From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2690 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 Wednesday, July 31 2002 Volume 02 : Number 2690 In this issue: Re: [CANSLIM] banks [CANSLIM] Today's big picture/m RE: [CANSLIM] banks Re: [CANSLIM] Cramer Re: [CANSLIM] Cramer Re: [CANSLIM] Today's big picture/m Re: [CANSLIM] Cramer Re: [CANSLIM] JCOM Re: [CANSLIM] JCOM ---------------------------------------------------------------------- Date: Wed, 31 Jul 2002 08:33:36 -0700 From: "zillagirl" Subject: Re: [CANSLIM] banks david-that's interesting you would say that. That would have never crossed my mind. Can you explain how you would come up with a figure for me? Thanks - ----- Original Message ----- From: "David Taggart" To: Sent: Wednesday, July 31, 2002 8:21 AM Subject: RE: [CANSLIM] banks > they could have gotten more > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of zillagirl > Sent: Wednesday, July 31, 2002 9:23 AM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] banks > > > news out on vibc today-a dutch bank is buying for 15.10 a share. > ----- Original Message ----- > From: "Ann" > To: "CANSLIM Listserv" > Sent: Wednesday, July 31, 2002 8:07 AM > Subject: [CANSLIM] banks > > > > It seems that the bank stocks are defying the M. > > > > Did anyone catch VIBC?? > > > > Ann > > > > > > - > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your email. > > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 08:33:22 -0700 (PDT) From: Eric Jaenike Subject: [CANSLIM] Today's big picture/m - --0-220079618-1028129602=:25584 Content-Type: text/plain; charset=us-ascii A quick note on today's Big Picture. Referring to action on the S&P, the author states that price/volume action implies "mild accumulation". I strongly disagree with that. I consider the action on that index to be a sign of distribution as well, as it is indicative of stalling action. From HTMMIS, 2nd edition, pg. 50: "On one of the days in the uptrend, the total volume for the market will increase over the preceding day's high volume, but the Dow's (or any index) closing average will show stalling action, or substantially less upward movement, than on the prior few days". One other note: the Nasdaq is the only primary index to have flashed a follow through (not including the S&P 600). It also was the index that experienced the nasty give back last Thursday. That giveback was not a good sign. Also, the news that drove the giveback was ominous: Taiwan Semiconductor, the largest chip fab in the industry, announced a nasty revenue miss, revenue guidedown, capex reduction, and capacity utilization reduction to 70%. That is a terrible sign for the chip industry going forward. Also of interest is the NVDA miss last night, as they sell into the PC industry (as well as to Xbox, but I consider that to be an unimportant segment). So far, I consider the action in this latest rally to be very poor. For those interested in another item to watch, I think the action in MSFT, C, and JPM are of some importance (as well as the XLF in general). Their breaks and subsequent (poor) rebounds are, in my opinion, an important tell on where the market is. Eric - --------------------------------- Do You Yahoo!? Yahoo! Health - Feel better, live better - --0-220079618-1028129602=:25584 Content-Type: text/html; charset=us-ascii

A quick note on today's Big Picture. Referring to action on the S&P, the author states that price/volume action implies "mild accumulation". I strongly disagree with that. I consider the action on that index to be a sign of distribution as well, as it is indicative of stalling action. From HTMMIS, 2nd edition, pg. 50: "On one of the days in the uptrend, the total volume for the market will increase over the preceding day's high volume, but the Dow's (or any index) closing average will show stalling action, or substantially less upward movement, than on the prior few days".

One other note: the Nasdaq is the only primary index to have flashed a follow through (not including the S&P 600). It also was the index that experienced the nasty give back last Thursday. That giveback was not a good sign. Also, the news that drove the giveback was ominous: Taiwan Semiconductor, the largest chip fab in the industry, announced a nasty revenue miss, revenue guidedown, capex reduction, and capacity utilization reduction to 70%. That is a terrible sign for the chip industry going forward. Also of interest is the NVDA miss last night, as they sell into the PC industry (as well as to Xbox, but I consider that to be an unimportant segment).

So far, I consider the action in this latest rally to be very poor. For those interested in another item to watch, I think the action in MSFT, C, and JPM are of some importance (as well as the XLF in general). Their breaks and subsequent (poor) rebounds are, in my opinion, an important tell on where the market is.

