From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2469 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 Thursday, May 30 2002 Volume 02 : Number 2469 In this issue: re: [CANSLIM] Today's WebLink Re: [CANSLIM] Maybe off-topic, but I don't think so Re: [CANSLIM] Today's WebLink Re: [CANSLIM] Today's WebLink ---------------------------------------------------------------------- Date: Thu, 30 May 2002 07:33:54 -0700 From: Neal Frankle Subject: re: [CANSLIM] Today's WebLink Right On Duke! Lately I have begun to think that WON gives a whole new meaning to the word = "RETROFIT" Neal - - - -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: Thu, 30 May 2002 11:04:11 EDT From: Chazmoore@aol.com Subject: Re: [CANSLIM] Maybe off-topic, but I don't think so - --part1_59.1c4067b9.2a27996b_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Good observations Duke, and of course you are correct. Two sectors you didn't mention are prescription drugs and health care. Charley - --part1_59.1c4067b9.2a27996b_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Good observations Duke, and of course you are correct. Two sectors you didn't mention are prescription drugs and health care. Charley - --part1_59.1c4067b9.2a27996b_boundary-- - - - -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: Thu, 30 May 2002 10:21:25 -0500 From: michael_niemotka@baxter.com Subject: Re: [CANSLIM] Today's WebLink Katherine, VERY well put. I would ask this question to the group: How much time do you give a new position to grow, assuming that you bought it at a breakout point. I guess another way to phase the question is: how long after an breakout attempt do you wait before backing out of the position (minus commisions of course) to get the capital back for entry into another possible winner? Do any of you have any "rules" like: Need to see an X% gain within the first 4 weeks Other than the 7-8% loss rule I wonder if other get out sooner if it looks like the breakout failed, or do you hold on for a few weeks. Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com "Katherine Malm" To: canslim@lists.xmission.com Sent by: cc: owner-canslim@lists.xm Subject: Re: [CANSLIM] Today's WebLink ission.com 05/30/2002 09:33 AM Please respond to canslim Hi Duke, Churning is a well documented sign of distribution at the top and isn't something pulled out of the air by the author. Below I've sited some resources from TradingMarkets.com (Loren F. used to write for the IBD) and from Investors.com. With respect to HOV in general, just goes to show that sell rules aren't all that cut and dried. Most of the sell "rules are actually guidelines and are used to "stack up" the evidence so to speak. With HOV, I would go through a what-if similar to this: - -Breakout from sound base? Yes 2/26, approx. $22.40 - -Run up of >=20% in less than 8 wks? Yes. By 4/19 was up 38% - -At this point, a subset of sell rules start to kick in: That is, if the stocks runs up >=20% in 8 wks, you "may" want to sit through the first correction. (from HTMMIS, paraphrased) - -May comes along and HOV gets its first bout of churning and distribution ( 5/6 heavy dist., 5/7 churning, 5/8 heavy dist.) - -What to do? -Step 1: stack up the evidence pro: leading group, high RS and rising, market had FTD con: group has been on a long run since early 2000, may be finished, many stocks breaking down Choice 1: Weigh in, make a descision to hold on based on the >=20% in 8 wks guideline. Evidence you'll be looking for thereafter--support at 50dMA, action of other stocks, etc. (similar to the Weblink article) -Choice 2: 2 days of heaving distribution + 1 churning = heavy evidence of unloading in 5 short days. Sell. As far as I've been able to figure out, sell rules are *not* cut and dried. The individual's interpretation of the evidence, their tolerance for pain, their profit goals in entering the position, the length of time they've held the stock and current gains will weigh in to the decision. So, two people decide completely differently given the same chart AND the same set of WON/CANSLIM sell rules. Darn, wish it were more clear. I'd love to do a calculation and punch a button in/out. Now wouldn't *that* be keen? - -Katherine Here are a few articles I've uploaded on the subject: http://WallStreet-LLC.com/canslim/NewHighLightVol011901.JPG http://WallStreet-LLC.com/canslim/NewHighsWeakVol060600.JPG http://WallStreet-LLC.com/canslim/BuySellTipsVol102301.JPG http://WallStreet-LLC.com/canslim/StickWithLeaders101000.JPG ========= Q: Eric S. Hill: How is it that a stock can trade many times its average volume on a given day with hardly any price hange? Is this to be considered bullish or bearish? Loren Fleckenstein: A: Eric: You cannot apply a mechanical rule that applies to all siutations. However, generally speaking, what you're describing is called "churning." Churning after a stock has made an extended advance could be bearish and a tip-off of a major price decline to come. Churning after a stock has suffered a major downturn could be bullish and signal that the stock is near a bottom. ====== Question (Ask Bill O'Neil): How do I know when to sell a well-performing stock to protect my gains? Answer: Many investors don't pay much attention to sell rules. But they are just as important as buy rules. After a stock has had a significant run-up, look for signs of fatigue. One is what we call "churning." That's when the stock trades on comparatively heavy volume but can't manage to make meaningful price gains. Another red flag is when the stock makes a new price high on low volume. Also troubling is when the stock repeatedly falls as volume increases. Some stocks that double or go even higher over several months will peak in a "climax top" characterized by a couple of weeks in which the price bursts up 25% to 50% or more on heavy volume. Also watch for weakness in the stock's industry group, as well as the general market. ----- Original Message ----- From: Tom Worley To: canslim@lists.xmission.com Sent: Thursday, May 30, 2002 8:43 AM Subject: Re: [CANSLIM] Today's WebLink Duke, I would be a lot more impressed with IBD if they had reported that potential sell signal just a day or two later, rather than weeks later. On the other hand, I would disagree that selling the next day was necessarily the right action. We see many signals, both buy and sell, as well as hold. It is the collective accumulation of those signals that should trigger an action, in most cases (the 8% stop loss rule being one of the few that stands on its own). I realize that IBD is not being paid for specific investment advice, and likely would not want to precipitate a correction by reporting every sell signal immediately. But I do agree, all these new rules they seem to be coming up with, are they their interpretation of CANSLIM, or is this actually coming from WON? ----- Original Message ----- From: Duke Miller To: CANSLIM Sent: Thursday, May 30, 2002 9:02 AM Subject: [CANSLIM] Today's WebLink Bulletin: Here we go again with some new CANSLIM tactics springing from WON's perfect hindsight in today's WebLink on HOV. I quote: But on May 8, the stock notched a new intraday high on quiet trade and finished lower that day (Point 4). New highs on low volume are one sign that demand is waning and pose as a key sell signal. However, given that the stock was only in the 10th week of its advance, it can be worth waiting to see if a rally still has juice. Over the next week and a half, Hovnanian fell hard and clipped its 50-day line on heavy trade (Point 5). On May 16, the stock closed below its 50-day for the first time since November. But from the next day, it began clawing its way back above the key intermediate trend line. The first new lesson (to me, anyway) is couched in the statement, "But (operative word) on May 8...a new intraday high on quiet trade...a key sell signal." When I look at the chart on May 8, I see something different: It tells me the stock closed down that day on low volume. I thought this was a good sign. But now its a bad sign, because it reached a new "intraday" high on light volume. Maybe I was in the men's room during the advanced seminar when they covered this. :) My point is, if you new about the "intraday high on low volume sell rule," wouldn't you have SOLD the next morning at the open? (If you didn't, then today's Investor's Corner is for naught.) But wait a minute, lo and behold, yet another new rule surfaces: "However, given that the stock was only in the 10th week of its advance, it can be worth waiting to see if the rally still has juice." Where in the 24 Rules is that hidden? I searched the whole Investors.com for "rally juice" and nada. In hindsight, the fact remains, if you held HOV, you would be wise to have sold on the new intraday high on low volume. That is, if you knew about that rule. I guess we learn something new every day, don't we? Where oh where did I put that darn time machine! Duke - - - -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: Thu, 30 May 2002 10:36:44 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] Today's WebLink This is a multi-part message in MIME format. - ------=_NextPart_000_0023_01C207C5.E47ACCC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks, Mike. I separate my sell rules into the following broad categories: - -At the breakout--B/O on low vol, short base, etc. (that's actually a = sell avoid), reversal day w. tail on B/O day - -Immediately following the B/O (1st wk or so)--7-8% rule, reversal day = on volume within a couple of days of B/O, fall and close below pivot on = volume Assuming it starts moving up and doesn't hit sell stop rule: - -1st 8 weeks--too many up days on low volume, down days on high volume; = RSLine begins to turn down when most everything else is moving up, = etc.