave Squires" Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point This is a multi-part message in MIME format. - ------=_NextPart_000_00A0_01C18A08.96DCAAA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable >>I still think that these things could be done with stop-limit orders = for entry and therefore wouldn't require screen-sitting all day long.<< I agreed. I have said this many times before on this and other CS lists. = While I am skeptical about stop limits I think stop market orders placed = after the first 15-30 minutes will cover people who can't watch the = screen all day or set alarms. CS requires very good timing and buying = the next day is often a recipe for a stop out on any normal pullback or = pivot test. I believe most serious IT traders are now buying before the = breakout as it has become a very obvious point. Still in a good market = with quality leadership the handle high pivot will work fine. If you = don't have constant access to the market buying before the break can be = dangerous because you don't know the volume situation and you are = technically buying the top of a trading range, which is a dangerous = entry if a breakout does not result.=20 DSquires ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 9:07 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the = pivot point Good question, Warren. It is at this very spot where "theory" and = "practice" meet that the individual has to apply some reasonable = assumptions, analytical tools, and executable steps. A fancy way of = saying, "I know that price has a probability of moving up when demand = outstrips supply, and I can use chart patterns to identify that point." = But....for each person, that "point" may be a little different. I think = that's what Tom has been referring to in his own posts. He has a comfort = with microcaps and under-followed stocks in general, so he has adjusted = his entries to match the typical behavior of these stocks. As I have = become more comfortable with technical patterns and more confident in my = own candidate selection process, I have modified these entries a bit. I = am much more willing to take entries on patterns other than the = traditional C&H or flat base near old highs. I control risk by = decreasing my lot size and then adding to positions as the stock = continues to show strength and then pulls back to the intermediate term = trend. That's not to say I don't have to pull the plug every now and = then, and then possibly re-enter when the smoke clears. But that's about = personal style in the spirit of CANSLIM and in the spirit of "the = balance between supply and demand." In general, I still think that these = things could be done with stop-limit orders for entry and therefore = wouldn't require screen-sitting all day long. I have the luxury of being = at home all day as well, but I really don't find it interesting to = "watch" the market. I let my alarms tell me when/if the time is near, = then place a market order when it's right. Again, personal style, but = not a requirement. Katherine ----- Original Message -----=20 From: Warren Keuffel=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 8:47 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before = the pivot point Katherine, This is the Theory, and it is Good. But in Practice, being able to identify the B/O and get in before it is too extended is where the rubber really meets the road. Hence, I am starting to favor an = earlier entry (and I believe Tom mentioned that he does this as well) = because IMHO only those glued to their screens all day long, with = sophisticated alarms, etc. can react quickly enough to act at the ideal entry = point. Maybe it's not as hard as I make it out to be, but I have not had = many successes with ideal entry points, and I work from home so am seldom = far from my computer. How about you? Are you able to repeatably time = your entries optimally? Warren Katherine Malm wrote: > (1) The idea behind waiting for a good stock to form a solid base = and > then break out on volume is to identify that magical point at = which > Demand outstrips Supply and Price is pushed higher--essentially = the > old Supply/Demand curve from economics class. Assuming the lion's > share of sellers have been exhausted and the stock is one that = people > would wish to own, the theory is that any additional demand for = the > stock will push the price further. In order for the Price to = continue > on, the underlying fundamentals that create value in the company = have > got to be sound. So from this point of view, waiting for the B/O = is > stacking the odds in your favor. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_00A0_01C18A08.96DCAAA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
 >>I still think that these things could be done with = stop-limit=20 orders for entry and therefore wouldn't require screen-sitting all day=20 long.<<
 
I agreed. I have said this many times = before on=20 this and other CS lists. While I am skeptical about stop limits I think = stop=20 market orders placed after the first 15-30 minutes will cover = people who=20 can't watch the screen all day or set alarms. CS requires very good = timing and=20 buying the next day is often a recipe for a stop out on any normal = pullback=20 or pivot test. I believe most serious IT traders are now buying before = the=20 breakout as it has become a very obvious point. Still in a good market = with=20 quality leadership the handle high pivot will work fine. If you don't = have=20 constant access to the market buying before the break can be dangerous = because=20 you don't know the volume situation and you are technically buying the = top of a=20 trading range, which is a dangerous entry if a breakout does not result. =
 
DSquires
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Friday, December 21, 2001 = 9:07=20 AM
Subject: Re: [CANSLIM] stacking = the odds=20 in my favor-buying before the pivot point

Good question, Warren. It is at this very spot where "theory" and = "practice" meet that the individual has to apply some reasonable = assumptions,=20 analytical tools, and executable steps. A fancy way of saying, "I know = that=20 price has a probability of moving up when demand outstrips supply, and = I can=20 use chart patterns to identify that point." But....for each person, = that=20 "point" may be a little different. I think that's what Tom has been = referring=20 to in his own posts. He has a comfort with microcaps and = under-followed stocks=20 in general, so he has adjusted his entries to match the typical = behavior of=20 these stocks. As I have become more comfortable with technical = patterns and=20 more confident in my own candidate selection process, I have modified = these=20 entries a bit. I am much more willing to take entries on patterns = other than=20 the traditional C&H or flat base near old highs. I control risk by = decreasing my lot size and then adding to positions as the stock = continues to=20 show strength and then pulls back to the intermediate term trend. = That's not=20 to say I don't have to pull the plug every now and then, and then = possibly=20 re-enter when the smoke clears. But that's about personal style in the = spirit=20 of CANSLIM and in the spirit of "the balance between supply and = demand." In=20 general, I still think that these things could be done with stop-limit = orders=20 for entry and therefore wouldn't require screen-sitting all day long. = I have=20 the luxury of being at home all day as well, but I really don't find = it=20 interesting to "watch" the market. I let my alarms tell me when/if the = time is=20 near, then place a market order when it's right. Again, personal = style, but=20 not a requirement.
 
Katherine
----- Original Message -----
From:=20 Warren=20 Keuffel
Sent: Friday, December 21, = 2001 8:47=20 AM
Subject: Re: [CANSLIM] = stacking the=20 odds in my favor-buying before the pivot point

Katherine,

This is the Theory, and it is = Good. =20 But in Practice, being able to
identify the B/O and get in before = it is=20 too extended is where the
rubber really meets the road.  = Hence, I am=20 starting to favor an earlier
entry (and I believe Tom mentioned = that he=20 does this as well) because
IMHO only those glued to their screens = all day=20 long, with sophisticated
alarms, etc. can react quickly enough to = act at=20 the ideal entry point.

Maybe it's not as hard as I make it = out to be,=20 but I have not had many
successes with ideal entry points, and I = work=20 from home so am seldom far
from my computer.  How about = you? =20 Are you able to repeatably time your
entries=20 optimally?

Warren

Katherine Malm=20 wrote:

<snip>

>  (1) The idea behind = waiting for=20 a good stock to form a solid base and
> then break out on = volume is to=20 identify that magical point at which
> Demand outstrips Supply = and=20 Price is pushed higher--essentially the
> old Supply/Demand = curve from=20 economics class.  Assuming the lion's
> share of  = sellers=20 have been exhausted and the stock is one that people
> would = wish to=20 own, the theory is that any additional demand for the
> stock = will=20 push the price further. In order for the Price to continue
> = on, the=20 underlying fundamentals that create value in the company = have
> got to=20 be sound. So from this point of view, waiting for the B/O is
> = stacking the odds in your = favor.

<snip>



-
-To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your = email.
- ------=_NextPart_000_00A0_01C18A08.96DCAAA0-- - - - -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 #1980 ****************************** 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.