From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2906 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, September 5 2002 Volume 02 : Number 2906 In this issue: [CANSLIM] Wedging example: CECO Fw: [CANSLIM] Kids, Kids, Kids Re: [CANSLIM] Registered letter (was: Why Professionals go astray) Re: [CANSLIM] Registered letter (was: Why Professionals go astray) Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis ---------------------------------------------------------------------- Date: Wed, 4 Sep 2002 20:34:23 -0500 From: "Kelly Short" Subject: [CANSLIM] Wedging example: CECO Katherine, To continue your point on wedging- would this stock be an example of wedging action? http://www.kellyrshort.com/canslim/CECOwedgeexample.gif Kelly - - - -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, 4 Sep 2002 22:06:02 -0700 From: "NANCY POLCARO" Subject: Fw: [CANSLIM] Kids, Kids, Kids - ------=_NextPart_001_0000_01C2545F.422D8160 Content-Type: text/plain; charset="utf-8" Content-Transfer-Encoding: quoted-printable If anyone has ever been on the MSN boards this kind of talk is about all = you see. I went there a couple of times and never did see one thing abou= t the stock the board was discussing. Just gave up. Sometimes people co= me to us and don't realize we aren't like that here because that is what = they have been exposed to. It made me understand why people monitor board= s. =20 - ----- Original Message ----- From: Edward W. Gjertsen II Sent: Wednesday, September 04, 2002 7:18 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Kids, Kids, Kids =20 Don=E2=80=99t make me pull over the internet to the side of the road and = start smackin=E2=80=99 heads. =20 It is obvious that there is frustration all around. There are those inve= stors out there that look at the world empirically and need the =E2=80=9C= beef=E2=80=9D before making a decision. I thought personal attacks were = not acceptable here. If you want cantankerous postings, I am sure there = are other places to vent on the internet. The great thing about investin= g is that there really is no single right way. Similar to religion, it=E2= =80=99s difficult to say Warren Buffets approach is wrong or to tell Tom = Baldwin (Bond Trader) that his style is wrong. What it all comes down to= is style and comfort. Pick an investment style that is comfortable for = you to follow, make it your own, and then follow it in a disciplined mann= er. If there are those on this post who are lurking and are looking for = the =E2=80=9CHoly Grail=E2=80=9D of investment strategies, you will be di= sappointed. Buffet is not always right, Baldwin is not always right, but= when they are wrong, they don=E2=80=99t risk 7% of their entire portfoli= o on one investment/trade. If you are looking for excitement, go to Vega= s. If you are looking for a way to intelligently share ideas about one p= articular investment methodology, this is the place. =20 Ed Gjertsen II ed@macktracks.com - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmissi= on.com] On Behalf Of Tom Worley Sent: Wednesday, September 04, 2002 8:56 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Why Professionals go astray =20 grow up Wyndy, anyone who knows me, as Norman obviously did, and as I ack= nowledged with my earlier response directed at Hermann's asinine response= , no better than yours, already knows that my long association with WON p= roducts makes me doubtful that you will get an on topic response, if any = response at all. =20 =20 Try reading your emails before parroting Hermann, he's no more on target = than you are. =20 I suggest the same thing to you as to Hermann, lurk and learn some manner= s, or learn how to productively contribute to this group. If neither opti= on is satisfactory, then I suggest you find another group to try and disr= upt. You will find that you "get" far more when you are giving a little, = and when you behave in a civil manner. =20 - ----- Original Message ----- =20 From: Cwyndham@aol.com =20 To: canslim@lists.xmission.com =20 Sent: Wednesday, September 04, 2002 9:48 AM Subject: Re: [CANSLIM] Why Professionals go astray =20 In a message dated 9/3/2002 9:57:39 PM Central Daylight Time, stkguru@bel= lsouth.net writes: Wyndy, I will be interested in the response to your registered letter, as= suming there is one. Maybe your critical attitude will elicit an answer Tom casting doubt on my credibility is juvenile. You have your nerve sayi= ng "assuming there is one." I joined this group to get data not hype or insu= lts. =20 - ------=_NextPart_001_0000_01C2545F.422D8160 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable
If anyone has ever been on the MSN boards thi= s kind of talk is about all you see.  I went there a couple of times= and never did see one thing about the stock the board was discussing.&nb= sp; Just gave up.  Sometimes people come to us and don't realize we = aren't like that here because that is what they have been exposed to.&nbs= p;It made me understand why people monitor boards.
 
