From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2790 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 Tuesday, August 13 2002 Volume 02 : Number 2790 In this issue: [CANSLIM] what the fed said Re: [CANSLIM] cup-without-handle; "tightness" questions -Fw: [CANSLIM] cup-without-handle; "tightness" questions Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) [CANSLIM] PETM - base counting Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) ---------------------------------------------------------------------- Date: Tue, 13 Aug 2002 12:48:45 -0600 From: "Patrick Wahl" Subject: [CANSLIM] what the fed said This was the excerpt Briefing had from the Fed announcement - "The softening in the growth of aggregate demand that emerged this spring has been prolonged in large measure by weakness in financial markets and heightened uncertainty related to problems in corporate reporting and governance. The current accommodative stance of monetary policy, coupled with still-robust underlying growth in productivity, should be sufficient to foster an improving business climate over time. Nonetheless, the Committee recognizes that, for the foreseeable future, against the background of its long run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness.".... - - - -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: Tue, 13 Aug 2002 13:52:14 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions Hi jans, That's my understanding as well. Can't recall if WON uses the term "churning" at the lows or not, but either way, I've read quite a few articles that indicate that may very well be a sign that the stock is refusing to go any lower. It's the clinical opposite of churning at the highs, were continued activity indicates that there are plenty of sellers to match any eager new buyers. Another good sign of bottoming is a "tail up", where you have a large range day around the bottom on high volume, with price closing near the top of the range. There are plenty of those examples at the September and July lows. (And by the way, the same "tail down" will often occur at a top, often times in conjunction with a climax top.) I think in general, that if you were to get in the habit of taking every chart and turning it upside down, you'd see the patterns to the upside and the downside are identical. Katherine - ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 9:50 AM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions | Katherine: | | Couldn't "churning" also identify a stock which has been weak (ie. in a downtrend), but then does not make any more headway down-and does this on heavy volume. Wouldn't this indicate the end of the downtrend (or at least-the beginning of a consolidation, perhaps leading to the stock garnering strength?). | | Moreover, as distribution (as you pointed out) is likely at the top (as indicated by the hi volume and stalling); wouldn't accumulation be likely at the churning point in the downtrend (ie. since the stock is not falling anymore and it is not doing it on hi volume-wouln't this signify that someone is buying up all the stock that someone else is selling) | | I bring up this question because I'm not sure of the answer. I thought WON has said (or perhaps it was in an IBD Investors Corner article) that "churning" can take place on the upside (to indicate future weakness) or on the downside (to indicate future strength). | | In any event, what is your experience or observation or comments and conclusions on my churning conundrum. | | | jans | | | In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time, kmalm@earthlink.net writes: | | > Long story short, churning/stalling is in reference to action *after* a | > stock or index has been rising, nears its highs, then starts acting odd. | > That is, large volume is no longer accompanied by significant upward price | > movement. In that sense, it is subtle distribution and is a | > sign that the | > stock may be topping and/or beginning a consolidating period | | | | - | -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: Tue, 13 Aug 2002 14:06:31 -0500 From: "Katherine Malm" Subject: -Fw: [CANSLIM] cup-without-handle; "tightness" questions Hi jans, Just read through my response again and realized I'd chosen my words badly. In the last paragraph, I was referring the "collective you" and not "you" personally. Sorry about that! Katherine - ----- Original Message ----- From: "Katherine Malm" To: Sent: Tuesday, August 13, 2002 1:52 PM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions | Hi jans, | | That's my understanding as well. Can't recall if WON uses the term | "churning" at the lows or not, but either way, I've read quite a few | articles that indicate that may very well be a sign that the stock is | refusing to go any lower. It's the clinical opposite of churning at the | highs, were continued activity indicates that there are plenty of sellers to | match any eager new buyers. Another good sign of bottoming is a "tail up", | where you have a large range day around the bottom on high volume, with | price closing near the top of the range. There are plenty of those examples | at the