From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3346 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, June 3 2003 Volume 02 : Number 3346 In this issue: Re: Re: [CANSLIM] breakouts to come [CANSLIM] Accessing the discussion canslim archives... [CANSLIM] FW: CANSLIM List FAQ (Monthly Posting) RE: Re: [CANSLIM] breakouts to come ---------------------------------------------------------------------- Date: Tue, 3 Jun 2003 07:02:35 -0600 From: "Rolf Hertenstein" Subject: Re: Re: [CANSLIM] breakouts to come You shouldn't get the registered letter as long as you don't actually post the contents of "Whare the BoG Monie's Floving" (just to be safe!). Anyway, I hope we're in the early stages of a longer bull run as well. It's starting to get fun again. But I'm not holding my breath. Like Katherine mentioned, IBD does have other uses. For those that like to start with fundies, the Earnings News can make a good mining starting point, though it's tedious. Rolf - ----- Original Message ----- From: "Bill Triffet" > Rolf, > I was referring to "Where The Big Moneys Flowing Now". There. I wrote it - > not the IBD police will be sending me my "letter". (I prefer not to call the > IBD features by exact name for that reason). It's updated throughout the > day. Sometimes a breakout show up there. Always worth a look. > > Late stage rally??? Boy I hope this "stage" of the bull run is an early one! > (g) I'm tired of the bear rally's and failed breakouts of the past. That > said, as long as the market is holding up...I'm still looking for fresh > ideas. I did notice a couple positions I hold (SHFL & MRVL)pull back today. > They are also mentioned in IBD's 100 so I expect them to pullback from the > exposure. (g) I'm using hard stops these days for protection. > > Another thing to look at with these broken out leaders is the LLUR pattern > (see the FAQ about this pattern). Sometimes they are a nice smooth slope up > that can do well. Ebay is a perfect example. I've been following this one up > with a trailing stop...just incase. > > -- > Bill > > > ----- Original Message ----- > From: "Rolf Hertenstein" > To: > Sent: Monday, June 02, 2003 10:39 AM > Subject: Re: Re: [CANSLIM] breakouts to come > > > Hi Bill - Are you referring to IBD's Screen of the Day? > > I think in a recent discussion of the market, IBD mentioned that further > breakouts at this stage of this bull run (however long it'll be) are more > likely to be 'second rate'. The real leaders have broken out and already > have good gains. This won't stop me from looking of course. > > Rolf > For list creation, I'd also do a quick scan of the daily updated stocks > featured on the IBD site for possible setup/entry points. > > -- > Bill > > > > ----------------------------------------------------------------- > I was just going through the charts of IBD100 last night, and was thinking > the exact same thing. Are there any other lists of high quality CANSLIM > stocks that should be scanned to check for proper price patterns? > > Chris > ----- Original Message ----- > From: Ann Hollingworth > To: CANSLIM Listserv > Sent: Monday, June 02, 2003 4:28 AM > Subject: [CANSLIM] breakouts to come > > > It seems to me, as I hunt through WR and IBD100, that there are a lot of > overextended stocks, and not to many on the right side of their cup or > ready to break out. > > It would seem to me that there could be two reasons for this: > > 1. The rally is going to wane. > > 2. The WR and IBD100 do not produce stocks at this state of their > development. > > Any comments?? > > 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. ------------------------------ Date: Tue, 03 Jun 2003 