-sell - -8 wk mark >=3D20%?, one set of sell rules kicks in that gives a bit = more leeway to the stock - -8 wk mark <20%?, if the rest of the market is healthy and this one = hasn't moved with it, it's a laggard, sell. If the market is choppy = and/or downtrending, but this remains healthy with support at key MA's = and trend lines, then it wouldn't be an outright sell simply because it = hasn't moved 20%+ in 8 wks. Key is market backdrop and industry condition more than anything. = Pullbacks are normal in an uptrend, the question is whether the stock is = showing a "normal/healthy" pullback or showing signs of wear. Also = critical would be the behavior of competitors and/or industry brethren. = If the stock is still healthy in its uptrend but darn near every other = industry brethren is breaking down, sell rules are more stringent. If = the stock is leading the pack on the way up, then sell rules are more = liberal. Katherine ----- Original Message -----=20 From: michael_niemotka@baxter.com=20 To: canslim@lists.xmission.com=20 Sent: Thursday, May 30, 2002 10:21 AM Subject: Re: [CANSLIM] Today's WebLink Katherine, VERY well put. I would ask this question to the group: How much time do you give a = new position to grow, assuming that you bought it at a breakout point. I = guess another way to phase the question is: how long after an breakout = attempt do you wait before backing out of the position (minus commisions of = course) to get the capital back for entry into another possible winner? Do any of you have any "rules" like: Need to see an X% gain within the first 4 weeks Other than the 7-8% loss rule I wonder if other get out sooner if it = looks like the breakout failed, or do you hold on for a few weeks. Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com = =20 "Katherine Malm" = =20 To: = canslim@lists.xmission.com =20 Sent by: cc: = =20 owner-canslim@lists.xm Subject: Re: = [CANSLIM] Today's WebLink =20 ission.com = =20 = =20 = =20 05/30/2002 09:33 AM = =20 Please respond to = =20 canslim = =20 = =20 = =20 Hi Duke, Churning is a well documented sign of distribution at the top and = isn't something pulled out of the air by the author. Below I've sited some resources from TradingMarkets.com (Loren F. used to write for the IBD) = and from Investors.com. With respect to HOV in general, just goes to show that sell rules = aren't all that cut and dried. Most of the sell "rules are actually = guidelines and are used to "stack up" the evidence so to speak. With HOV, I would go through a what-if similar to this: -Breakout from sound base? Yes 2/26, approx. $22.40 -Run up of >=3D20% in less than 8 wks? Yes. By 4/19 was up 38% -At this point, a subset of sell rules start to kick in: That is, if = the stocks runs up >=3D20% in 8 wks, you "may" want to sit through the = first correction. (from HTMMIS, paraphrased) -May comes along and HOV gets its first bout of churning and = distribution ( 5/6 heavy dist., 5/7 churning, 5/8 heavy dist.) -What to do? -Step 1: stack up the evidence pro: leading group, high RS and rising, market had FTD con: group has been on a long run since early 2000, = may be finished, many stocks breaking down Choice 1: Weigh in, make a descision to hold on based on the = >=3D20% in 8 wks guideline. Evidence you'll be looking for thereafter--support = at 50dMA, action of other stocks, etc. (similar to the Weblink article) -Choice 2: 2 days of heaving distribution + 1 churning =3D heavy evidence of unloading in 5 short days. Sell. As far as I've been able to figure out, sell rules are *not* cut and = dried. The individual's interpretation of the evidence, their tolerance for = pain, their profit goals in entering the position, the length of time = they've held the stock and current gains will weigh in to the decision. So, = two people decide completely differently given the same chart AND the same = set of WON/CANSLIM sell rules. Darn, wish it were more clear. I'd love to = do a calculation and punch a button in/out. Now wouldn't *that* be keen? -Katherine Here are a few articles I've uploaded on the subject: http://WallStreet-LLC.com/canslim/NewHighLightVol011901.JPG http://WallStreet-LLC.com/canslim/NewHighsWeakVol060600.JPG http://WallStreet-LLC.com/canslim/BuySellTipsVol102301.JPG http://WallStreet-LLC.com/canslim/StickWithLeaders101000.JPG =3D=3D=3D=3D=3D=3D=3D=3D=3D Q: Eric S. Hill: How is it that a stock can trade many times its = average volume on a given day with hardly any price hange? Is this to be = considered bullish or bearish? Loren Fleckenstein: A: Eric: You cannot apply a mechanical rule that applies to all siutations. However, generally speaking, what you're describing is = called "churning." Churning after a stock has made an extended advance could = be bearish and a tip-off of a major price decline to come. Churning after = a stock has suffered a major downturn could be bullish and signal that = the stock is near a bottom. =3D=3D=3D=3D=3D=3D Question (Ask Bill O'Neil): How do I know when to sell a well-performing stock to protect my = gains? Answer: Many investors don't pay much attention to sell rules. But they are = just as important as buy rules. After a stock has had a significant run-up, = look for signs of fatigue. One is what we call "churning." That's when the stock trades on comparatively heavy volume but can't manage to make meaningful price = gains. Another red flag is when the stock makes a new price high on low = volume. Also troubling is when the stock repeatedly falls as volume increases. Some stocks that double or go even higher over several months will = peak in a "climax top" characterized by a couple of weeks in which the price = bursts up 25% to 50% or more on heavy volume. Also watch for weakness in the stock's industry group, as well as the general market. ----- Original Message ----- From: Tom Worley To: canslim@lists.xmission.com Sent: Thursday, May 30, 2002 8:43 AM Subject: Re: [CANSLIM] Today's WebLink Duke, I would be a lot more impressed with IBD if they had reported = that potential sell signal just a day or two later, rather than weeks = later. On the other hand, I would disagree that selling the next day was necessarily the right action. We see many signals, both buy and sell, = as well as hold. It is the collective accumulation of those signals that should trigger an action, in most cases (the 8% stop loss rule being = one of the few that stands on its own). I realize that IBD is not being paid for specific investment advice, = and likely would not want to precipitate a correction by reporting every = sell signal immediately. But I do agree, all these new rules they seem to = be coming up with, are they their interpretation of CANSLIM, or is this actually coming from WON? ----- Original Message ----- From: Duke Miller To: CANSLIM Sent: Thursday, May 30, 2002 9:02 AM Subject: [CANSLIM] Today's WebLink Bulletin: Here we go again with some new CANSLIM tactics springing = from WON's perfect hindsight in today's WebLink on HOV. I quote: But on May 8, the stock notched a new intraday high on quiet trade = and finished lower that day (Point 4). New highs on low volume are one = sign that demand is waning and pose as a key sell signal. However, given = that the stock was only in the 10th week of its advance, it can be worth waiting to see if a rally still has juice. Over the next week and a = half, Hovnanian fell hard and clipped its 50-day line on heavy trade (Point = 5). On May 16, the stock closed below its 50-day for the first time since November. But from the next day, it began clawing its way back above = the key intermediate trend line. The first new lesson (to me, anyway) is couched in the statement, = "But (operative word) on May 8...a new intraday high on quiet trade...a = key sell signal." When I look at the chart on May 8, I see something different: It tells me the stock closed down that day on low volume. = I thought this was a good sign. But now its a bad sign, because it = reached a new "intraday" high on light volume. Maybe I was in the men's room during the advanced seminar when they covered this. :) My point is, if you new about the "intraday high on low volume sell = rule," wouldn't you have SOLD the next morning at the open? (If you didn't, = then today's Investor's Corner is for naught.) But wait a minute, lo and behold, yet another new rule surfaces: "However, given that the stock was only in the 10th week of its = advance, it can be worth waiting to see if the rally still has juice." Where = in the 24 Rules is that hidden? I searched the whole Investors.com for "rally juice" and nada. In hindsight, the fact remains, if you held HOV, you would be wise to = have sold on the new intraday high on low volume. That is, if you knew = about that rule. I guess we learn something new every day, don't we? Where oh where = did I put that darn time machine! Duke - -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_0023_01C207C5.E47ACCC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Thanks, Mike.
 