----- Original Message -----
From: Edward W. Gje= rtsen II
Sent: Wednesday, Se= ptember 04, 2002 7:18 AM
To:= canslim@lists.xmission.com
Subj= ect: [CANSLIM] Kids, Kids, Kids
 

Don=E2=80=99t make me pull= over the internet to the side of the road and start smackin=E2=80=99 hea= ds.

 = ;

It is o= bvious that there is frustration all around.  There are those invest= ors out there that look at the world empirically and need the =E2=80=9Cbe= ef=E2=80=9D before making a decision.  I thought personal attacks we= re not acceptable here.  If you want cantankerous postings, I am sur= e there are other places to vent on the internet.  The great thing a= bout investing is that there really is no single right way.  Similar= to religion, it=E2=80=99s difficult to say Warren Buffets approach is wr= ong or to tell Tom Baldwin (Bond Trader) that his style is wrong.  W= hat it all comes down to is style and comfort.  Pick an investment s= tyle that is comfortable for you to follow, make it your own, and then fo= llow it in a disciplined manner.  If there are those on this post wh= o are lurking and are looking for the =E2=80=9CHoly Grail=E2=80=9D of inv= estment strategies, you will be disappointed.  Buffet is not always = right, Baldwin is not always right, but when = they are wrong, they don=E2=80=99t risk 7% of their entire portfolio on o= ne investment/trade.  If you are looking for excitement, go to Vegas= .  If you are looking for a way to intelligently share ideas about o= ne particular investment methodology, this is the place.

 

<= DIV>

Ed Gjertsen II

ed= @macktracks.com

-----Original Message-----
From: owner-canslim= @lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley
Sent: Wednesday, Se= ptember 04, 2002 8:56 AM
To: canslim@lists.xmission.comSubject: Re: [CANSL= IM] Why Professionals go astray

 

grow up Wyndy, anyone who knows = me, as Norman obviously did, and as I acknowledged with my earlier respon= se directed at Hermann's asinine response, no better than yours, already = knows that my long association with WON products makes me doubtful that y= ou will get an on topic response, if any response at all. <= /P>

 

Try reading your emails before parroting Hermann, he's no mo= re on target than you are.

 

I suggest the same = thing to you as to Hermann, lurk and learn some manners, or learn how to = productively contribute to this group. If neither option is satisfactory,= then I suggest you find another group to try and disrupt. You will find = that you "get" far more when you are giving a little, and when you behave= in a civil manner.

 

----- Original Message ----= - -

<= DIV>

To: canslim@lists.xmission.com=

Sent: = Wednesday, September 04, 2002 <= /SPAN>9:48 AM

Subject:<= /SPAN> Re: [CANSLIM] Why Professionals go astray=

 

In a message dated 9/3/2002 9:5= 7:39 PM Central Daylight Time, s= tkguru@bellsouth.net writes:



Wyndy, I will be inter= ested in the response to your registered letter, assuming there is one. M= aybe your critical attitude will elicit an answer

=

Tom casting d= oubt on my credibility is juvenile. You have your nerve saying
"assumi= ng there is one." I joined this group to get data not hype or insults.