September and July lows. (And by the way, the same "tail down" will | often occur at a top, often times in conjunction with a climax top.) | | I think in general, that if you were to get in the habit of taking every | chart and turning it upside down, you'd see the patterns to the upside and | the downside are identical. | | Katherine | | ----- Original Message ----- | From: | To: | Sent: Tuesday, August 13, 2002 9:50 AM | Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions | | | | Katherine: | | | | Couldn't "churning" also identify a stock which has been weak (ie. in | a downtrend), but then does not make any more headway down-and does this on | heavy volume. Wouldn't this indicate the end of the downtrend (or at | least-the beginning of a consolidation, perhaps leading to the stock | garnering strength?). | | | | Moreover, as distribution (as you pointed out) is likely at the top | (as indicated by the hi volume and stalling); wouldn't accumulation be | likely at the churning point in the downtrend (ie. since the stock is not | falling anymore and it is not doing it on hi volume-wouln't this signify | that someone is buying up all the stock that someone else is selling) | | | | I bring up this question because I'm not sure of the answer. I | thought WON has said (or perhaps it was in an IBD Investors Corner article) | that "churning" can take place on the upside (to indicate future weakness) | or on the downside (to indicate future strength). | | | | In any event, what is your experience or observation or comments and | conclusions on my churning conundrum. | | | | | | jans | | | | | | In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time, | kmalm@earthlink.net writes: | | | | > Long story short, churning/stalling is in reference to action *after* a | | > stock or index has been rising, nears its highs, then starts acting odd. | | > That is, large volume is no longer accompanied by significant upward | price | | > movement. In that sense, it is subtle distribution and is a | | > sign that the | | > stock may be topping and/or beginning a consolidating period | | | | | | | | - | | -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: Tue, 13 Aug 2002 13:18:04 -0700 From: Harvey Brion Subject: Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) A caution here, it's good to keep in mind that trailing PE ratios at least are "real," while projected PE ratios are only as good as the earnings forecasts and can be way off, especially beyond the current quarter and FY. This risk is reduced somewhat for older/larger companies that have a history of making or exceeding the quarterly earnings forecasts, so called "positive surprises." That said, I consider both trailing and projected PEs in my stock selection. > > And that's why looking at trailing PE ratios is a waste of time, they are > merely history, no one is likely to react to them. On the other hand, > forecasts / projected PE ratios can create a sense of expectation, hence > drive the price to where the stock trades at a premium based on that > expectation. > - - - -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: Tue, 13 Aug 2002 15:23:54 -0500 From: "Kelly Short" Subject: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure A question for the group- WON says to look for companies that have new = management. However, many group members see the departure of a top exec = as a red flag (i.e. CFO). But, wouldn't the addition of a new management = member almost always follow the departure of a management member? Where = do you draw the line? - - - -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: Tue, 13 Aug 2002 15:53:58 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Kelly, Your comment makes perfect sense....can't bring in the new unless you oust the old. However, once a CFO or CEO is let go, either for financial shenanigans or poor strategy execution, it takes some time for the new CEO/CFO to clean house, design and implement a strategy, and then execute and get results. Generally you'll see this in the charts. I seem to remember ATN going through this process in the last couple of years. Pull up a longer term chart and look at the rise and fall and then rise. Take a look at the significant developments and then note the timing of the new CEO and the chart. Generally, you'll see a lag. (ATN has had a good couple of years, but is working on a consolidation right now.) Katherine - ----- Original Message ----- From: "Kelly Short" To: Sent: Tuesday, August 13, 2002 3:23 PM Subject: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure A question for the group- WON says to look for companies that have new management. However, many group members see the departure of a top exec as a red flag (i.e. CFO). But, wouldn't the addition of a new management member almost always follow the departure of a management member? Where do you draw the line? - - - -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: Tue, 13 Aug 2002 17:02:07 -0400 From: "Bill King" Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Hi Katherine, Thanks for the annotated chart. You indicated the pivot point was 43.65 + .1 with a