Eric


Do You Yahoo!?
Yahoo! Health - Feel better, live better - --0-220079618-1028129602=:25584-- - - - -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: Wed, 31 Jul 2002 09:37:33 -0600 From: "David Taggart" Subject: RE: [CANSLIM] banks Well usually when you get bought you can get more then a 1 dollar premium especially when your company and its sector are doing great. They should have gotten 20 or more not 15. Of course maybe the management owns most of the company and they are getting some huge salries. - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of zillagirl Sent: Wednesday, July 31, 2002 9:34 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] banks david-that's interesting you would say that. That would have never crossed my mind. Can you explain how you would come up with a figure for me? Thanks - ----- Original Message ----- From: "David Taggart" To: Sent: Wednesday, July 31, 2002 8:21 AM Subject: RE: [CANSLIM] banks > they could have gotten more > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of zillagirl > Sent: Wednesday, July 31, 2002 9:23 AM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] banks > > > news out on vibc today-a dutch bank is buying for 15.10 a share. > ----- Original Message ----- > From: "Ann" > To: "CANSLIM Listserv" > Sent: Wednesday, July 31, 2002 8:07 AM > Subject: [CANSLIM] banks > > > > It seems that the bank stocks are defying the M. > > > > Did anyone catch VIBC?? > > > > Ann > > > > > > - > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your email. > > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -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: Wed, 31 Jul 2002 11:59:24 -0400 From: Spencer48@aol.com Subject: Re: [CANSLIM] Cramer Canslimmers: I can't believe how many people answered David's E-mail which said that Kudlow said that he reads IBD. I saw the show, and am pretty certain it was Kramer who said that he (Kramer) reads, and-in effect-is an avid follower of WON's theories. Moreover, I thought I was a pretty apropos question. Not everyone subscribes to IBD and knows that WON doesn't pay much attention to PEs. Also, I was interested in hearing if WON has changed his opinion on "...not paying attention to PEs"-especially in regard to the earnings scandals in the Bear market. jans In a message dated Mon, 29 Jul 2002 7:38:45 PM Eastern Standard Time, alensing@prodigy.net writes: > David: > > Great point! > > > ----- Original Message ----- > From: David Taggart > To: canslim@lists.xmission.com > Sent: Monday, July 29, 2002 7:29 PM > Subject: [CANSLIM] Cramer > > > Gotta love the P/E ? Kudlow asked WON about P/E he says I dont really pay attention to it. If he really reads the > paper why did he bother asking that question? - - - -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: Wed, 31 Jul 2002 11:59:51 -0400 From: "Ann" Subject: Re: [CANSLIM] Cramer I though both Kudlow *and* Cramer said that they read ibd. Ann - ----- Original Message ----- From: To: Sent: Wednesday, July 31, 2002 11:59 AM Subject: Re: [CANSLIM] Cramer : Canslimmers: : : I can't believe how many people answered David's E-mail which said that Kudlow said that he reads IBD. I saw the show, and am pretty certain it was Kramer who said that he (Kramer) reads, and-in effect-is an avid follower of WON's theories. : : Moreover, I thought I was a pretty apropos question. Not everyone subscribes to IBD and knows that WON doesn't pay much attention to PEs. Also, I was interested in hearing if WON has changed his opinion on "...not paying attention to PEs"-especially in regard to the earnings scandals in the Bear market. : : jans : : : In a message dated Mon, 29 Jul 2002 7:38:45 PM Eastern Standard Time, alensing@prodigy.net writes: : : > David: : > : > Great point! : > : > : > ----- Original Message ----- : > From: David Taggart : > To: canslim@lists.xmission.com : > Sent: Monday, July 29, 2002 7:29 PM : > Subject: [CANSLIM] Cramer : > : > : > Gotta love the P/E ? Kudlow asked WON about P/E he says I dont really pay attention to it. If he really reads the : > paper why did he bother asking that question? : : : : - : -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: Wed, 31 Jul 2002 09:01:54 -0700 From: "Bill Triffet" Subject: Re: [CANSLIM] Today's big picture/m It also stated "Short sellers covering their positions and retail buyers pushed the NYSE higher. Neither class of investor can sustain a new bull market." I can't recall the last time IBD mentioned (admitted) short sellers and or retail investors were actually moving an index. Still a good time to to make those lists. But still I whine...banks stocks?...sheesh. - -Bill - ----- Original Message ----- From: "Eric Jaenike" To: "canslim group" Sent: Wednesday, July 31, 2002 8:33 AM Subject: [CANSLIM] Today's big picture/m > > A quick note on today's Big Picture. Referring to action on the S&P, the author states that price/volume action implies "mild accumulation". I strongly disagree with that. I consider the action on that index to be a sign of distribution as well, as it is indicative of stalling action. From HTMMIS, 2nd edition, pg. 50: "On one of the days in the uptrend, the total volume for the market will increase over the preceding day's high volume, but the Dow's (or any index) closing average will show stalling action, or substantially less upward movement, than on the prior few days". > > One other note: the Nasdaq is the only primary index to have flashed a follow through (not including the S&P 600). It also was the index that experienced the nasty give back last Thursday. That giveback was not a good sign. Also, the news that drove the giveback was ominous: Taiwan Semiconductor, the largest chip fab in the industry, announced a nasty revenue miss, revenue guidedown, capex reduction, and capacity utilization reduction to 70%. That is a terrible sign for the chip industry going forward. Also of interest is the NVDA miss last night, as they sell into the PC industry (as well as to Xbox, but I consider that to be an unimportant segment). > > So far, I consider the action in this latest rally to be very poor. For those interested in another item to watch, I think the action in MSFT, C, and JPM are of some importance (as well as the XLF in general). Their breaks and subsequent (poor) rebounds are, in my opinion, an important tell on where the market is. > > Eric > > > > --------------------------------- > Do You Yahoo!? > Yahoo! Health - Feel better, live better - - - -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: Wed, 31 Jul 2002 12:05:52 -0400 From: Spencer48@aol.com Subject: Re: [CANSLIM] Cramer Duke: I saw the show also (Kudlow & Kramer), and I understood WON to say that the leading industries that are leading us out of this Bear are those which are in the consumer sector. He specifically cited that techs-and especially the techs that have fallen-may rally, but they are not (and will not be the) leaders. jans In a message dated Mon, 29 Jul 2002 8:31:50 PM Eastern Standard Time, dukemill@tampabay.rr.com writes: > The only thing I learned from this show tonight is Autozone (I don't have a position yet) is one hell of a company and possibly the "model" for tomorrow's winners. And Bill O'Neil pretty much brushed them off, answering a question about Autozone with his "there are no apparent new leaders" mantra. > > For those of you who did not see the show tonight, you missed nothing from Bill. He just towed the usual CANSLIM Investors Corner line. And obviously, no call on whether or not today was an FTD. That remains to be called after (way after?) > the fact...as usual. > - - - -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: Wed, 31 Jul 2002 12:09:30 -0400 From: "Donald Wallker" Subject: Re: [CANSLIM] JCOM This is a multi-part message in MIME format. - ------=_NextPart_000_002C_01C2388B.1FD41EC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ann -- The breakout from the double base, per the aforementioned IBD = article, occurred on Friday, when he Shares closed at $18.28. I don't = believe you would refer to the second base as an "ascending base" but I = would prefer to hear an answer from someone else in this group, because = I don't perceive myself to be that well versed in CANSLIM analysis. = For whateveer it is worth I may have made a mistake in perceiving the = second breakout to be at $18.28, but, mistake or not, I thought I was = lucky to have the chance to buy in in today at $19.10 considering the = post breakout action of the stock, the IBD ratings and JCOM's upbeat = guidance concerning future earnings. However, please note that this is = not a recommendation to you or to anyone else to buy the stock.. I have = mentioned other stocks in this Forum and gotten feedback that is so = negative that one of the members of the group checked out the stock to = determine if should be shorted rether than bought into....Donald .=20 Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 11:04 AM Subject: [CANSLIM] JCOM Is that an ascending base? If so, it is way extended beyond the pivot = of 17.55, I think. Ann ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 10:59 AM Subject: Re: [CANSLIM] DCOM - B/O rules Ann -- If you would like to look at another stock to check out, try = JCOM. Its overall rating is 98 A plus, its 1st in all rankings of 35 = stocks in its group., its ratings are 81,99,A plus, C and A minus. I = wonder if it might be considered a good buy today, since "M" is driving = it down after a couple of great days from the breakout. - Donald ----- Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 8:50 AM Subject: Re: [CANSLIM] DCOM - B/O rules I have written down (though I don't know where I got it) that WON = says that in this M, we can accept handles which go as low as = 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot. Ann ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 12:37 AM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you = have is a hammer, everything looks like a nail!) because the two dips = were not of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then = went on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says that a stock should only correct by at most 15% in the handle = (although there are inconsistent statements on this) so it didn't = qualify as a CwH either (but then virtually nothing has in the last = couple of weeks). Nevertheless, todays breakout was very strong and = could be buyable up to $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody = else, but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just = the start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point = typically occurs when the stock clears the peak in the middle of the = W-shaped pattern. Sometimes, double bottoms will form handles before = they reach this point. In those situations, the pivot point is when the = stock clears the highest price point in the handle area. The handle = should drift downward slightly and usually form over a period of one to = seven weeks. Course 1 in the IBD Learning Center on our Web site has = a lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What = Can Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of = Q&A's on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o = from a double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 = Monday, just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, = this seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to = have b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and = that is above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is = 378% up from the day before and four times the average daily volume of = 221,100 What is the exact rule for a breakout mathematically? (Lets = say that I were to program it in say Metastock?) Base on this case I can see two rules at least (in = pseudo-code): IF today's high is greater than the previous high (is this = the all time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume = (is this some sort of moving average of the daily volume, or just = yeaterday's volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M = for a moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_002C_01C2388B.1FD41EC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ann --   The breakout from = the double=20 base, per the aforementioned IBD article, occurred on Friday, when he = Shares=20 closed at $18.28. I don't believe you would refer to the second = base as an=20 "ascending base" but I would prefer to hear an answer from someone = else  in=20 this group, because I  don't perceive myself to be that well versed = in=20 CANSLIM analysis.  For whateveer it is worth I may have made a = mistake in=20 perceiving the second breakout to be at $18.28, but, mistake or not, I = thought I=20 was lucky to have the chance to buy in  in today at $19.10 = considering=20 the post breakout action of the = stock, the=20 IBD ratings and JCOM's upbeat guidance concerning future earnings. = However,=20 please note that this is not a recommendation to you or to = anyone=20 else to buy the stock.. I have mentioned other stocks in this Forum = and=20 gotten feedback that is so negative that one of the members of the group = checked=20 out the stock to determine if should be shorted rether than bought=20 into....Donald . 
 