I separate my sell rules into the following broad categories:
 
-At the breakout--B/O on low vol, short base, etc. (that's actually = a sell=20 avoid), reversal day w. tail on B/O day
-Immediately following the B/O (1st wk or so)--7-8% rule, reversal = day on=20 volume within a couple of days of B/O, fall and close below pivot on=20 volume
 
Assuming it starts moving up and doesn't hit sell stop rule:
-1st 8 weeks--too many up days on low volume, down days on high = volume;=20 RSLine begins to turn down when most everything else is moving up,=20 etc.-sell
-8 wk mark >=3D20%?, one set of sell rules kicks in that gives a = bit more=20 leeway to the stock
-8 wk mark <20%?, if the rest of the market is healthy and this = one=20 hasn't moved with it, it's a laggard, sell. If the market is choppy = and/or=20 downtrending, but this remains healthy with support at key MA's and = trend lines,=20 then it wouldn't be an outright sell simply because it hasn't moved 20%+ = in 8=20 wks.
 
Key is market backdrop and industry condition more than anything. = Pullbacks=20 are normal in an uptrend, the question is whether the stock is showing a = "normal/healthy" pullback or showing signs of wear. Also critical would = be the=20 behavior of competitors and/or industry brethren. If the stock is still = healthy=20 in its uptrend but darn near every other industry brethren is breaking = down,=20 sell rules are more stringent. If the stock is leading the pack on the = way up,=20 then sell rules are more liberal.
 
Katherine
 
----- Original Message -----
From:=20 michael_niemotka@baxter.com=20
Sent: Thursday, May 30, 2002 = 10:21=20 AM
Subject: Re: [CANSLIM] Today's=20 WebLink


Katherine,

VERY well put.

I would ask = this=20 question to the group:  How much time do you give a = new
position to=20 grow, assuming that you bought it at a breakout point.  I=20 guess
another way to phase the question is: how long after an = breakout=20 attempt do
you wait before backing out of the position (minus = commisions of=20 course) to
get the capital back for entry into another possible=20 winner?

Do any of you have any "rules" like: Need to see an X% = gain=20 within the
first 4 weeks

Other than  the 7-8% loss rule = I=20 wonder if other get out sooner if it looks
like the breakout = failed, or do=20 you hold on for a few weeks.

Thanks

Mike Niemotka , = PE
Sr.=20 Principal Engineer
Baxter Healthcare Corporation
Route 120 & = Wilson=20 Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) = 270-4525
michael_niemotka@baxter.com


          = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;   =20 =
           &nb= sp;       =20 "Katherine=20 = Malm"           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;  =20 =
           &nb= sp;       =20 <kmalm@earthlink.net> &nbs= p;      =20 To:     canslim@lists.xmission.com=             &= nbsp;           &n= bsp;           &nb= sp;  =20 =
           &nb= sp;       =20 Sent=20 = by:           &nbs= p;         =20 = cc:           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;         =20 =
           &nb= sp;       =20 owner-canslim@lists.xm &n= bsp;     =20 Subject:     Re: [CANSLIM] Today's=20 = WebLink           =             &= nbsp;       =20 =
           &nb= sp;       =20 = ission.com          &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;         =20 =
           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =   =20 =
           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =   =20 =
           &nb= sp;       =20 05/30/2002 09:33=20 = AM            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;           =20 =
           &nb= sp;       =20 Please respond=20 = to            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ; =20 =
           &nb= sp;       =20 = canslim           =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =              = =
           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =   =20 =
           &nb= sp;           &nbs= p;            = ;            =             &= nbsp;           &n= bsp;           &nb= sp;           &nbs= p;            = ;            =   =20