- ------=_NextPart_001_0000_01C2545F.422D8160-- - - - -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, 4 Sep 2002 23:55:30 -0700 From: "NANCY POLCARO" Subject: Re: [CANSLIM] Registered letter (was: Why Professionals go astray) - ------=_NextPart_001_0001_01C2546E.8CB4F380 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable HAS ANYONE HEARD FROM DUKE 13139 LATELY =20 =20 - ----- Original Message ----- From: Tom Worley Sent: Wednesday, September 04, 2002 5:39 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Registered letter (was: Why Professionals go astra= y) =20 Hermann, I have no idea what your problem is, wouldn't have even seen you= r stupid post had Norman replied (I do read his posts, yours go straight to the garbage can). Norman is correct, I seriously doubt Wyndy will get an answer, or if she gets one that it will be responsive to her question. Should she get one, I would be genuinely interested in the response. I ha= d no reason to doubt that she sent the letter as she said. I also have no i= dea what you are talking about regarding "phoniness of the story of the Certified Letter from IBD", I know I personally have been legally served = by DGO, and am aware of several other members reporting the same thing eithe= r from DGO or IBD. I have no reason to doubt their word, unlike you, they h= ave credibility with me. While most members here appear to use their real name, unlike typical internet behavior, some will still use an alias. I don't know who your gr= ipe about this is directed towards. If it was intended as another barb at me, then I suggest you fly to Miami and examine my driver's license, voter ID= , birth certificate or whatever you may believe. You will find the same nam= e on every one, and it's Tom Worley and variations. I do wish you would either just lurk, and learn some manners, or else sta= rt contributing to the group in some productive way. Maybe then those of us that have used mail rules to discard your posts might eventually see you differently. - ----- Original Message ----- From: "Norman" To: Sent: Wednesday, September 04, 2002 7:41 AM Subject: Re: [CANSLIM] Registered letter (was: Why Professionals go astra= y) Hermann, I think Tom was skeptical that IBD will answer the letter rather than Wyn= dy having sent one. Comes from experience me thinks. Norm - ----- Original Message ----- From: "Hermann Ertl" To: Sent: Wednesday, September 04, 2002 3:40 AM Subject: [CANSLIM] Registered letter (was: Why Professionals go astray) > > From: "Tom Worley" > > Date: Tue, 3 Sep 2002 22:56:15 -0400 > > > > Wyndy, I will be interested in the response to your > > registered letter, assuming there is one. > > > > Doubting Tom, how do you know that there is no such a letter? > > You should show more objectivity. Why didn't you point to the > phoniness of the story of the Certified Letter from IBD? That was > incredulous. Where was your critical mind? > > > > snip > > Perhaps you could introduce yourself and tell us a little of > > > How about the aliases of members who suffer from MPD? > > > > > > - > -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. - ------=_NextPart_001_0001_01C2546E.8CB4F380 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
HAS ANYONE HEA= RD FROM DUKE 13139 LATELY 
 
-= - ---- Original Message -----
From: Tom Worley
Sent: Wednesday, September 04, 2002 5:39 AM
=
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Registe= red letter (was: Why Professionals go astray)
 
Herm= ann, I have no idea what your problem is, wouldn't have even seen yourstupid post had Norman replied (I do read his posts, yours go straight t= o
the garbage can). Norman is correct, I seriously doubt Wyndy will ge= t an
answer, or if she gets one that it will be responsive to her ques= tion.
Should she get one, I would be genuinely interested in the respo= nse. I had
no reason to doubt that she sent the letter as she said. I = also have no idea
what you are talking about regarding "phoniness of t= he story of the
Certified Letter from IBD", I know I personally have b= een legally served by
DGO, and am aware of several other members repor= ting the same thing either
from DGO or IBD. I have no reason to doubt = their word, unlike you, they have
credibility with me.

While mo= st members here appear to use their real name, unlike typical
internet= behavior, some will still use an alias. I don't know who your gripe
a= bout this is directed towards. If it was intended as another barb at me,<= BR>then I suggest you fly to Miami and examine my driver's license, voter= ID,
birth certificate or whatever you may believe. You will find the = same name
on every one, and it's Tom Worley and variations.

