From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1981 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 1981 In this issue: Re: [CANSLIM] IBD Winner Check AW: [CANSLIM] stacking the odds in my favor-buying before the pivot point Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point Re: [CANSLIM] Industry analysis technique/tools? Was: Point of View: Why bother with fundamentals? Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point A Great Gift For DVD Movie Users! BGCWKVF Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point ---------------------------------------------------------------------- Date: Fri, 21 Dec 2001 10:29:09 -0600 From: "Dave Squires" Subject: Re: [CANSLIM] IBD Winner Check This is a multi-part message in MIME format. - ------=_NextPart_000_00A8_01C18A0A.53694B00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable For me it is a question of time frame. If I am taking an intermediate = time frame trade I will use IT time frame stops and trails. So even = though the stock is showing a light volume breakout I don't want to lose = any of my position until I get a signal on the daily or maybe 60-min = time frame (i.e. stock dropping on volume, not moving on volume or = effortlessly recrossing the pivot). In my experience, many light volume = breakouts confirm the next day if they are good breakouts. It took 2 = days with MGAM. I think your rule is just as good for someone that is = very risk adverse.=20 DSquires ----- Original Message -----=20 From: Dan Forant=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 10:15 AM Subject: Re: [CANSLIM] IBD Winner Check 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_00A8_01C18A0A.53694B00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
For me it is a question of time frame. = If I am=20 taking an intermediate time frame trade I will use IT time frame stops = and=20 trails. So even though the stock is showing a light volume breakout I = don't want=20 to lose any of my position until I get a signal on the daily or maybe = 60-min=20 time frame (i.e. stock dropping on volume, not moving on volume or = effortlessly=20 recrossing the pivot). In my experience, many light volume breakouts = confirm the=20 next day if they are good breakouts. It took 2 days with MGAM. I think = your rule=20 is just as good for someone that is very risk adverse.
 
DSquires
----- Original Message -----
From:=20 Dan=20 Forant
To: canslim@lists.xmission.com=
Sent: Friday, December 21, 2001 = 10:15=20 AM
Subject: Re: [CANSLIM] IBD = Winner=20 Check

What about selling an iffy stock 1/3 = of the=20 position with gains, then if a severe pullback occurs to the = stop, the=20 loss 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=20 the IBD seminars hearing both Bryan and Gil mention that they can = tell=20 immediately if something is going to work or not, that meant that = they were=20 often out of the buy long before the 7-8% rule kicked in. Here, = you've given=20 a great way to identify this very phenomenon. Thanks.
 
Katherine
----- Original Message ----- =
From:=20 Dave=20 Squires
To: canslim@lists.xmission.com= =20
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=20 been in the stock on the BO and buying the all time high with = the=20 recommended WON stop leaves you as a sitting duck. I say this = because the=20 handle breakout came at the end of the day and it was very clear = the=20 volume numbers were not going to be met. If I end up in a light = volume=20 breakout I view it as high risk and immediately pull my stop up to = 4% and=20 give the stock 2-3 days to confirm price with volume. That's = exactly what=20 I would have done in this case IF it was an early BO that didn't = meet the=20 volume numbers by days end. In this case it was clearly not even = close so=20 why risk it. So again IBD is putting its own self interest ahead = of the=20 interest of new CANSLIMers by showing clear rule violations and = making=20 them fell dumb in the process.
 
DSquires
 
 
 
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Sunday, December = 02, 2001=20 11:38 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=20 handle 10/10 at 20.45. Just where you'd want to see it, within a = certain=20 percent of the old high. The handle drifted lower, but volume = was a=20 little mixed, I'd attribute that to "M." It didn't form a = "perfect" B/O,=20 as it drifted up a couple of days on low volume (again "M" = getting its=20 legs played a part), but the B/O on 10/24 on volume was a = confirming=20 move. That's a 66% move out of the breakout with, so far, good = P/V=20 action in the upmove, decent fundamentals, and a confirming = industry=20 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, I thing IBD needs to quit telling us about all the = missed=20 opportunities 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=20 huge gainer, but to have achieved the best return on it, you = had to=20 buy off the one week base at 20, where the breakout that = started the=20 run was below ADV. That's hardly a "valid" entry point, and = it's the=20 best I see 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=20 not CANSLIM either.
 