Hi Duke,

Churning is a well documented sign = of=20 distribution at the top and isn't
something pulled out of the air = by the=20 author. Below I've sited some
resources from TradingMarkets.com = (Loren F.=20 used to write for the IBD) and
from Investors.com.

With = respect to=20 HOV in general, just goes to show that sell rules aren't
all that = cut and=20 dried. Most of the sell "rules are actually guidelines and
are used = to=20 "stack up" the evidence so to speak.

With HOV, I would go = through a=20 what-if similar to this:
-Breakout from sound base? Yes 2/26, = approx.=20 $22.40
-Run up of >=3D20% in less than 8 wks? Yes. By 4/19 was = up=20 38%
-At this point, a subset of sell rules start to kick in: That = is, if=20 the
stocks runs up >=3D20% in 8 wks, you "may" want to sit = through the=20 first
correction. (from HTMMIS, paraphrased)
-May comes along = and HOV=20 gets its first bout of churning and distribution
( 5/6 heavy dist., = 5/7=20 churning, 5/8 heavy dist.)
-What to = do?
     =20 -Step 1: stack up the=20 = evidence
          &= nbsp;    =20 pro: leading group, high RS and rising, market had=20 = FTD
           =     =20 con: group has been on a long run since early 2000, may = be
finished, many=20 stocks breaking = down
        =20 Choice 1: Weigh in, make a descision to hold on based on the = >=3D20%
in 8=20 wks guideline. Evidence you'll be looking for thereafter--support = at
50dMA,=20 action of other stocks, etc. (similar to the Weblink=20 article)
      -Choice 2: 2 days of = heaving=20 distribution + 1 churning =3D heavy
evidence of unloading in 5 = short days.=20 Sell.

As far as I've been able to figure out, sell rules are = *not* cut=20 and dried.
The individual's interpretation of the evidence, their = tolerance=20 for pain,
their profit goals in entering the position, the length = of time=20 they've
held the stock and current gains will weigh in to the = decision. So,=20 two
people decide completely differently given the same chart AND = the same=20 set
of WON/CANSLIM sell rules. Darn, wish it were more clear. I'd = love to=20 do a
calculation and punch a button in/out. Now wouldn't *that* be=20 keen?

-Katherine

Here are a few articles I've uploaded = on the=20 subject:

http= ://WallStreet-LLC.com/canslim/NewHighLightVol011901.JPG

http= ://WallStreet-LLC.com/canslim/NewHighsWeakVol060600.JPG

http:= //WallStreet-LLC.com/canslim/BuySellTipsVol102301.JPG

htt= p://WallStreet-LLC.com/canslim/StickWithLeaders101000.JPG


=
=3D=3D=3D=3D=3D=3D=3D=3D=3D
Q:  =20 Eric S. Hill: How is it that a stock can trade many times its=20 average
volume on a given day with hardly any price hange? Is this = to be=20 considered
bullish or bearish?

Loren=20 Fleckenstein:

A:   Eric: You cannot apply a = mechanical rule=20 that applies to all
siutations. However, generally speaking, what = you're=20 describing is called
"churning." Churning after a stock has made an = extended advance could be
bearish and a tip-off of a major price = decline to=20 come. Churning after a
stock has suffered a major downturn could be = bullish=20 and signal that the
stock is near a = bottom.

=3D=3D=3D=3D=3D=3D
Question (Ask=20 Bill O'Neil):
How do I know when to sell a well-performing stock to = protect=20 my gains?