potential handle. Although it's accidemic after the break out on 8/12, why wouldn't the pivot point have been 44.55 back on 5/1? Bill K. - ----- Original Message ----- From: "Katherine Malm" To: Sent: Tuesday, August 13, 2002 10:32 AM Subject: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Hi Mike, WTW didn't have the smoothest base, but it was a 12 week base nonetheless. That's not unusual given the gyrations of the market as it's been groping for this latest bottom. So that you can see my personal take on it, I've annotated the chart at: http://WallStreet-LLC.com/canslim/WTW081302.jpg Gene noted that WTW is also featured in IBD's weblink today. They have also annotated a chart, so you can see their interpretation at: http://www.investors.com/weblink/ Katherine - ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 8:50 AM Subject: Re: [CANSLIM] Which One Is Better - Updated Katherine, Can you expound on the statement that WTW broke out? In looking at the chart, I can sorta see a v shaped cwh, but in the handle, the volume did NOT dry up.....what would you say the pivot point was? 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] Which One Is Better - Updated ission.com 08/12/2002 08:02 PM Please respond to canslim You know, I have a simple solution for this kind of dilemma....don't use the numbers. I know it's tempting to use a number like this, as it seems to "tell you everything" about the stock. But I think once you summarize summary numbers, you're asking for trouble. I rank the composite score as "mildly useful." Here's an example. I'll select a couple of stocks that have come up for discussion here in the last few months: WTW and TOL. Scores? WTW = 96 TOL = 95 Yet, look at the charts. WTW broke out today, TOL is rolling over and playing dead. Doesn't sound like a score of 95/96 "tells" me everything I need to know about the stocks. Katherine ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 7:41 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Arghhh! Same definition Same data base Same company different numbers! ----- Original Message ----- From: Bill Triffet To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 6:58 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Either way, it appears that the IBD data paints a prettier picture of the stocks. -Bill ----- Original Message ----- From: "Gene Ricci" To: Sent: Monday, August 12, 2002 4:50 PM Subject: Re: [CANSLIM] Which One Is Better - Updated I just had today's update figures for DGO sent to me. The 3 columns are 8/9 DGO data 8/12 IBD readings 30 minutes ago 8/12 DGO just received today's download Hi Katherine, I hadn't checked today and after reading your note, I 'thought' I was in error. However, I just went and checked several stocks: 8/9 8/12 8/12 DGO IBD DGO AAON 85 86 83 AIR 38 55 32 ABCB 89 90 90 ABM 77 85 75 ABN 58 67 58 ACE 69 86 71 ACMR 92 95 92 AES 24 30 25 AFCE 72 79 74 AFL 92 95 91 The first ten (10) I checked showed different numbers. My question still stands, which one is better? Gene ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 5:47 PM Subject: Re: [CANSLIM] Which One Is Better Hi Gene, There seems to be conflicting information on this...See DGO's reply to my recent inquiry (7/31) about the very same thing: Hi Katherine, Thank you for your recent email to Daily Graphs Online. I apologize, but the recent additions to our services have not yet been reflected in our Image Maps resource. We plan on making the update soon. TO address your question, I would like to confirm that the Composite Rating you see on our service is the same SmartSelect® Composite Rating that is provided by the Investor's Business Daily and investors.com. Please write back if you have any questions or need assistance. Best regards, Dan Daily Graphs Online www.dailygraphs.com ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 4:06 PM Subject: [CANSLIM] Which One Is Better Let's see, IBD provides an Overall Rating and now DGO provides a Composite Rating. Has anyone determined which one is better? Gene The new SmartSelect® Composite Rating in Investor's Business Daily and the Stock Checkup Overall Rating found on investors.com are based on different formulas. The SmartSelect® Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula. Results are then compared to all other companies, and each company is assigned a rating from 1-99 with 99 being the best. This rating is designed to help you get a quick feel for how a company's SmartSelect® Ratings compare to all other stocks in our database. This is intended to be an additional tool to help you find the stocks with the highest SmartSelect® Ratings, quickly and easily. The Overall Rating in the Stock Checkup is determined by a proprietary formula incorporating all five of the Stock Checkup ratings. These are the Technical Rating, Fundamental Rating, Attractiveness Rating, Group's Technical Rating and Group's Fundamental Rating. The Stock Checkup uses over 30 different variables including all the SmartSelect® Ratings to calculate the Overall Rating. When using the Stock Checkup, focus not only on the Overall Rating but all 6 of the Checkup Ratings. Also