From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #213 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Monday, April 27 1998 Volume 02 : Number 213 In this issue: [CANSLIM] More "M" Re: [CANSLIM] OBV/MF Stocks Re: [CANSLIM] DGO [CANSLIM] Thoughts on CMED? [CANSLIM] Your Weekend Review Re: [CANSLIM] Cash Position (was M Today) [CANSLIM] TC2000 for Windows Re: [CANSLIM] scan Re: [CANSLIM] M & Head, again (sorry) Re: [CANSLIM] M & Head [CANSLIM] Opinions don't matter! RE: [CANSLIM] Profit Margin Data Re: [CANSLIM] Langston's Comment on History of List Re: [CANSLIM] DGO ---------------------------------------------------------------------- Date: Sun, 26 Apr 1998 16:04:34 -0400 From: Paul Altman Subject: [CANSLIM] More "M" Jeffry wrote: >Largely, I do follow those signals to find intermediate term bottoms and >tops which may lead to significant downside moves. They are pretty much >identical to the CANSLIM "M" price and volume indicators in HTMMIS, so >there is no real variance there. Problem is that an index does not hold >the myriad of vagaries of analyst upgrades, downgrades, earnings >surprises, warnings and all the trappings and difficulties you >apparently have in mind. Yes, I admit that I've not been too successful, when reviewing historical data, in predicting broad market changes based on ideas I've used from HTMMIS. Not to say it can't be done, it obviously can, I just haven't done too well with it. So, I'm curious to hear what others are up, too. Sounds like your friends have come up with a simple market timing system that's working pretty well. >I like trading stocks within the CANSLIM discipline. What fun is it to >plug in a computer and just watch teh profits accumulate? I'm largely >serious with that comment, I love the challenge of this discipline as >well as anything I've ever done. Obviously, there's quite a bit of discipline involved in trusting your computerized signals enough to actually trade them. Most system traders describe this as the central problem in system trading. Surprised me, I would have intuitively expected that devising a profitable system would be the biggest problem. But, I understand your point. For me, though, a large part of the pleasure of the treasure hunt is in devising the system. >New leadership stocks breaking from appropriate bases on follow through >action from an intermediate to long term bottoming formation in the >indices, coupled with other appropriate indicators like excessive >bearishness, etc., hold a much higher probability of making sustained >moves than just any old stock blowing favorably in the breeze of a >strong, uptrending "M", as your comment would suggest. I would not choose "any old stock" as a good high-beta proxy for "M". Rather, I was thinking of index derivatives, or one of the leveraged index funds. >Playing CANSLIM stocks, if done with respect for the rules and with >experience, from an appropriate turning point in the "M" is the >antithesis of "a poor investment", as you call it. I don't consider CANSLIM a poor investment. I'm quite interested in it. My quote, in context, was trying to say that if you _knew_ "M", CANSLIM would be a (rhetorically) "poor" investment choice to play _in comparison_ to using a leveraged market proxy. I guess I didn't make that sufficiently clear. BTW, I disagree in _principle_ with your implication that I'm lazy and want other people to do my research for me. If that were indeed true, I'd feel no shame about it. I think what's important is not research performed, but risks taken and good returns with (hopefully) low volatility. I'm not one to criticize people who lean on and/or profit from other people's research, because I think that having the guts and the discipline to make investment decisions is the lion's share of what's tough about this business. Don't get me wrong, I admire great research. But I'm not in any way attached to the "nobility" of it. I'm much more impressed by people who can pull the trigger and have the stomach to stand by their beliefs, and make money. Even if it meant coat-tailling someone else's system, trade for trade (assuming the "parasite" was truly convinced that coat-tailling was a good investment). Personally, I find that much more difficult than research, which to me is an addictive "treasure-hunt" computer game. Sounds like you've got outstanding results for Q1. So to me that's the bottom line. Congratulations. Regards, Paul - - ------------------------------ Date: Sun, 26 Apr 1998 18:25:45 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] OBV/MF Stocks - --------------69E00D0BBEC4DBCD849C4AF2 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Evening Talib-- RTI is an interesting stock because its positive OBV/MF is not so easily seen. Print a 3-mos chart of OBV and MF. OBV: I'll designate some points to examine before drawing any trend lines. As you become more familiar with reading the charts, you will likely put in the trend lines first because you'll