I would welcome the day when IBD starts = analyzing=20 CURRENT chart patterns, and pointing out to us dummies things = we=20 should be seeing NOW!
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 esetser
To: canslim@xmission.com
Sent: Saturday, = December 01,=20 2001 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? =20 This was in Wed Big Picture, and I
took some time to see = what=20 I've been missing.  The stocks mentioned = were
examples of=20 breakouts that IBD says "a growing contingent (of stocks)=20 is
acting 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=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=20 to a new 52 week high in one day (nice right side of
the = cliff,=20 er CUP?), etc.  Overall, out of these 15 stocks, I only = saw
maybe 3 or 4 that I would have considered at the = time. =20 In fact, I think
the stocks we have seen failing would = generally=20 look much better to me that
these.  Anyone want to = take a=20 look and see if they agree?
 

-
-To=20 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_00A8_01C18A0A.53694B00-- - - - -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 18:23:18 +0100 From: Andreas Himmelreich Subject: AW: [CANSLIM] stacking the odds in my favor-buying before the pivot point " I believe most serious IT traders are now buying before the breakout as it has become a very obvious point" So how do you determine this "obvious" point? > -----Ursprungliche Nachricht----- > Von: Dave Squires [SMTP:dcsquires1@home.com] > Gesendet am: Friday, December 21, 2001 5:17 PM > An: canslim@lists.xmission.com > Betreff: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point > > >>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. > > DSquires > ----- Original Message ----- > From: Katherine Malm > To: canslim@lists.xmission.com > 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 ----- > From: Warren Keuffel > To: canslim@lists.xmission.com > 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 sophisti cated > 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. > << Datei: ATT00004.htm >> - - - -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 11:36:00 -0600 From: "Dave Squires" Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point The obvious point is the top of the right side of the cup or the handle high. If you are dealing with a flat base it would be the spot where the majority of the resistance at the base top is overcome. For a double bottom with a handle it's the handle high. If is has no handle it's the middle of the W. For an other "base" it's usually the spot where the major resistance is overcome. These are obvious points because WON, et al have taught breakout buying for many years now and the 90's were a breakout traders utopia. DSquires - ----- Original Message ----- From: "Andreas Himmelreich" To: Sent: Friday, December 21, 2001 11:23 AM Subject: AW: [CANSLIM] stacking the odds in my favor-buying before the pivot point > " I believe most serious IT traders are now buying before the breakout as > it has become a very obvious point" > > So how do you determine this "obvious" point? > > > -----Ursprungliche Nachricht----- > > Von: Dave Squires [SMTP:dcsquires1@home.com] > > Gesendet am: Friday, December 21, 2001 5:17 PM > > An: canslim@lists.xmission.com > > Betreff: Re: [CANSLIM] stacking the odds in my favor-buying before the > pivot point > > > > >>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. > > > > DSquires > > ----- Original Message ----- > > From: Katherine Malm > > To: canslim@lists.xmission.com > > 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 ----- > > From: Warren Keuffel > > To: canslim@lists.xmission.com > > 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 sophisti > cated > > 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. > > << Datei: ATT00004.htm >> > > - > -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 10:57:46 -0700 From: Warren Keuffel Subject: Re: [CANSLIM] Industry analysis technique/tools? Was: Point of View: Why bother with fundamentals? We could set up a web page somewhere and write an input/database program that would divide the weekly update chores among 5 or 10 people (e.g., current rank of 20 industries assigned to you). It could automatically generate a file that could be imported into Excel. I could do it but I wouldn't want to undertake the work without a commitment from a number of people that they would do the weekly inputs. Warren Jerry Sparrow wrote: > I am in the procees of reworking an excel file that Norman had started > showing Industry Groups. I am going back to use ratings from the Tuesday > edition of the paper as it appears that this may be best. The workbook also > includes a graph for each industry. I plan on updating the sheet every > Tuesday night to graphically show which industries are moving up. I have > compiled information back to August, just haven't got it all typed in. > Maybe I'll get time over the break to finish. - - - -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 11:13:22 -0700 From: "Patrick Wahl" Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point I have been wondering for a while if the fact that these breakout points have become so well known expains why there seems to be (seems is the key word, I have no empirical evidence) so many failed breakouts. I have gotten to the point where I frequently wait for a breakout and then buy a pullback, rather than trying to anticipate it, or get in at the breakout point. Regarding failed breakouts, I was reading a daytrading book (The Master Day Trader, not to be confused with The Master Swing Trader), and found the following passage interesting - "We teach our traders to be the creators of those market events that others are waiting for. If the crowd is waiting for the stock to trade above 40 before they buy, then we say 'get the stock up to 40 1/8'. In other words, make the chart. ... we thought it would be beneficial for you to know how the professionals are playing the crowd. The idea is to ignite the action of your desire by getting to the crowd to take your lead. It can't always be done, but our Master Traders pull it off more often than some might think." On 21 Dec 2001 at 11:36, Dave Squires wrote: > the W. For an other "base" it's usually the spot where the major resistance > is overcome. These are obvious points because WON, et al have taught > breakout buying for many years now and the 90's were a breakout traders > utopia. > Maybe it's not as hard as I make it out to be, but I have not had - - - -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 13:08:34 -1700 From: saddelin32@yahoo.com Subject: A Great Gift For DVD Movie Users! BGCWKVF COPY ANY DVD MOVIE