study how the stock compares to its group within the individual Checkup Ratings. - -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: Tue, 13 Aug 2002 16:14:39 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Hi Bill, Actually, your error is one that I made frequently when I first started reading charts. When looking at formations like this, you don't want to use the points on the way down the left side of the consolidation as your pivots, instead, you want to watch the *right* side of the consolidation form, then pay attention to the last spot where up action turns to down action on fading volume. That's the sign the "shakeout" is occurring. Normally this happens just *below* the high action on the left side of the consolidation, and as long as it's in the upper half of the base, it's valid. In the case of WTW, that pause and fade to form the handle began on 7/31 and therefore defines the pivot point. You might take a look at the notes I uploaded on base formations in this morning's CECO post. It shows where the pivots are in each example base. http://WallStreet-LLC.com/canslim/TypesOfBases.JPG Katherine - ----- Original Message ----- From: "Bill King" To: Sent: Tuesday, August 13, 2002 4:02 PM Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) | Hi Katherine, | Thanks for the annotated chart. You indicated the pivot point was 43.65 + .1 | with a potential handle. Although it's accidemic after the break out on | 8/12, why wouldn't the pivot point have been 44.55 back on 5/1? | | Bill K. | ----- Original Message ----- | From: "Katherine Malm" | To: | Sent: Tuesday, August 13, 2002 10:32 AM | Subject: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) | | | Hi Mike, | | WTW didn't have the smoothest base, but it was a 12 week base nonetheless. | That's not unusual given the gyrations of the market as it's been groping | for this latest bottom. So that you can see my personal take on it, I've | annotated the chart at: | | http://WallStreet-LLC.com/canslim/WTW081302.jpg | | | Gene noted that WTW is also featured in IBD's weblink today. They have also | annotated a chart, so you can see their interpretation at: | | http://www.investors.com/weblink/ | | Katherine | | ----- Original Message ----- | From: | To: | Sent: Tuesday, August 13, 2002 8:50 AM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | | | Katherine, | | Can you expound on the statement that WTW broke out? In looking at the | chart, I can sorta see a v shaped cwh, but in the handle, the volume did | NOT dry up.....what would you say the pivot point was? | | 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] | Which One Is Better - Updated | ission.com | | | 08/12/2002 08:02 PM | Please respond to | canslim | | | | | | | You know, I have a simple solution for this kind of dilemma....don't use | the numbers. | | I know it's tempting to use a number like this, as it seems to "tell you | everything" about the stock. But I think once you summarize summary | numbers, you're asking for trouble. I rank the composite score as "mildly | useful." | | Here's an example. I'll select a couple of stocks that have come up for | discussion here in the last few months: WTW and TOL. | | Scores? | WTW = 96 | TOL = 95 | | Yet, look at the charts. WTW broke out today, TOL is rolling over and | playing dead. Doesn't sound like a score of 95/96 "tells" me everything I | need to know about the stocks. | | Katherine | ----- Original Message ----- | From: Gene Ricci | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 7:41 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | Arghhh! | Same definition | Same data base | Same company | different numbers! | ----- Original Message ----- | From: Bill Triffet | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 6:58 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | Either way, it appears that the IBD data paints a prettier picture of the | stocks. | | -Bill | | ----- Original Message ----- | From: "Gene Ricci" | To: | Sent: Monday, August 12, 2002 4:50 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | | I just had today's update figures for DGO sent to me. | The 3 columns are 8/9 DGO data | 8/12 IBD readings 30 minutes ago | 8/12 DGO just received today's download | | | Hi Katherine, I hadn't checked today and after reading your note, I | 'thought' I was in error. | | However, I just went and checked several stocks: | 8/9 8/12 8/12 | DGO IBD DGO | AAON 85 86 83 | AIR 38 55 32 | ABCB 89 90 90 | ABM 77 85 75 | ABN 58 67 58 | ACE 69 86 71 | ACMR 92 95 92 | AES 24 30 25 | AFCE 72 79 74 | AFL 92 95 91 | | | The first ten (10) I checked showed different numbers. | | My question still stands, which one is better? | | Gene | | | | ----- Original Message ----- | From: Katherine Malm | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 5:47 PM | Subject: Re: [CANSLIM] Which One Is Better | | | Hi Gene, | | There seems to be conflicting information on this...See DGO's reply to my | recent inquiry (7/31) about the very same thing: | | | | | Hi Katherine, | | Thank you for your recent email to Daily Graphs Online. | | I apologize, but the recent additions to our services have