see more expansively. On the print out mark the OBV chart this way. Let the low of mid-March be A; the equivalent low of April 1, B; the equivalent low in the first of March, C. Mark the two down spikes late in April D and E respectively. Still on OBV: Mark spike at March first, 1; then mark each other spike out to Friday, 2, 3, 4, 5, and Friday's close as 6. I have put in more reference points than are absolutely necessary just to show how detailed you can be if you wish. As you will see when we're finished, some of these points, though legitimately marked, exhibit a refinement that gets a bit too cute. Don't get too cute with refinements; they'll only waste time and may get you off track. Draw a vertical up through 1 and onto the price on the chart; that line should run through the long candlestick on March 1. The price is 24.5. Draw a vertical through number 2 and up through price; the price is the same. Now, on the OBV, draw a vertical through number 6; the price is 22.75. This is the long view; it shows that there is indeed a positive divergence. That divergence amounts to 1.75. The greater the divergence, the more powerful is the latent strength underlying the stock. You'll have to, on your own, decide how to judge the latent strength. The Slow/FastStochastics and the MACD are useful. Now, let's look within the long view. Draw a vertical up through A, B, C, D, and E. Note the price as each vertical passes through the price. At A, price is 23; at B about 21.75. Continue the procedure out to Friday. To see if OBV is positive, write in the price at A, B, etc. If the OBV is higher as the price falls, then there is a positive divergence. Too, there would be a positive divergence if OBV rose and price held. The first divergence would be a stronger divergence. How you weight this divergence is up to the chart reader. Let's take another internal look at the long view. Examine the period from April 1 to last Friday. Draw a trend line across the tops of 3, 4, and 5. Draw a trend line across the price top at the end of March through the top at the middle of April; extend it beyond the chart to give a better angle against the trend line across 3, 4, and 5. If you wish, you may use a protractor to find the interior angle. What do with this angle is up to you. When you've enough charts, you may be able to translate angle into strength. Don't get too cute with angles. Use the same procedures on the MF chart. MF is less impressive, but still modestly positive. What is most influential on the MF is that on Friday the MF is at the same level as it was April 1, but the stock is at 22.75 [a 1.75 positive divergence]. When I draw trend lines on the price, I use the 3-line rather than daily prices. Too, you should turn the prices into candlesticks. Always take a look at a 1-mos chart before you close down. You don't want to miss any divergence, positive or negative. The last few days of trading, 7-10 are useful for finding an entry point. Is the stock a buy? Yes. The EMA [see a 1-mos chart] gave a first level buy [3-line through the 7 and is ready to pass to a second level buy [3-line through the 10]. Remember that you are buying into a declining market. Therefore, I would buy a small lot on Monday; and then buy a second lot a half point beyond that; and a third lot a half point beyond the second. Using this procedure, you will have a position, but will not be seriously harmed if the market drops further. Stock picking is playing the odds. The odds are with you. The chances for making money are greater than the chances for losing money. You can ask for no more. Set and abide by your stops. Thanks for the mail, Talib. Connie Mack Talib Hirji wrote: > Connie, > > I tried to develop scan based on your OBV/MF strategy in my AIQ > software > and came up with 7 stocks of my 8000+ database. Of these seven, the > appearance of chart for only two, as I see, can be considered > candidates > and they are "RTI" and "SNTKY". > > If you can, Please let me know, if you would consider these as buy > candidates per your standards. > > Thank You, > > Talib > > At 04:29 PM 4/25/98 -0400, you wrote: > >Members-- > > > >Although there were fewer stocks available for scan on the three > >exchanges, there were more stocks that survived the screening: GLH, > BDT, > >FFD, and RAZR. There have been days the last two weeks when not a > >single stock survived; and rarely do I find four. > > > >Those who have allowed OBV/MF/EMA to be complementary indicators to > >their Canslim indicators--and have spoken to me privately and on the > >site--seem to have grasped the concept quite well. Most of the > stocks > >from your screening are very well chosen. I've taken two or three > for > >myself--with your permission, of course. > > > >Of the four stocks, only GLH is ready to buy; it gave a second level > buy > >on Friday. You can get too cute with the three levels of the EMA, > both > >buying and selling, because you may get a first level buy in the > middle > >of the day and won't be able to act on it unless you're watching > every > >few minutes. Getting a first and second level signal or a second and > > >third level signal in one day is not uncommon. > > > >To refine the EMA, you can do this. Find a stock in which at least > two > >EMAs are in incline, such that the 3-line is about to pass through > the > >7. Then pull up a two or five day hourly chart--or a two day-15 > minute > >chart if you want to be aggressive. When, on either chart, you get a > > >first level buy signal, put your order in. You'll need to anticipate > at > >what price the buy will take place. And keep the spread in mind as > you > >decide. > > > >If you have a Time & Sales chart, you may see some block trades that > >give a hint at what price to move in. > > > >The positive MF divergence for GLH begins in mid-March to about the > end > >of April. The MF tails off while the stock is rising the last three > >days. This is a slight negative, but keep it in mind. A slight > >negative in a powerful indicator is not to be ignored. If the stock > >doesn't act the way you want following Friday's buy, tighten > >everything--your stops, your emotion, and your mind. Remember that > you > >are buying into a weakening market. > > > >The OBV has risen from the last of February to the spike in mid-March > > >while the price has fallen. > > > >Price continues to fall and the OBV levels out in mid-March and then > >begins a slow rise out > >to the present. The MACD is coming off an oversold bottom and looks > >okay. The SlowSto is ambiguous. > > > >FFD gave a buy over a week ago. On a correction that results in a > new > >buy, there is some juice left if the OBV/MF stays positive. > > > >BDT gave a sell over a week ago. If the OBV/MF stays positive, this > >would be a buy. > > > >RAZR is not a buy but the 3-line is rising and will pass through the > >7-line with another up tick or two. This is beginning to look like > an > >instance I spoke about with GLH. > > > >I'm reading RAZR this way. At the end of March price falls out of > >bed--as does OBV and MF. But here is the positive reading. Both the > > >OBV and MF track the fallen price for a week, but then abruptly rise > >even higher when the price was at its high [about 23] although the > price > >is now about 18. The rise of MF after its fall, and the price fall, > >indicates that the money is coming in ever faster than before. > > > >The price does not respond. If we're right--that there is good OBV > >volume that continues after the price decline and that money is > coming > >in even faster than before--we're in a position to make a very safe > >entry, an entry in which the prospects for making money are greater > than > >the prospects for losing money. > > > >Playing the odds is the best that anyone can do. That's why traders > can > >lose on 50-60 percent of their trades and still make money: Find the > >entries with the least risk and religiously defend the stops. For an > >investor/trader not to arm himself with stops is as silly as a > violinist > >saying he doesn't play well because bowing makes his arm tired. > > > >Too, there is the Monica Lewinsky market principle: Don't go down on > > >your stops--unless you don't mind wearing knee pads and like to > swallow > >your losses. > > > >Built into the positive divergence of OBV/MF is the fact that it > ferrets > >out stocks that are in decline [or have been periodically in > decline] > >but ready to recover [perhaps only temporarily and hence the > invitation > >for traders to make some money] and have already declined [oversold?] > > >and ready to move up. > > > >Where there is room for differing interpretations are these > instances: > >[1] how far back does the positive divergence occur; [2] how long was > > >the divergence; [3] how many divergences; [4] from what level does > the > >divergence arise; [5] how powerful was the divergence? Most answers > lie > >in reading trendlines drawn on price, OBV/MF, MACD, and Stochastics. > If > >you're inclined, use a protractor to get some angles [ratios] of rise > > >and fall between price and OBV/MF. There are more choices. No > reason > >why you can't introduce yours. > > > >The three level EMA--and you can pick your own numbers--is one of the > > >best in/out indicators around. Don't let its simplicity disguise its > > >efficacy. Same with OBV/MF. > > > >I would print out some of the charts that have recently met both > Canslim > >and OBV/MF criteria. Not often will the two systems coincide, but > when > >they do coincide, and, they do, they should perform extraordinarily > >well and give you further comfort in your entry. > > > >Even when there is no coincidence, OBV/MF can provide confirmation or > > >negation of Canslim stocks, especially to evaluate the quality of > >breakouts. > > > >Connie Mack > > > > > >- > > > > > > - - --------------69E00D0BBEC4DBCD849C4AF2 Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit Evening Talib--