I d= o wish you would either just lurk, and learn some manners, or else start<= BR>contributing to the group in some productive way. Maybe then those of = us
that have used mail rules to discard your posts might eventually se= e you
differently.

----- Original Message -----
From: "Norma= n" <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
= Sent: Wednesday, September 04, 2002 7:41 AM
Subject: Re: [CANSLIM] Reg= istered letter (was: Why Professionals go astray)


Hermann,
=
I think Tom was skeptical that IBD will answer the letter rather than= Wyndy
having sent one.  Comes from experience me thinks.

= Norm

----- Original Message -----
From: "Hermann Ertl" <hert= l@attglobal.net>
To: <canslim@lists.xmission.com>
Sent: We= dnesday, September 04, 2002 3:40 AM
Subject: [CANSLIM] Registered lett= er (was: Why Professionals go astray)


> > From: "Tom Wor= ley" <stkguru@bellsouth.net>
> > Date: Tue, 3 Sep 2002 22:= 56:15 -0400
> >
> >     Wyndy, I wi= ll be interested in the response to your
> > registered letter, = assuming there is one.
>
>
>
> Doubting Tom, how = do you know that there is no such a letter?
>
> You should sh= ow more objectivity. Why didn't you point to the
> phoniness of the= story of the Certified Letter from IBD? That was
> incredulous. Wh= ere was your critical mind?
>
>
>
> snip
> = > Perhaps  you could introduce yourself and tell us a little of>
>
> How about the aliases of members who suffer from M= PD?
>
>
>
>
>
> -
> -To subscri= be/unsubscribe, email "majordomo@xmission.com"
> -In the email body= , write "subscribe canslim" or
> -"unsubscribe canslim".  Do n= ot use quotes in your email.
>
>



-
-To subs= cribe/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 ca= nslim" or
-"unsubscribe canslim".  Do not use quotes in your emai= l.
- ------=_NextPart_001_0001_01C2546E.8CB4F380-- - - - -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, 4 Sep 2002 23:57:41 -0700 From: "NANCY POLCARO" Subject: Re: [CANSLIM] Registered letter (was: Why Professionals go astray) - ------=_NextPart_001_0002_01C2546E.DB1DE360 Content-Type: text/plain; charset="iso-8859-1" I laughed so hard I fell out of my chair!!!!! - ----- Original Message ----- From: Mike Gibbons Sent: Wednesday, September 04, 2002 2:29 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Registered letter (was: Why Professionals go astray) Hermann, it seems that because of our respective time zones, I am the first to read you emails. I think you are seeking help in the wrong discussion group. Please take the test at this page http://www.4degreez.com/misc/personality_disorder_test.mv and then seek help from those qualified to help you. I hope you get help soon. 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 Hermann Ertl Sent: Tuesday, September 03, 2002 10:40 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Registered letter (was: Why Professionals go astray) > From: "Tom Worley" > Date: Tue, 3 Sep 2002 22:56:15 -0400 > > Wyndy, I will be interested in the response to your > registered letter, assuming there is one. Doubting Tom, how do you know that there is no such a letter? You should show more objectivity. Why didn't you point to the phoniness of the story of the Certified Letter from IBD? That was incredulous. Where was your critical mind? snip > Perhaps you could introduce yourself and tell us a little of How about the aliases of members who suffer from MPD? - - - -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. - ------=_NextPart_001_0002_01C2546E.DB1DE360 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I laughed so h= ard I fell out of my chair!!!!! 
 
----- Original Message -----
From: Mike Gibbons
Sent: Wednesday, September 04, 2002 2:29 = AM
To: canslim@lists.xmissio= n.com
Subject: RE: [CANSLIM]= Registered letter (was: Why Professionals go astray)
 Hermann, it seems that because of our respective time zones, I am the= first
to read you emails.

I think you are seeking help in the = wrong discussion group. Please take the
test at this page http://www.4= degreez.com/misc/personality_disorder_test.mv
and then seek help from = those qualified to help you.