08:00:00 -0600 From: owner-canslim@xmission.com (Jeff Salisbury) Subject: [CANSLIM] Accessing the discussion canslim archives... From time to time, CANSLIM members may wish to browse the discussion archives. This posting provides instructions on how to access the archives. Thanks to David Cameron for compiling the essentials of this message. Here are the two ways to access the archives: 1. The best way is to use your web browser. To browse the archives, point your browser to: ftp://ftp.xmission.com/pub/lists/canslim/archive/ 2. (Not as convenient) via email: Send an email to majordomo@xmission.com with the following as the body of your message: "index canslim". Then send a follow up email to request an old email from either the "archive" or "latest" directory. Note that your request must be in the body of your email. For example: "get canslim latest/001" will retrieve file "001" from the "latest" directory. "get canslim archive/v01.n066" will retrieve file "v01.n066" from the "archive" dir. Best Regards, Jeff Salisbury - CANSLIM list owner/admin - - - -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, 3 Jun 2003 09:10:10 -0500 From: "Katherine Malm" Subject: [CANSLIM] FW: CANSLIM List FAQ (Monthly Posting) This is a multi-part message in MIME format. - ------=_NextPart_000_0003_01C329AF.EF56BAC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 8bit This FAQ is also available at: http://WallStreet-LLC.com/canslim/CANSLIMFAQ.doc or http://WallStreet-LLC.com/canslim/CANSLIMFAQ.zip (zipped version for those who are having trouble displaying the document within their browser) Scope of discussion, Etiquette: Here are a couple of quotes from the welcome email that Jeff Salisbury, the list owner and host, sends to each new member: "This is an unmoderated discussion group whose purpose is to provide a forum for individuals to: 1.. Discuss the ideas and concepts of CANSLIM. 2.. Add to the concepts of CANSLIM from personal experience. 3.. Exchange sources of information on the internet and software that can be used to select stocks using the CANSLIM methodology. 4.. Discuss specific equities and how they may or may not meet the CANSLIM criteria. " "Anyone who resorts to rudeness, flaming, and personal attacks will be removed from our group." “By signing up for this list, you agree to the following: This list is a private list. All information that you take from this list is for your private use only. Commercial use of this information is forbidden.” Commonly used (misc) abbreviations: BO or B/O = Breakout DD= Due Diligence dMA = days Moving Average (a simple moving average unless otherwise specified) FTD = Follow Through Day http://www.market-tester.com/primer.htm HTMMIS = "How to Make Money in Stocks" by William J. O'Neil IBD = Investors Business Daily (www.investors.com) IMHO = In My Humble Opinion sometimes used as IMO or JMO or my $0.02 LOL = Laughing Out Loud M = Market ( the "M" in CANSLIM) MA = Moving Average N = New (the "N" in CANSLIM) VR = Virtual Reality fund (Fund where “everything’s real except the money”…see www.marketocracy.com) WON = William O'Neil, originator of CANSLIM IBD/CANSLIM Proprietary Rankings: A/D = Accumulation/Distribution EPS = Earnings per Share Rank GRS = Group Relative Strength RS = Relative Strength SMR = Sales/Margins/ROE Comp = Composite Ranking Accounting/Finance Abbreviations: BS or B/S = Balance Sheet cflo = Cash Flow D/E = Debt to Equity IS or I/S = Income Statement PE or P/E = Price to Earnings ratio Pro Forma earnings = http://www.sec.gov/investor/pubs/proforma12-4.htm Accounting 101: http://uoutperform.com/New_Folder/fundamental_analysis.htm http://www.investopedia.com/university/fundamentalanalysis/ http://www.WallStreet-LLC.com/canslim/Accounting101.doc Commonly discussed technical patterns: 2B=Double Bottoms A Base = Ascending Base C&H or CwH = Cup and Handle (http://www.cwhcharts.com/WON_cwh.htm.) FB=Flat Base HTF = High Tight Flag LLUR = Lower Left Upper Right (a stock on the rise, channeling in a tight range) For general discussion of chart patterns: http://stockcharts.com/education/What/ChartAnalysis/index.html Commonly discussed software/tools: AAII Stock Investor Pro http://www.aaii.com/ - money back guarantee DGO= DailyGraphs Online ( www.dailygraphs.com ) – 7 day trial $19.95 HGSI = High Growth Stock Investing (www.highgrowthstock.com) – 60 day paid trial $49 QP2 = Quotes Plus (www.qp2.com) TC2000 = Worden Brothers TC2000 technical analysis software (http://www.tc2000.com ) -30 day free trial VV= VectorVest (www.vectorvest.com) – 5 week trial $9.95 If you are new to CANSLIM investing (or just need a refresher): Take advantage of the excellent learning center at the IBD site-- www.investors.com/learn Free sites for stock scanning: http://moneycentral.msn.com/investor/finder/predefstocks.asp http://www.marketguide.com/screen/SScreen.asp http://cbs.marketwatch.com/tools/stockresearch/screener/ Free sites for charting: www.stockcharts.com www.bigcharts.com http://www.moneycentral.msn.com/investor/charts/charting.asp?Symbol=csco Due diligence sites: Company's web site http://biz.yahoo.com/p/c/csco.html http://moneycentral.msn.com/investor/research/newsnap.asp?Symbol=CSCO www.cwhcharts.com/canslim (limited to 5 stocks per person per day) www.investors.com (Requires subscription-look for the stock checkup feature) http://my.zacks.com/reports/reports.php3?HLITE1=6699BC&HLITE2=DEDEC5&ticker=SBUX &session=TMP.JEFFREY&type=100 (This is the “Whole Enchilada” report) Free sites for viewing industry information: http://host.wallstreetcity.com/wsc2/Industry_Group_Report.html http://bigcharts.marketwatch.com/industry/bigcharts-com/ http://www.prophet.net/explore/sectorrankings.jsp http://clearstation.etrade.com/cgi-bin/Itechnicals?Sector=0 Free resources for real time tracking: www.quotetracker.com Tools provided by members: - -CANSLIM Evaluator provided by Mike Gibbons: A tool that evaluates a stock against each of the CANSLIM criteria except M. (http://www.cwhcharts.com/canslim) - -Charts for CANSLIM provided by Mike Gibbons: A straightforward chart showing the price/volume action, pivots, % off 52 wk high, RS Line relative to the S&P500, RS Rank plotted over time, U/D ratio over time. Displays daily for 3, 6, 9, or 12 months (daily) or 1, 2 or 3 years (weekly). Updated with delayed intraday pricing as well. (http://www.cwhcharts.com/charts/kmchart.php) - -CANSLIMLinks provided by Katherine Malm: An Excel spreadsheet that contains macros for creating links to sites useful for evaluating CANSLIM stocks. Allows you to list stocks of your choosing. Full functionality only available with Excel 2000 for Windows. Limited functionality in prior versions. (http://www.cwhcharts.com/katherine/CANSLIMLinksAutomated.zip) - -Favorite Resources provided by Katherine Malm: A Word document listing various sites I find useful in CANSLIM investing. (http:// www.cwhcharts.com/katherine /FavoriteResourcesKM.doc) List FAQ compiled by Katherine Malm. If you have suggestions for additions and/or revisions, please contact me at kmalm@earthlink.net Rev 5/13/03 In memory of Tom Worley 4/26/03 Mentor, friend, and the anchor of the CANSLIM list for nearly 10 years Thank you for your many contributions. Rest in peace, Tom. - ------=_NextPart_000_0003_01C329AF.EF56BAC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