RTI is an interesting stock because its positive OBV/MF is not so easily seen.

Print a 3-mos chart of OBV and MF.

OBV: I'll designate some points to examine before drawing any trend lines.  As you become more familiar with reading the charts, you will likely put in the trend lines first because you'll see more expansively.

On the print out mark the OBV chart this way. Let the low of mid-March be A; the equivalent low of April 1, B; the equivalent low in the first of March, C.  Mark the two down spikes late in April D and E respectively.

Still on OBV: Mark spike at March first, 1; then mark each other spike out to Friday, 2, 3, 4, 5, and Friday's close as 6.  I have  put in more reference points than are absolutely necessary just to show how detailed you can be if you wish.  As you will see when we're finished, some of these points, though legitimately marked, exhibit a refinement that gets a bit too cute.  Don't get too cute with refinements; they'll only waste time and may get you off track.

Draw a vertical up through 1 and onto the price on the chart; that line should run through the long candlestick on March 1.  The price is 24.5.  Draw a vertical through number 2 and up through price;  the price is the same.

Now, on the OBV, draw a vertical through number 6; the price is 22.75.  This is the long view; it shows that there is indeed a positive divergence.  That divergence amounts to 1.75.  The greater the divergence, the more powerful is the latent strength underlying the stock.  You'll have to, on your own, decide how to judge the latent strength.  The Slow/FastStochastics and the MACD are useful.

Now, let's look within the long view.  Draw a vertical up through A, B, C, D, and E.  Note the price as each vertical passes through the price.  At A, price is 23; at B about 21.75.  Continue the procedure out to Friday.

To see if OBV is positive, write in the price at A, B, etc.  If the OBV is higher as the price falls, then there is a positive divergence.  Too, there would be a positive divergence if OBV rose and price held.  The first divergence would be a stronger divergence.  How you weight this divergence is up to the chart reader.

Let's take another internal look at the long view.  Examine the period from April 1 to last Friday.  Draw a trend line across the tops of 3, 4, and 5.  Draw a trend line across the price top at the end of March through the top at the middle of April; extend it beyond the chart to give a better angle against  the trend line across 3, 4, and 5.  If you wish, you may use a protractor to find the interior angle.  What do with this angle is up to you.  When you've enough charts, you may be able to translate angle into strength.  Don't get too cute with angles.

Use the same procedures on the MF chart.  MF is less impressive, but still modestly positive.  What is most influential on the MF is that on Friday the MF is at the same level as it was April 1, but the stock is at 22.75 [a 1.75 positive divergence].

When I draw trend lines on the price, I use the 3-line rather than daily prices.  Too, you should turn the prices into candlesticks.

Always take a look at a 1-mos chart before you close down.   You don't want to miss any divergence, positive or negative.  The last few days of trading, 7-10 are useful for finding an entry point.

Is the stock a buy?  Yes.  The EMA [see a 1-mos chart] gave a first level buy [3-line through the 7 and is ready to pass to a second level buy [3-line through the 10].  Remember that you are buying into a declining market.  Therefore, I would buy a small lot on Monday; and then buy a second lot a half point beyond that; and a third lot a half point beyond the second.  Using this procedure, you will have a position, but will not be seriously harmed if the market drops further.

Stock picking is playing the odds.  The odds are with you.  The chances for making money are greater than the chances for losing money.  You can ask for no more.  Set and abide by your stops.

Thanks for the mail, Talib.

Connie Mack
 
 
 
 
 
 

Talib Hirji wrote:

Connie,

I tried to develop scan based on your OBV/MF strategy in my AIQ software
and came up with 7 stocks of my 8000+ database. Of these seven, the
appearance of chart for only two, as I see, can be considered candidates
and they are "RTI" and "SNTKY".

If you can, Please let me know, if you would consider these as buy
candidates per your standards.