I hope you get help soon.

Mike= Gibbons
Proactive Technologies, LLC
http://www.proactech.com

-----Original Message-----
From: owner-canslim@lists.xmission.co= m
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Hermann ErtlSent: Tuesday, September 03, 2002 10:40 PM
To: canslim@lists.xmissio= n.com
Subject: [CANSLIM] Registered letter (was: Why Professionals go = astray)


> From: "Tom Worley" <stkguru@bellsouth.net><= BR>> Date: Tue, 3 Sep 2002 22:56:15 -0400
>
>  &= nbsp;  Wyndy, I will be interested in the response to your
> r= egistered letter, assuming there is one.



Doubting Tom, how= do you know that there is no such a letter?

You should show more = objectivity. Why didn't you point to the
phoniness of the story of the= Certified Letter from IBD? That was
incredulous. Where was your criti= cal mind?



snip
> Perhaps  you could introduce y= ourself and tell us a little of


How about the aliases of membe= rs who suffer from MPD?





-
-To subscribe/unsubsc= ribe, email "majordomo@xmission.com"
-In the email body, write "subscr= ibe canslim" or
-"unsubscribe canslim".  Do not use quotes in you= r email.


-
-To subscribe/unsubscribe, email "majordomo@xmis= sion.com"
-In the email body, write "subscribe canslim" or
-"unsubs= cribe canslim".  Do not use quotes in your email.
- ------=_NextPart_001_0002_01C2546E.DB1DE360-- - - - -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, 5 Sep 2002 05:16:08 -0700 From: "John Calkins" Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis Hi James, Thanks for your incredible responce to my Failed Breakout and Stops! I've tried to look at the intraday charts before but didn't take them seriously enough I guess. I have noted before that big moves on high volume during the day seemed to be connected to some news or something, but was afraid it was just market makers or day trading. I can't get more than 10 days ago at BigCharts for a history on CSTR for the time frame but I think I understand that when you see a CWH pattern within a 5 day then watch for a handle to form or breakdown or up in price with high volume. Do you look at BigCharts for this intraday charting and what is you setting preference, such as 5 or 10 day/ 1 hour or 15 min.? I had been getting my volume/price information each day from my telephone service with TD Waterhouse but it looks like your intra-day charts work much better. - ---- Original Message ----- From: "James Bond" To: Sent: Tuesday, September 03, 2002 6:44 PM Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis > CSTR presents an interesting example of the importance > of intraday charts. There is no clue of impending > trouble on the daily chart until the stock broke down. > The intraday chart, however, telegraphed the bad news > well in advance. > > Like many other people, I too cannot follow the market > during the day and have to check charts during the > evening. When I have a position open, I check the > chart every night with no exception. > > On Thursday, Aug 22, when this rally was still > advancing, I was surprised that evening to see many > bearish charts among the leading stocks. For example, > FCN had a deterioting relative strength, CCR made a > new high but its relative strength lagged, DORL gapped > to a new high but saw no progress in daily price > (distribution), and PIXR had formed an evening star > candlestick pattern. If one or two stocks were acting > poorly it probably wouldn't have bothered me so much. > When most of the leading stocks were showing signs of > weakness the market was in trouble. At that time I was > long CCR, CSTR, DORL, NUTR, and PIXR. My first > decision was to sell CCR, DORL and PIXR at the open > next morning, and but to keep CSTR and NUTR. > > I changed my mind when I looked at the intraday chart > for CSTR. On the daily chart, CSTR had formed an > impeccible CwH base, with pp at 31.22. The breakout > was on very good volume, and reached a high of 34.2. > Because of a little overhead resistance (as mentioned > by others), it was expected to form a second handle > before breaking out to new highs. This was also noted > by the issue of IBD the day after its breakout. It > consolidated between 32 and 34 the next 5 days, with > nothing extraordinary shown on the daily chart. I was > several times tempted to add shares when it pulled to > low 32's but thougt better of it. My plan was to add > to my position when it broke out of the second handle. > I wasn't even thinking about selling it before I > looked at the intraday chart. > > I was alarmed by the intraday chart. On the intraday > chart, the consolidation between 32 and 34 showed up > as a five day CwH formation, with the appropriate > volume actions (large volume