Answer:
Many investors don't pay much attention to = sell=20 rules. But they are just as
important as buy rules. After a stock = has had a=20 significant run-up, look
for signs of fatigue.

One is what = we call=20 "churning." That's when the stock trades on
comparatively heavy = volume but=20 can't manage to make meaningful price gains.


Another red = flag is=20 when the stock makes a new price high on low volume.
Also troubling = is when=20 the stock repeatedly falls as volume increases.

Some stocks = that double=20 or go even higher over several months will peak in
a "climax top"=20 characterized by a couple of weeks in which the price bursts
up 25% = to 50%=20 or more on heavy volume. Also watch for weakness in the
stock's = industry=20 group, as well as the general market.
 ----- Original Message=20 -----
 From: Tom Worley
 To: canslim@lists.xmission.com=
 Sent:=20 Thursday, May 30, 2002 8:43 AM
 Subject: Re: [CANSLIM] Today's = WebLink

 Duke, I would be a lot more impressed with IBD if = they=20 had reported that
 potential sell signal just a day or two = later,=20 rather than weeks later.

 On the other hand, I would = disagree that=20 selling the next day was
 necessarily the right action. We see = many=20 signals, both buy and sell, as
 well as hold. It is the = collective=20 accumulation of those signals that
 should trigger an action, = in most=20 cases (the 8% stop loss rule being one
 of the few that stands = on its=20 own).

 I realize that IBD is not being paid for specific=20 investment advice, and
 likely would not want to precipitate a = correction by reporting every sell
 signal immediately. But I = do=20 agree, all these new rules they seem to be
 coming up with, = are they=20 their interpretation of CANSLIM, or is this
 actually coming = from=20 WON?

 ----- Original Message -----
 From: Duke=20 Miller
 To: CANSLIM
 Sent: Thursday, May 30, 2002 9:02 = AM
 Subject: [CANSLIM] Today's = WebLink

 Bulletin: =20 Here we go again with some new CANSLIM tactics springing = from
 WON's=20 perfect hindsight in today's WebLink on HOV.  I = quote:

 But=20 on May 8, the stock notched a new intraday high on quiet trade=20 and
 finished lower that day (Point 4). New highs on low = volume are=20 one sign
 that demand is waning and pose as a key sell signal. = However, given that
 the stock was only in the 10th week of = its=20 advance, it can be worth
 waiting to see if a rally still has = juice.=20 Over the next week and a half,
 Hovnanian fell hard and = clipped its=20 50-day line on heavy trade (Point 5).
 On May 16, the stock = closed=20 below its 50-day for the first time since
 November. But from = the next=20 day, it began clawing its way back above the
 key intermediate = trend=20 line.

 The first new lesson (to me, anyway) is couched in = the=20 statement, "But
 (operative word) on May 8...a new intraday = high on=20 quiet trade...a key
 sell signal."  When I look at the = chart on=20 May 8, I see something
 different:  It tells me the stock = closed=20 down that day on low volume.  I
 thought this was a good=20 sign.  But now its a bad sign, because it reached
 a new=20 "intraday" high on light volume.  Maybe I was in the men's=20 room
 during the advanced seminar when they covered = this. =20 :)

 My point is, if you new about the "intraday high on = low volume=20 sell rule,"
 wouldn't you have SOLD the next morning at the=20 open?  (If you didn't, then
 today's Investor's Corner is = for=20 naught.)

 But wait a minute, lo and behold, yet another = new rule=20 surfaces:
 "However, given that the stock was only in the 10th = week of=20 its advance,
 it can be worth waiting to see if the rally = still has=20 juice."  Where in
 the 24 Rules is that hidden?  I = searched=20 the whole Investors.com for
 "rally juice" and = nada.

 In=20 hindsight, the fact remains, if you held HOV, you would be wise to=20 have
 sold on the new intraday high on low volume. That is, if = you=20 knew about
 that rule.

 I guess we learn something = new=20 every day, don't we?  Where oh where did I
 put that darn = time=20 = machine!


 Duke









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