Thank You,

Talib

At 04:29 PM 4/25/98 -0400, you wrote:
>Members--
>
>Although there were fewer stocks available for scan on the three
>exchanges, there were more stocks that survived the screening: GLH, BDT,
>FFD, and RAZR.  There have been days the last two weeks when not a
>single stock survived; and rarely do I find four.
>
>Those who have allowed OBV/MF/EMA to be complementary indicators to
>their Canslim indicators--and have spoken to me privately and on the
>site--seem to have grasped the concept quite well.  Most of the stocks
>from your screening are very well chosen.  I've taken two or three for
>myself--with your permission, of course.
>
>Of the four stocks, only GLH is ready to buy; it gave a second level buy
>on Friday.  You can get too cute with the three levels of the EMA, both
>buying and selling, because you may get a first level buy in the middle
>of the day and won't be able to act on it unless you're watching every
>few minutes.  Getting a first and second level signal or a second and
>third level signal in one day is not uncommon.
>
>To refine the EMA, you can do this.  Find a stock in which at least two
>EMAs are in incline, such that the 3-line is about to pass through the
>7.  Then pull up a two or five day hourly chart--or a two day-15 minute
>chart if you want to be aggressive.  When, on either chart, you get a
>first level buy signal, put your order in.  You'll need to anticipate at
>what price the buy will take place.  And keep the spread in mind as you
>decide.
>
>If you have a Time & Sales chart, you may see some block trades that
>give a hint at what price to move in.
>
>The positive MF divergence for GLH begins in mid-March to about the end
>of April.  The MF tails off while the stock is rising the last three
>days.  This is a slight negative, but keep it in mind.  A slight
>negative in a powerful indicator is not to be ignored.  If the stock
>doesn't act the way you want following Friday's buy, tighten
>everything--your stops, your emotion, and your mind.  Remember that you
>are buying into a weakening market.
>
>The OBV has risen from the last of February to the spike in mid-March
>while the price has fallen.
>
>Price continues to fall and the OBV levels out in mid-March and then
>begins a slow rise out
>to the present.  The MACD is coming off an oversold bottom and looks
>okay.  The SlowSto is ambiguous.
>
>FFD gave a buy over a week ago.  On a correction that results in a new
>buy, there is some juice left if the OBV/MF stays positive.
>
>BDT gave a sell over a week ago.  If the OBV/MF stays positive, this
>would be a buy.
>
>RAZR is not a buy but the 3-line is rising and will pass through the
>7-line with another up tick or two.  This is beginning to look like an
>instance I spoke about with GLH.
>
>I'm reading RAZR this way.  At the end of March price falls out of
>bed--as does OBV and MF.  But here is the positive reading.  Both the
>OBV and MF track the fallen price for a week, but then abruptly rise
>even higher when the price was at its high [about 23] although the price
>is now about 18.  The rise of MF after its fall, and the price fall,
>indicates that the money is coming in ever faster than before.
>
>The price does not respond.  If we're right--that there is good OBV
>volume that continues after the price decline and that money is coming
>in even faster than before--we're in a position to make a very safe
>entry, an entry in which the prospects for making money are greater than
>the prospects for losing money.
>
>Playing the odds is the best that anyone can do.  That's why traders can
>lose on 50-60 percent of their trades and still make money: Find the
>entries with the least risk and religiously defend the stops. For an
>investor/trader not to arm himself with stops is as silly as a violinist
>saying he doesn't play well because bowing makes his arm tired.
>
>Too, there is the Monica Lewinsky market principle:  Don't go down on
>your stops--unless you don't mind wearing knee pads and like  to swallow
>your losses.
>
>Built into the positive divergence of OBV/MF is the fact that it ferrets
>out stocks that  are in decline [or have been periodically in decline]
>but ready to recover [perhaps only temporarily and hence the invitation
>for traders to make some money] and have already declined [oversold?]
>and ready to move up.
>
>Where there is room for differing interpretations are these instances:
>[1] how far back does the positive divergence occur; [2] how long was
>the divergence; [3] how many divergences; [4] from what level does the
>divergence arise; [5] how powerful was the divergence?  Most answers lie
>in reading trendlines drawn on price, OBV/MF, MACD, and Stochastics.  If
>you're inclined, use a protractor to get some angles [ratios] of rise
>and fall between price and OBV/MF.  There are more choices.  No reason
>why you can't introduce yours.
>
>The three level EMA--and you can pick your own numbers--is one of the
>best in/out indicators around.  Don't let its simplicity disguise its
>efficacy.  Same with OBV/MF.
>
>I would print out some of the charts that have recently met both Canslim
>and OBV/MF criteria.  Not often will the two systems coincide, but when
>they do coincide, and,  they do, they should perform extraordinarily
>well and give you further comfort in your entry.
>
>Even when there is no coincidence, OBV/MF can provide confirmation or
>negation of Canslim stocks, especially to evaluate the quality of
>breakouts.
>
>Connie Mack
>
>
>-
>
>