on left and right sides, > dryups on bottom and in handle). Handle high was 33.76 > which was the intraday high on Thursday. Everything > was great except for the last hour or so of Thursday. > Some heavy selling came in and broke the handle > formation (little did I know that the Off Wall Street > report was issued to its clients on that Thursday). > WON told us that heavy selling in handle was a sign of > trouble, and a good short can be entered when the > handle low was broken as the volume picked up. Of > course he was refering to daily charts. Intraday > charts work the same way except its validity is much > shorter in duration. If the market were healthy, I > probably would have expected CSTR to pullback and test > the pp and a decision could be made after the test. > But with the other leading stocks weakening, there was > no question at that point that CSTR was going to break > below its pivot point. So I decided to sell it the > next morning along with the others for a small profit. > > I was kicking myself a few days later when CSTR barely > dipped below the pp and then rallied past my sell > price. But that lasted only one day. Thank goodness > the intraday chart gave me the only clue there was. > > As far as CVH was concerned, I ruled it out as a buy > candidate early on. There were several issues with > CVH. First was the lack of confirming strength in the > group - although the group ranking was high, other > stocks in the group either didn't have a proper base > (SIE), or had a wide and loose base (MME). I avoid > groups like this. Second CVH was overowned by > institutions - over 90% of ownership. WON's rule was > less than 50% institutional ownership. Third was a > non-CANSLIM issue: CVH was being investigated for > overcharging government. Although it was an old issue, > as long as it remained unresolved, there could always > be surprises. > > One final note. I don't think taking a 7% loss on > every losing trade is ok. If one takes a 7% loss in a > string of 5 trades (a finite probability), that's a > third of capital lost - too much for any trading > method, considering how hard it is to have a 50% > return (the amount needed to come back). My > understanding of it is that WON didn't intend 7% to be > where you place the stop order. Instead it's the > maximum allowable loss for a single trade. Usually it > should take a screwup to have a 7% loss. If one buys a > stock correctly, a 2-3% loss is achievable if the > stock fails. Sometimes one can even exit with a small > profit if the chart is read correctly. > > __________________________________________________ > Do You Yahoo!? > Yahoo! Finance - Get real-time stock quotes > http://finance.yahoo.com > > - > -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: Thu, 5 Sep 2002 08:50:07 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis John, if you want to view more than a 10 day chart at Big Charts, just change the setting for "Frequency" to one of the lower settings (below the line) such as Daily, Weekly, etc. The settings above the line (minute, 15 minutes, etc) only work with charts up to the last 10 days. - ----- Original Message ----- From: "John Calkins" To: Sent: Thursday, September 05, 2002 8:16 AM Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis Hi James, Thanks for your incredible responce to my Failed Breakout and Stops! I've tried to look at the intraday charts before but didn't take them seriously enough I guess. I have noted before that big moves on high volume during the day seemed to be connected to some news or something, but was afraid it was just market makers or day trading. I can't get more than 10 days ago at BigCharts for a history on CSTR for the time frame but I think I understand that when you see a CWH pattern within a 5 day then watch for a handle to form or breakdown or up in price with high volume. Do you look at BigCharts for this intraday charting and what is you setting preference, such as 5 or 10 day/ 1 hour or 15 min.? I had been getting my volume/price information each day from my telephone service with TD Waterhouse but it looks like your intra-day charts work much better. - ---- Original Message ----- From: "James Bond" To: Sent: Tuesday, September 03, 2002 6:44 PM Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis > CSTR presents an interesting example of the importance > of intraday charts. There is no clue of impending > trouble on the daily chart until the stock broke down. > The intraday chart, however, telegraphed the bad news > well in advance. > > Like many other people, I too cannot follow the market > during the day and have to check charts during the > evening. When I have a position open, I check the > chart