Original Message -----
From:=20 Ann
Sent: Wednesday, July 31, 2002 = 11:04=20 AM
Subject: [CANSLIM] JCOM

Is that an ascending base? If so, it is way = extended beyond=20 the pivot of 17.55, I think.
Ann
----- Original Message -----
From:=20 Donald = Wallker=20
Sent: Wednesday, July 31, = 2002 10:59=20 AM
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Ann -- If you would like to look at = another=20 stock to check out, try JCOM.  Its overall rating is 98 A plus, = its 1st=20 in all rankings of 35 stocks in its group., its ratings are 81,99,A = plus, C=20 and A minus.  I wonder if it might be considered a good buy = today,=20 since "M" is driving it down after a couple  of great days from = the=20 breakout. - Donald
----- Original Message ----- =
From:=20 Ann=20
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002 8:50=20 AM
Subject: Re: [CANSLIM] DCOM = - - B/O=20 rules

I have written down (though I don't know where = I got it)=20 that WON says that in this M, we can accept handles which go as = low as=20 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot.
 
Ann
----- Original Message ----- =
From:=20 Mike Gibbons =
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002=20 12:37 AM
Subject: RE: [CANSLIM] = DCOM - B/O=20 rules

I see it more as a cup-with-handle (but when the only = tool you=20 have is a hammer, everything looks like a nail!) because the two = dips=20 were not of equal depth, but I'm not sure what the tolerance = limits=20 are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. = It then=20 went on to dip to a low of $20.20 in the handle, which was a 22% = drop.=20 WON says that a stock should only correct by at most 15% in the = handle=20 (although there are inconsistent statements on this) so it = didn't=20 qualify as a CwH either (but then virtually nothing has in the = last=20 couple of weeks). Nevertheless, todays breakout was very strong = and=20 could be buyable up to $27.12 (5% above = pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] = DCOM - B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to = somebody=20 else, but in the meantime, here's something to get you = started:
 
Question
  Can a double-bottom base have a = handle, or is=20 it just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the=20 pivot (buy) point typically occurs when the stock clears = the=20 peak in the middle of the W-shaped = pattern.=20 Sometimes, double bottoms will form handles before they = reach=20 this point. In those situations, the pivot point is when = the=20 stock clears the highest price point in the handle area. = The=20 handle should drift downward slightly and usually form = over a=20 period of one to seven weeks.