-

   - --------------69E00D0BBEC4DBCD849C4AF2-- - - ------------------------------ Date: Sun, 26 Apr 1998 16:57:26 -0700 From: "John Iding" Subject: Re: [CANSLIM] DGO With DGO making more noise about the end of beta testing ... are we planning to make a group rate run at DGO? Did we get enough interested parties to make it interesting to DGO? Thanks ... I for one will miss it ... John - - ------------------------------ Date: Sun, 26 Apr 1998 20:11:21 -0500 From: "Jerry Buchheit" Subject: [CANSLIM] Thoughts on CMED? I've been watching Colorado Med Tech (CMED) which has been in a trading range for a couple of months after a 350% runup during the past year. CMED (NASDAQ) eps 90 rel str 96 Acc/Dis B ann earn growth 23% Q EPS chng 29% Q sales chng 111% float 3.7 M industry rank 1 out of 71 (by Zacks) CMED recently formed a partnership with TAVA to address Y2K issues for medical technology equipment. I would appreciate anyone's thoughts on this company. Can one consider the recent trading range of 9-10 to be a pause on it's march upward? Also, are there any guidelines from CS regarding buying before/after earnings are reported? Should such an event be ignored when following CS or not? Regards, Jerry B. - - ------------------------------ Date: Sun, 26 Apr 1998 22:02:28 -0400 From: Larry Horn Subject: [CANSLIM] Your Weekend Review I just posted the 4/24/98 "Your Weekend Review" selections at = www.duke.edu/~clhorn/canslim. The web site had 130 visits last week so I assume people are interested = in it. I start with IBD's Friday "Your Weekend Review" which lists all = stocks above $7 within 15% of 52 week high and with EPS and RS of 85 or = more. From that list, I select only the stocks with: A/D=3DA or B, the = highest performing mutual fund with a large investment in the stock has = a rank of A-, A, or A+ (top 15%, 10%, or 5% 3 year return), and group = strength=3DA. This week's list has 131 stocks on it. =20 Data for the stocks includes PE/group = strength/A/D/EPS/RS/Shr/Flt/%Mgmt/ROE/ and some have %Institution. After the above screen, I screened for stocks with %Mgmt 5-50% and = %Institution 5-30% and I was left with 3 stocks: EPS RS A/D GrpStr PE Shr Flt %Mgmt ROE %Instit ALGI 98 99 A A 14 605 300 50 53 9.1 TMBS 99 95 B A 24 7.01 4.9 30 49 13 LIND 90 96 A A 15 4.83 2.7 44 19 28 The shares outstanding for ALGI is too high for me and its breakout was = at $27 in late February. It's now at $56. LIND looks like it broke out 2 weeks ago from $17 and is now at $23. Too = late for that one too. TMBS closed the week at $18 with volume going down on down days. It's = been in a trading range from 15-18 for 11 weeks. Is that a double = bottom during those 11 weeks? If there is a breakout above $18, it = could be a nice time to buy. =20 Larry - - ------------------------------ Date: Mon, 27 Apr 1998 02:08:40 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Cash Position (was M Today) On Sun, 26 Apr 1998 10:00:46 +0200, you wrote: :At 09:04 PM 25-04-98 GMT, you wrote: :Dan wrote: : :>Monday was a good day for me :>and I have been doing pretty well lately. However, I hadn't made a :>trade in almost two months and I looked over Peter Christiansen's list :>and liked a lot of what I saw. Still, I couldn't bring myself to sell :>any of my 3 stocks, and I was pretty much margined to the hilt. I took :>some loss on Tuesday, and on Wednesday I looked at my stocks and had :>to admit that they didn't look like they were doing anything. I just :>went to 100% cash in a moment of decision. Glad I did, because :>Thursday I would have lost about 25% of my profits for the year. : :Wow, good for you! : :I'd love to have a look at the charts of the stocks you owned. To see if :there were any signs to looked like sell signals. I held 3 stocks: LEN, TMBS and KEG. What do you think? :>Wednesday and Friday were also losses, though more modest.