not yet been | reflected in our Image Maps resource. We plan on making the update soon. | TO address your question, I would like to confirm that the Composite | Rating | you see on our service is the same SmartSelect® Composite Rating that is | provided by the Investor's Business Daily and investors.com. | | Please write back if you have any questions or need assistance. | | Best regards, | Dan | Daily Graphs Online | www.dailygraphs.com | | ----- Original Message ----- | From: Gene Ricci | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 4:06 PM | Subject: [CANSLIM] Which One Is Better | | | Let's see, IBD provides an Overall Rating and now DGO provides a Composite | Rating. Has anyone determined which one is better? | | Gene | | The new SmartSelect® Composite Rating in Investor's Business Daily and | the Stock Checkup Overall Rating found on investors.com are based on | different formulas. | | The SmartSelect® Composite Rating combines all 5 SmartSelect Ratings | into one easy-to-use rating. More weight is placed on EPS and RS | Rating, and the stock's percent off its 52-week high is also included in | the formula. Results are then compared to all other companies, and each | company is assigned a rating from 1-99 with 99 being the best. This | rating is designed to help you get a quick feel for how a company's | SmartSelect® Ratings compare to all other stocks in our database. This | is intended to be an additional tool to help you find the stocks with | the highest SmartSelect® Ratings, quickly and easily. | | The Overall Rating in the Stock Checkup is determined by a proprietary | formula incorporating all five of the Stock Checkup ratings. These are | the Technical Rating, Fundamental Rating, Attractiveness Rating, Group's | Technical Rating and Group's Fundamental Rating. The Stock Checkup uses | over 30 different variables including all the SmartSelect® Ratings to | calculate the Overall Rating. When using the Stock Checkup, focus not | only on the Overall Rating but all 6 of the Checkup Ratings. Also study | how the stock compares to its group within the individual Checkup | Ratings. | | | | - | -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. - - - -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: Tue, 13 Aug 2002 14:23:31 -0700 From: "Scott Gettis" Subject: [CANSLIM] PETM - base counting just since we're talking about base counting, I wanted to discuss a current example. This is my take: Base 1 - Double BOTTOM (Dec 99 - March 01) - Boy is that symmetrical! Base 2 - V-shaped CUP (sep 01 - nov 01)- who ever said they could not work? Base 3 - Current Consolidation Thanks, Scott - - - -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: Tue, 13 Aug 2002 18:06:08 -0400 From: "Bill King" Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Thanks Katherine, the pictures and your explaination helped (don't they always!!). Assume similar thought process would apply to a flat base. Bill K. - ----- Original Message ----- From: "Katherine Malm" To: Sent: Tuesday, August 13, 2002 5:14 PM Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Hi Bill, Actually, your error is one that I made frequently when I first started reading charts. When looking at formations like this, you don't want to use the points on the way down the left side of the consolidation as your pivots, instead, you want to watch the *right* side of the consolidation form, then pay attention to the last spot where up action turns to down action on fading volume. That's the sign the "shakeout" is occurring. Normally this happens just *below* the high action on the left side of the consolidation, and as long as it's in the upper half of the base, it's valid. In the case of WTW, that pause and fade to form the handle began on 7/31 and therefore defines the pivot point. You might take a look at the notes I uploaded on base formations in this morning's CECO post. It shows where the pivots are in each example base. http://WallStreet-LLC.com/canslim/TypesOfBases.JPG Katherine - ----- Original Message ----- From: "Bill King" To: Sent: Tuesday, August 13, 2002 4:02 PM Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) | Hi Katherine, | Thanks for the annotated chart. You indicated the pivot point was 43.65 + .1 | with a potential handle. Although it's accidemic after the break out on | 8/12, why wouldn't the pivot point have been 44.55 back on 5/1? | | Bill K. | ----- Original Message ----- | From: "Katherine Malm" | To: | Sent: Tuesday, August 13, 2002 10:32 AM | Subject: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) | | | Hi Mike, | | WTW didn't have the smoothest base, but it was a 12 week base nonetheless. | That's not unusual given the gyrations of the market as it's been groping | for this latest bottom. So that you can see my personal take on it, I've | annotated the chart at: | | http://WallStreet-LLC.com/canslim/WTW081302.jpg | | | Gene noted that WTW is also featured in IBD's weblink today. They have also | annotated a chart, so you can see their interpretation at: | | http://www.investors.com/weblink/ | | Katherine | | ----- Original Message ----- | From: | To: | Sent: Tuesday, August 