Course 1 in the IBD = Learning Center on our Web site has a lesson on chart = reading.=20 To get there directly, go to this link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive = entitled =93What=20 Can Technical Indicators Tell Me?=94 to view past = articles on this=20 topic - http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link = - - = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July = 30, 2002=20 7:18 PM
Subject: [CANSLIM] = DCOM - B/O=20 rules

MessageOn Wedsday's edition (today) IBD = listed DCOM=20 as b/o from a double
bottom.  On Tuesday IBD weblink = said "=20 ... Dime hit 25.94 Monday, just
missing a breakout..."=20 .

As a newbie trying to learn more about charts and=20 breakouts, this seems like
a great example to check my=20 understanding.

If I am getting it right, the reason = why DCOM=20 is deemed to have b/o is
because of the following two=20 easons:

a) It closed at 26.90 having achieved an high = of=20 27.0, and that is above the
previous high of 26.80 back = in May=20 17, 2002.

b) The new high was achieved at a volume = 1,056,800=20 which is 378% up from the
day before and four times the = average=20 daily volume of 221,100

What is the exact rule for a = breakout=20 mathematically? (Lets say that I were
to program it in = say=20 Metastock?)

Base on this case I can see two rules at = least=20 (in pseudo-code):

IF today's high is greater than the = previous high (is this the all time high
or just the = rolling 52=20 week high?)
AND
IF today's volume is greater than N = times the=20 normal volume (is this some
sort of moving average of the = daily=20 volume, or just yeaterday's volume)
THEN yippe it is a=20 B/O

Is  there any "fuzziness" to the above=20 rules?

BTW, the fundamentals on DCOM also look great, = ignoring M for a moment, is
this a valid CANSLIM = candidate=20 stock?