=20 :> :>Until I feel general market conditions have improved or have a very :>good feeling about a stock's prospects (whether I'm thinking long or :>short), I am glad to be in cash. : : : :Johan Van Houtven :CLICK! N.V. / Wilrijk, Belgium : : :- - - ------------------------------ Date: Sun, 26 Apr 98 20:48:44 -0400 From: alfrench@erols.com Subject: [CANSLIM] TC2000 for Windows I subscribed to TC2000 for Windows primarily because it can be updated on an intraday basis and I will be able to screen for price and volume surges on my watch list during the day. They say it will take 2 seconds to create either list. This should enable me to catch breakouts during the day closer to their pivot points and before they become too extended. If so, the additional cost should easily pay for itself. I'll admit to being frustrated by seeing stocks on my CANSLIM watch list that jumped 5% or more on the day of their breakout, and before I can get an order filled the next day, they are already too far extended. I did catch MDLK for 20%, and that whetted my appetite! Someone expressed concern that the screenshot at http://www.stockfinder.com showed a graph that was not scaled in round numbers. This is because it was set for a logorithmic scale so that the price increments amount to equal percentages. If TC2000 for Windows is like the DOS version, it can be configured for either a logorithmic or arithmetic scale (with round numbers). But an arithmetic scale makes a $10 move from $50 to $60 (20%) look the same as a $10 move from $10 to $20 (100%). I find the logorithmic scale gives a more accurate picture of a stock's price action even though they are not round numbers. A logorithmic scale also allows me to see percentage changes right on the chart without having to do the calculations. It appears the DOS version of TC2000 will be continued. This provides stock data for a half cent per quote with a cap on charges of $1 per day. For those who track either a small number of stocks, or a very large number, this seems inexpensive compared to others I've seen. I've been following 100 stocks with it for about $11 per month and have been quite pleased with their service for over ten years. Al French alfrench@erols.com - -- (Who subscribes to CANSLIM-Digest and can seldom make timely comments to the list.) ----------------------------------------------------------- - - ------------------------------ Date: Mon, 27 Apr 1998 02:31:32 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] scan On Sat, 25 Apr 1998 11:52:16 -0500, you wrote: :Quotes plus scan than I use to find volume breakouts yielded 6 stocks = from Friday, down from generally around 40. : :don't know a thing :joe : :joe@2fords.net :http://www.2fords.net/joe/ new highs/new lows was by far the lowest I've seen in some time on =46riday. Something like 50/30. It's more typically 200/20. Dan - - ------------------------------ Date: Sun, 26 Apr 1998 22:08:13 -0500 From: Dave Cameron Subject: Re: [CANSLIM] M & Head, again (sorry) Jeffry White wrote: > > > We're not ignoring you. Really, we're not. We love you. :-) > > Careful, now. Dave Cameron is wathcing!! Right, Dave. ;) Hmm.... see if I ever make a comment about JW's sarcasm again! ;-> > > > For example, if you have a coin that's weighted 55% heads, but you get to > > toss it every day, it's only going to be a matter of months before there's > > a statistical (virtual) certainty of profit. Similarly, if you only toss > > every few years, but the coin is weighted 99% heads, it won't be too long > > before you're (practically) guaranteed a profit. > > > > Conversely, if the granularity is low and the accuracy is not outstanding, > > the results may be poor. E.g, the coin is weighted 55%, and you only get > > to toss it every few years. This is actually very good. How many turning points in the market have there been (rhetorical)? How reliable is the differentiation between the start of a market decline and another leg up. Take a look at the NASDAQ chart. The current pattern may be mirroring what happened three weeks ago, when after hitting a new high, the NASDAQ dropped to 1780 from 1860 in 2 days. Of course, it subsequently climbed to 1930 or so. Since then, it has dropped to 1870 in 2 days on a similar volume pattern. It is very tough to tell if this is the start of a real decline, or merely a pullback on its way to higher ground like last time. Thus, the coin (or indicator) is weighted 55% - without a lot of previous patterns to tell us if it is really 55% or 51% or 68%... Sincerely, The "watching" Dave Cameron - - ------------------------------ Date: Sun, 26 Apr 1998 22:16:20 -0500 From: Dave Cameron Subject: Re: [CANSLIM] M & Head Jeffry White wrote: > > Dave, you wrote: > > > Each of us needs to do what we are comfortable with. I am comfortable > > staying 100% invested