13, 2002 8:50 AM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | | | Katherine, | | Can you expound on the statement that WTW broke out? In looking at the | chart, I can sorta see a v shaped cwh, but in the handle, the volume did | NOT dry up.....what would you say the pivot point was? | | 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] | Which One Is Better - Updated | ission.com | | | 08/12/2002 08:02 PM | Please respond to | canslim | | | | | | | You know, I have a simple solution for this kind of dilemma....don't use | the numbers. | | I know it's tempting to use a number like this, as it seems to "tell you | everything" about the stock. But I think once you summarize summary | numbers, you're asking for trouble. I rank the composite score as "mildly | useful." | | Here's an example. I'll select a couple of stocks that have come up for | discussion here in the last few months: WTW and TOL. | | Scores? | WTW = 96 | TOL = 95 | | Yet, look at the charts. WTW broke out today, TOL is rolling over and | playing dead. Doesn't sound like a score of 95/96 "tells" me everything I | need to know about the stocks. | | Katherine | ----- Original Message ----- | From: Gene Ricci | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 7:41 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | Arghhh! | Same definition | Same data base | Same company | different numbers! | ----- Original Message ----- | From: Bill Triffet | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 6:58 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | Either way, it appears that the IBD data paints a prettier picture of the | stocks. | | -Bill | | ----- Original Message ----- | From: "Gene Ricci" | To: | Sent: Monday, August 12, 2002 4:50 PM | Subject: Re: [CANSLIM] Which One Is Better - Updated | | | I just had today's update figures for DGO sent to me. | The 3 columns are 8/9 DGO data | 8/12 IBD readings 30 minutes ago | 8/12 DGO just received today's download | | | Hi Katherine, I hadn't checked today and after reading your note, I | 'thought' I was in error. | | However, I just went and checked several stocks: | 8/9 8/12 8/12 | DGO IBD DGO | AAON 85 86 83 | AIR 38 55 32 | ABCB 89 90 90 | ABM 77 85 75 | ABN 58 67 58 | ACE 69 86 71 | ACMR 92 95 92 | AES 24 30 25 | AFCE 72 79 74 | AFL 92 95 91 | | | The first ten (10) I checked showed different numbers. | | My question still stands, which one is better? | | Gene | | | | ----- Original Message ----- | From: Katherine Malm | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 5:47 PM | Subject: Re: [CANSLIM] Which One Is Better | | | Hi Gene, | | There seems to be conflicting information on this...See DGO's reply to my | recent inquiry (7/31) about the very same thing: | | | | | Hi Katherine, | | Thank you for your recent email to Daily Graphs Online. | | I apologize, but the recent additions to our services have not yet been | reflected in our Image Maps resource. We plan on making the update soon. | TO address your question, I would like to confirm that the Composite | Rating | you see on our service is the same SmartSelect® Composite Rating that is | provided by the Investor's Business Daily and investors.com. | | Please write back if you have any questions or need assistance. | | Best regards, | Dan | Daily Graphs Online | www.dailygraphs.com | | ----- Original Message ----- | From: Gene Ricci | To: canslim@lists.xmission.com | Sent: Monday, August 12, 2002 4:06 PM | Subject: [CANSLIM] Which One Is Better | | | Let's see, IBD provides an Overall Rating and now DGO provides a Composite | Rating. Has anyone determined which one is better? | | Gene | | The new SmartSelect® Composite Rating in Investor's Business Daily and | the Stock Checkup Overall Rating found on investors.com are based on | different formulas. | | The SmartSelect® Composite Rating combines all 5 SmartSelect Ratings | into one easy-to-use rating. More weight is placed on EPS and RS | Rating, and the stock's percent off its 52-week high is also included in | the formula. Results are then compared to all other companies, and each | company is assigned a rating from 1-99 with 99 being the best. This | rating is designed to help you get a quick feel for how a company's | SmartSelect® Ratings compare to all other stocks in our database. This | is intended to be an additional tool to help you find the stocks with | the highest SmartSelect® Ratings, quickly and easily. | | The Overall Rating in the Stock Checkup is determined by a proprietary | formula incorporating all five of the Stock Checkup ratings. These are | the Technical Rating, Fundamental Rating, Attractiveness Rating, Group's | Technical Rating and Group's Fundamental Rating. The Stock Checkup uses | over 30 different variables including all the SmartSelect® Ratings to | calculate the Overall Rating. When using the Stock Checkup, focus not | only on the Overall Rating but all 6 of the Checkup Ratings. Also study | how the stock compares to its group within the individual Checkup | Ratings. | | | | - | -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". 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