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If you wish to be removed simply Click Here ------------------------------ Date: Fri, 21 Dec 2001 12:24:17 -0600 From: "Katherine Malm" 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_010C_01C18A1A.6887D640 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Patrick, Really interesting point of view in this quote. Sure makes the case for = supply & demand driving breakouts. Seems like it also makes the case for = looking for alternative technical patterns and/or modified entry points = other than the usual CANSLIM party line. Katherine ----- Original Message -----=20 From: Patrick Wahl=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 12:13 PM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the = pivot point I have been wondering for a while if the fact that these breakout = points have=20 become so well known expains why there seems to be (seems is the key = word, I=20 have no empirical evidence) so many failed breakouts. I have gotten = to the point=20 where I frequently wait for a breakout and then buy a pullback, rather = than trying to=20 anticipate it, or get in at the breakout point. =20 Regarding failed breakouts, I was reading a daytrading book (The = Master Day=20 Trader, not to be confused with The Master Swing Trader), and found = the following=20 passage interesting - "We teach our traders to be the creators of those market events that = others are=20 waiting for. If the crowd is waiting for the stock to trade above 40 = before they buy,=20 then we say 'get the stock up to 40 1/8'. In other words, make the = chart. ... we=20 thought it would be beneficial for you to know how the professionals = are playing the=20 crowd. The idea is to ignite the action of your desire by getting to = the crowd to take=20 your lead. It can't always be done, but our Master Traders pull it = off more often than=20 some might think." On 21 Dec 2001 at 11:36, Dave Squires wrote: > the W. For an other "base" it's usually the spot where the major = resistance > is overcome. These are obvious points because WON, et al have taught > breakout buying for many years now and the 90's were a breakout = traders > utopia. > Maybe it's not as hard as I make it out to be, but I have not = had - -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_010C_01C18A1A.6887D640 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Patrick,
 
Really interesting point of view in this quote. Sure makes the case = for=20 supply & demand driving breakouts. Seems like it also makes the case = for=20 looking for alternative technical patterns and/or modified entry=20 points other than the usual CANSLIM party line.
 
Katherine
----- Original Message -----
From:=20 Patrick = Wahl=20
Sent: Friday, December 21, 2001 = 12:13=20 PM
Subject: Re: [CANSLIM] stacking = the odds=20 in my favor-buying before the pivot point

I have been wondering for a while if the fact that = these=20 breakout points have
become so well known expains why there seems = to be=20 (seems is the key word, I
have no empirical evidence) so many = failed=20 breakouts.  I have gotten to the point
where I frequently = wait for a=20 breakout and then buy a pullback, rather than trying to
anticipate = it, or=20 get in at the breakout point. 

Regarding failed = breakouts, I was=20 reading a daytrading book (The Master Day
Trader, not to be = confused with=20 The Master Swing Trader), and found the following
passage = interesting=20 -

"We teach our traders to be the creators of those market = events that=20 others are
waiting for. If the crowd is waiting for the stock to = trade=20 above 40 before they buy,
then we say 'get the stock up to 40 = 1/8'. =20 In other words, make the chart.  ... we
thought it would be=20 beneficial for you to know how the professionals are playing the=20
crowd.  The idea is to ignite the action of your desire by = getting to=20 the crowd to take
your lead.  It can't always be done, but = our Master=20 Traders pull it off more often than
some might = think."



On=20 21 Dec 2001 at 11:36, Dave Squires wrote:

> the W. For an = other=20 "base" it's usually the spot where the major resistance
> is = overcome.=20 These are obvious points because WON, et al have taught
> = breakout=20 buying for many years now and the 90's were a breakout traders
> = utopia.
 >     Maybe it's not as hard = as I make=20 it out to be, but I have not had


-
-To = subscribe/unsubscribe,=20 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_010C_01C18A1A.6887D640-- - - - -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 #1981 ****************************** 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.