Rgds

Victor=20 = Chang


- ------=_NextPart_000_002C_01C2388B.1FD41EC0-- - - - -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: Wed, 31 Jul 2002 12:24:36 -0400 From: "Ann" Subject: Re: [CANSLIM] JCOM This is a multi-part message in MIME format. - ------=_NextPart_000_0171_01C2388D.3BE36E20 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Donald, I guess it's not an ascending base, if IBD says it's not! I'm glad you = clarified. As Katherine recently wrote, the ascending base is 3 consecutive = pullbacks, each with higher highs and higher lows. I had thought that a = base-on-base needed a week or two between the 2 bases to qualify, but I = gather that was wrong. But, hey, I'm still learning too!! Good luck with your trade. Ann ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 12:09 PM Subject: Re: [CANSLIM] JCOM Ann -- The breakout from the double base, per the aforementioned IBD = article, occurred on Friday, when he Shares closed at $18.28. I don't = believe you would refer to the second base as an "ascending base" but I = would prefer to hear an answer from someone else in this group, because = I don't perceive myself to be that well versed in CANSLIM analysis. = For whateveer it is worth I may have made a mistake in perceiving the = second breakout to be at $18.28, but, mistake or not, I thought I was = lucky to have the chance to buy in in today at $19.10 considering the = post breakout action of the stock, the IBD ratings and JCOM's upbeat = guidance concerning future earnings. However, please note that this is = not a recommendation to you or to anyone else to buy the stock.. I have = mentioned other stocks in this Forum and gotten feedback that is so = negative that one of the members of the group checked out the stock to = determine if should be shorted rether than bought into....Donald .=20 Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 11:04 AM Subject: [CANSLIM] JCOM Is that an ascending base? If so, it is way extended beyond the = pivot of 17.55, I think. Ann ----- Original Message -----=20 From: Donald Wallker=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 10:59 AM Subject: Re: [CANSLIM] DCOM - B/O rules Ann -- If you would like to look at another stock to check out, = try JCOM. Its overall rating is 98 A plus, its 1st in all rankings of = 35 stocks in its group., its ratings are 81,99,A plus, C and A minus. I = wonder if it might be considered a good buy today, since "M" is driving = it down after a couple of great days from the breakout. - Donald ----- Original Message -----=20 From: Ann=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 8:50 AM Subject: Re: [CANSLIM] DCOM - B/O rules I have written down (though I don't know where I got it) that = WON says that in this M, we can accept handles which go as low as = 20-30%--also, that we shouldn't chase a stock more than 2-3% above = pivot. Ann ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 12:37 AM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you = have is a hammer, everything looks like a nail!) because the two dips = were not of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then = went on to dip to a low of $20.20 in the handle, which was a 22% drop. = WON says that a stock should only correct by at most 15% in the handle = (although there are inconsistent statements on this) so it didn't = qualify as a CwH either (but then virtually nothing has in the last = couple of weeks). Nevertheless, todays breakout was very strong and = could be buyable up to $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to = somebody else, but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it = just the start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point = typically occurs when the stock clears the peak in the middle of the = W-shaped pattern. Sometimes, double bottoms will form handles before = they reach this point. In those situations, the pivot point is when the = stock clears the highest price point in the handle area. The handle = should drift downward slightly and usually form over a period of one to = seven weeks. Course 1 in the IBD Learning Center on our Web site = has a lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled = "What Can Technical Indicators Tell Me?" to view past articles on this = topic - http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of = Q&A's on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o = from a double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 = Monday, just missing a breakout..." . As a newbie trying to learn more about charts and = breakouts, this seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to = have b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and = that is above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which = is 378% up from the day before and four times the average daily volume of = 221,100 What is the exact rule for a breakout mathematically? = (Lets say that I were to program it in say Metastock?) Base on this case I can see two rules at least (in = pseudo-code): IF today's high is greater than the previous high (is this = the all time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal = volume (is this some sort of moving average of the daily volume, or just = yeaterday's volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M = for a moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_0171_01C2388D.3BE36E20 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Donald,
 
I guess it's not an ascending base, if IBD says it's = not! I'm=20 glad you clarified.
 
As Katherine recently wrote, the ascending base is 3 = consecutive pullbacks, each with higher highs and higher lows. I had = thought=20 that a base-on-base needed a week or two between the 2 bases to qualify, = but I=20 gather that was wrong.
 
But, hey, I'm still learning too!!
 
Good luck with your trade.
Ann
----- Original Message -----
From:=20 Donald = Wallker=20
Sent: Wednesday, July 31, 2002 = 12:09=20 PM
Subject: Re: [CANSLIM] = JCOM

Ann --   The breakout from = the double=20 base, per the aforementioned IBD article, occurred on Friday, when he = Shares=20 closed at $18.28. I don't believe you would refer to the second = base as=20 an "ascending base" but I would prefer to hear an answer from someone=20 else  in this group, because I  don't perceive myself to be = that=20 well versed in CANSLIM analysis.  For whateveer it is worth I may = have=20 made a mistake in perceiving the second breakout to be at $18.28, but, = mistake=20 or not, I thought I was lucky to have the chance to buy in =  in today=20 at $19.10 considering the post = breakout=20 action of the stock, the IBD ratings and JCOM's upbeat guidance=20 concerning future earnings. However, please note that = this is=20 not a recommendation to you or to anyone else to buy the stock.. I=20 have mentioned other stocks in this Forum and gotten feedback = that is so=20 negative that one of the members of the group checked out the stock to = determine if should be shorted rether than bought=20 into....Donald . 
 