every night with no exception. > > On Thursday, Aug 22, when this rally was still > advancing, I was surprised that evening to see many > bearish charts among the leading stocks. For example, > FCN had a deterioting relative strength, CCR made a > new high but its relative strength lagged, DORL gapped > to a new high but saw no progress in daily price > (distribution), and PIXR had formed an evening star > candlestick pattern. If one or two stocks were acting > poorly it probably wouldn't have bothered me so much. > When most of the leading stocks were showing signs of > weakness the market was in trouble. At that time I was > long CCR, CSTR, DORL, NUTR, and PIXR. My first > decision was to sell CCR, DORL and PIXR at the open > next morning, and but to keep CSTR and NUTR. > > I changed my mind when I looked at the intraday chart > for CSTR. On the daily chart, CSTR had formed an > impeccible CwH base, with pp at 31.22. The breakout > was on very good volume, and reached a high of 34.2. > Because of a little overhead resistance (as mentioned > by others), it was expected to form a second handle > before breaking out to new highs. This was also noted > by the issue of IBD the day after its breakout. It > consolidated between 32 and 34 the next 5 days, with > nothing extraordinary shown on the daily chart. I was > several times tempted to add shares when it pulled to > low 32's but thougt better of it. My plan was to add > to my position when it broke out of the second handle. > I wasn't even thinking about selling it before I > looked at the intraday chart. > > I was alarmed by the intraday chart. On the intraday > chart, the consolidation between 32 and 34 showed up > as a five day CwH formation, with the appropriate > volume actions (large volume on left and right sides, > dryups on bottom and in handle). Handle high was 33.76 > which was the intraday high on Thursday. Everything > was great except for the last hour or so of Thursday. > Some heavy selling came in and broke the handle > formation (little did I know that the Off Wall Street > report was issued to its clients on that Thursday). > WON told us that heavy selling in handle was a sign of > trouble, and a good short can be entered when the > handle low was broken as the volume picked up. Of > course he was refering to daily charts. Intraday > charts work the same way except its validity is much > shorter in duration. If the market were healthy, I > probably would have expected CSTR to pullback and test > the pp and a decision could be made after the test. > But with the other leading stocks weakening, there was > no question at that point that CSTR was going to break > below its pivot point. So I decided to sell it the > next morning along with the others for a small profit. > > I was kicking myself a few days later when CSTR barely > dipped below the pp and then rallied past my sell > price. But that lasted only one day. Thank goodness > the intraday chart gave me the only clue there was. > > As far as CVH was concerned, I ruled it out as a buy > candidate early on. There were several issues with > CVH. First was the lack of confirming strength in the > group - although the group ranking was high, other > stocks in the group either didn't have a proper base > (SIE), or had a wide and loose base (MME). I avoid > groups like this. Second CVH was overowned by > institutions - over 90% of ownership. WON's rule was > less than 50% institutional ownership. Third was a > non-CANSLIM issue: CVH was being investigated for > overcharging government. Although it was an old issue, > as long as it remained unresolved, there could always > be surprises. > > One final note. I don't think taking a 7% loss on > every losing trade is ok. If one takes a 7% loss in a > string of 5 trades (a finite probability), that's a > third of capital lost - too much for any trading > method, considering how hard it is to have a 50% > return (the amount needed to come back). My > understanding of it is that WON didn't intend 7% to be > where you place the stop order. Instead it's the > maximum allowable loss for a single trade. Usually it > should take a screwup to have a 7% loss. If one buys a > stock correctly, a 2-3% loss is achievable if the > stock fails. Sometimes one can even exit with a small > profit if the chart is read correctly. > > __________________________________________________ > Do You Yahoo!? > Yahoo! Finance - Get real-time stock quotes > http://finance.yahoo.com > > - > -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. ------------------------------ End of canslim-digest V2 #2906 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. 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