until either my stops are taken out - or I start > > seeing down days with a volume in the range of Wednesday's. But that's > > just my take (although its heartening to know that Ryan agrees!). > > > > Precisely. Your sell strategy has a lot more discipline than mine. > Wish I could play it that way, just can't. I'm envious that you can > maintain the discipline with stop placement, and I hope it continues to > work for you. > Umm... I really can't completely play the sell strategy - but I try. Sometimes, in steeper drops, I go right through my stops. WON often says that any stock which drops 50% has to drop 10% first. Nice words, but not true. I've had several stocks which have faltered, then gapped down 30% - then where's my stop loss get me? Often close to the 52-wk low. Luckily these are few in number. But, I agree - it would be more disciplined - but part of it is that I am better at reading individual stocks as contrasted to market averages. > Even in light of Ryan's comment, with which I agree, don't over look the > suddeness with which "failed rally attempts" from these seemingly > *mini-corrections* can occur. October last was a classic, in my > opinion. I was out, you were watching stops get hit. We both went to > cash. That's the point, I just enjoy the "M" *watch* a bit more, I > suppose, and prefer being out before the sh*t hits the fan, if possible. You are, of course, correct. I admit I can't really do the "M" watch. If I had, I would have bailed 3 weeks ago when the NASDAQ dropped from 1860 to 1780 in 2 days. I see the current drop as potentially similar. But... if I look at my individual stocks, the past 2 days action looks much like the NASDAQ chart. (i.e. a pullback in an upward trend). The scary thing is that there hasn't been much basing. Because of this, there could be a quick downturn. I'm more comfortable with a base for a while. But... I don't hope for anything - just watch. > > How'm I doing? ;) Well... I mention your name, and now I get singled out too... Maybe we are becoming popular. BTW, to get an idea of what one of my "typical stocks" have been doing, look at ASTX. Basing roughly between 15.5 and 17.5. Recent action (last few days) has been down price and down volume. Not a bad sign. If it was up volume - I'd be real wary. > > Jeffry Dave "the watcher" Cameron > > - - - ------------------------------ Date: Sun, 26 Apr 1998 22:18:45 -0500 From: Dave Cameron Subject: [CANSLIM] Opinions don't matter! DCSquires wrote: > If WON was in print tommorow saying this > rally is still intact it wouldn't change a thing I do because he told me > opinions don't matter.....only the market verdict does. > BING! BING! BING! You win the prize! I think this part of the post bears repeating. I wouldn't change a thing unless I were paying WON to manage my money - then I'd listen to his opinions because he'd have a financial incentive to keep me happy. Dave Cameron - - ------------------------------ Date: Sun, 26 Apr 1998 23:42:56 -0400 From: Larry Horn Subject: RE: [CANSLIM] Profit Margin Data Robert, 4-22-98<> I haven't seen this answered yet in the Digest version, so, http://www.rapidresearch.com/advanced.asp lists Profit Margin of the company as a % of the industry's Profit Margin. Larry - - ------------------------------ Date: Mon, 27 Apr 1998 07:25:25 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Langston's Comment on History of List SBUX,seems to be a good canslim stock.By DGO,except for outstanding shares.I see a very long cup ,going back to Sept.97.Thinking of buying in right were it's at.Any comments? Thanks - - ------------------------------ Date: Mon, 27 Apr 1998 08:46:36 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DGO John, Rich was on vacation last week, but should be back by today. Hopefully he can begin negotiations shortly. Tom W - -----Original Message----- From: John Iding To: canslim@lists.xmission.com Date: Sunday, April 26, 1998 7:55 PM Subject: Re: [CANSLIM] DGO >With DGO making more noise about the end of beta testing ... are we planning >to make a group rate run at DGO? Did we get enough interested parties to >make it interesting to DGO? Thanks ... I for one will miss it ... John > > > > >- > - - ------------------------------ End of canslim-digest V2 #213 ***************************** 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.