Original Message -----
From:=20 Ann
Sent: Wednesday, July 31, = 2002 11:04=20 AM
Subject: [CANSLIM] JCOM

Is that an ascending base? If so, it is way = extended=20 beyond the pivot of 17.55, I think.
Ann
----- Original Message ----- =
From:=20 Donald = Wallker=20
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002 10:59=20 AM
Subject: Re: [CANSLIM] DCOM = - - B/O=20 rules

Ann -- If you would like to look = at another=20 stock to check out, try JCOM.  Its overall rating is 98 A = plus, its=20 1st in all rankings of 35 stocks in its group., its ratings are = 81,99,A=20 plus, C and A minus.  I wonder if it might be considered a = good buy=20 today, since "M" is driving it down after a couple  of great = days=20 from the breakout. - Donald
----- Original Message ----- =
From:=20 Ann=20
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July 31, = 2002 8:50=20 AM
Subject: Re: [CANSLIM] = DCOM - B/O=20 rules

I have written down (though I don't know = where I got=20 it) that WON says that in this M, we can accept handles which go = as low=20 as 20-30%--also, that we shouldn't chase a stock more than 2-3% = above=20 pivot.
 
Ann
----- Original Message ----- =
From:=20 Mike Gibbons =
To: canslim@lists.xmission.com= =20
Sent: Wednesday, July = 31, 2002=20 12:37 AM
Subject: RE: [CANSLIM] = DCOM - B/O=20 rules

I see it more as a cup-with-handle (but when the only = tool you=20 have is a hammer, everything looks like a nail!) because the = two dips=20 were not of equal depth, but I'm not sure what the tolerance = limits=20 are.
 
However, as a CwH it formed a pivot at $25.90 on = 7/10. It then=20 went on to dip to a low of $20.20 in the handle, which was a = 22% drop.=20 WON says that a stock should only correct by at most 15% in = the handle=20 (although there are inconsistent statements on this) so it = didn't=20 qualify as a CwH either (but then virtually nothing has in the = last=20 couple of weeks). Nevertheless, todays breakout was very = strong and=20 could be buyable up to $27.12 (5% above = pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 Katherine Malm
Sent: Tuesday, July 30, 2002 = 2:46=20 PM
To: = canslim@lists.xmission.com
Subject: Re:=20 [CANSLIM] DCOM - B/O rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to = somebody=20 else, but in the meantime, here's something to get you=20 started:
 
Question
  Can a double-bottom base have a = handle, or=20 is it just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the=20 pivot (buy) point typically occurs when the stock = clears the=20 peak in the middle of the W-shaped = pattern.=20 Sometimes, double bottoms will form handles before = they reach=20 this point. In those situations, the pivot point is = when the=20 stock clears the highest price point in the handle = area. The=20 handle should drift downward slightly and usually form = over a=20 period of one to seven weeks.

Course 1 in the = IBD=20 Learning Center on our Web site has a lesson on chart = reading.=20 To get there directly, go to this link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive = entitled=20 =93What Can Technical Indicators Tell Me?=94 to view = past articles=20 on this topic - http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this = link - = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message = - -----
From:=20 vchang@win-invest.com=20
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July = 30, 2002=20 7:18 PM
Subject: [CANSLIM] = DCOM - B/O=20 rules

MessageOn Wedsday's edition (today) IBD = listed DCOM=20 as b/o from a double
bottom.  On Tuesday IBD = weblink said=20 " ... Dime hit 25.94 Monday, just
missing a = breakout..."=20 .

As a newbie trying to learn more about charts and = breakouts, this seems like
a great example to check my=20 understanding.

If I am getting it right, the reason = why=20 DCOM is deemed to have b/o is
because of the following = two=20 easons:

a) It closed at 26.90 having achieved an = high of=20 27.0, and that is above the
previous high of 26.80 back = in May=20 17, 2002.

b) The new high was achieved at a volume=20 1,056,800 which is 378% up from the
day before and four = times=20 the average daily volume of 221,100

What is the = exact rule=20 for a breakout mathematically? (Lets say that I were
to = program=20 it in say Metastock?)

Base on this case I can see = two rules=20 at least (in pseudo-code):

IF today's high is = greater than=20 the previous high (is this the all time high
or just = the=20 rolling 52 week high?)
AND
IF today's volume is = greater than=20 N times the normal volume (is this some
sort of moving = average=20 of the daily volume, or just yeaterday's volume)
THEN = yippe it=20 is a B/O

Is  there any "fuzziness" to the = above=20 rules?

BTW, the fundamentals on DCOM also look = great,=20 ignoring M for a moment, is
this a valid CANSLIM = candidate=20 stock?

Rgds

Victor=20 = Chang


- ------=_NextPart_000_0171_01C2388D.3BE36E20-- - - - -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 #2690 ****************************** 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.