This FAQ is also available at: = http://WallStre= et-LLC.com/canslim/CANSLIMFAQ.doc=20 or  http://Wall= Street-LLC.com/canslim/CANSLIMFAQ.zip=20 (zipped version for those who are having trouble displaying the document = within=20 their browser)

 

Scope of=20 discussion, Etiquette:

Here are a = couple=20 of quotes from the welcome email that Jeff Salisbury, the list = owner and=20 host, sends to each new member:

 

"This is an = unmoderated=20 discussion group whose purpose is to provide a forum for individuals to: =

  1. Discuss=20 the ideas and concepts of CANSLIM.=20
  2. Add=20 to the concepts of CANSLIM from personal experience.=20
  3. Exchange=20 sources of information on the internet and software that can be used = to select=20 stocks using the CANSLIM methodology.=20
  4. Discuss=20 specific equities and how they may or may not meet the CANSLIM=20 criteria. "

"Anyone who resorts to rudeness, flaming, and personal attacks will = be=20 removed from our group."

=93By signing up for this list, you agree to the following:  = This list is=20 a private list.  All information that you take from this list is = for your=20 private use only.  Commercial use of this information is = forbidden.=94

Commonly used = (misc)=20 abbreviations:

BO or B/O =3D = Breakout

DD=3D Due = Diligence

dMA =3D days Moving = Average (a=20 simple moving average unless otherwise specified)

FTD =3D Follow = Through Day http://www.market-tester= .com/primer.htm

HTMMIS =3D "How to = Make Money in=20 Stocks" by William J. O'Neil

IBD =3D Investors = Business=20 Daily  (www.investors.com)

IMHO =3D In My Humble = Opinion=20 sometimes used as IMO or JMO or my $0.02

LOL =3D Laughing Out = Loud

M =3D Market ( the = "M" in=20 CANSLIM)

MA =3D Moving = Average

N =3D New (the "N" in = CANSLIM)

VR =3D Virtual = Reality fund (Fund=20 where =93everything=92s real except the money=94=85see = www.marketocracy.com)

WON =3D William = O'Neil, originator=20 of CANSLIM

 

IBD/CANSLIM = Proprietary=20 Rankings:

A/D =3D=20 Accumulation/Distribution

EPS =3D Earnings per = Share Rank

GRS =3D Group = Relative Strength

RS =3D Relative = Strength

SMR =3D = Sales/Margins/ROE

Comp =3D Composite = Ranking

 

Accounting/Finance=20 Abbreviations:

BS or B/S =3D Balance = Sheet

cflo =3D Cash = Flow

D/E =3D Debt to = Equity

IS or I/S =3D Income = Statement

PE or P/E =3D Price = to Earnings=20 ratio

Pro Forma earnings = =3D http://www.sec= .gov/investor/pubs/proforma12-4.htm

 

Accounting = 101:

http:= //uoutperform.com/New_Folder/fundamental_analysis.htm
http= ://www.investopedia.com/university/fundamentalanalysis/
http://w= ww.WallStreet-LLC.com/canslim/Accounting101.doc

 

Commonly = discussed technical=20 patterns:

2B=3DDouble=20 Bottoms

A Base =3D Ascending = Base

C&H or CwH =3D = Cup and=20 Handle  (http://www.cwhcharts.com/WO= N_cwh.htm.)

FB=3DFlat Base

HTF =3D High Tight = Flag

LLUR =3D Lower Left = Upper=20 Right (a stock on the rise, channeling in a tight range)

For general = discussion of chart=20 patterns: h= ttp://stockcharts.com/education/What/ChartAnalysis/index.html<= /P>

 

Commonly = discussed=20 software/tools:

AAII Stock Investor = Pro http://www.aaii.com/ - money back = guarantee

DGO=3D DailyGraphs=20 Online  ( www.dailygraphs.com ) =96 = 7 day trial=20 $19.95

HGSI =3D High Growth = Stock=20 Investing (www.highgrowthstock.com) = =96 60 day=20 paid trial $49

QP2 =3D Quotes Plus = (www.qp2.com)

TC2000 =3D  = Worden Brothers=20 TC2000 technical analysis software (http://www.tc2000.com ) -30 day free trial

VV=3D VectorVest (www.vectorvest.com) =96 5 week = trial=20 $9.95

 

If you are new to = CANSLIM=20 investing (or just need a refresher):

Take advantage of the = excellent=20 learning center at the IBD site-- www.investors.com/learn

 

Free sites for = stock=20 scanning:

htt= p://moneycentral.msn.com/investor/finder/predefstocks.asp

http://www.marketg= uide.com/screen/SScreen.asp

http://= cbs.marketwatch.com/tools/stockresearch/screener/

 

Free sites for=20 charting:

www.stockcharts.com

www.bigcharts.com

http://www.moneycentral.msn.com/investor/charts/charting.asp?S= ymbol=3Dcsco

 

Due diligence = sites:

Company's web = site

http://biz.yahoo.com/p/c/csco= .html

http://moneycentral.msn.com/investor/research/newsnap.asp?Symbol=3D= CSCO

www.cwhcharts.com/canslim = (limited=20 to 5 stocks per person per day)

www.investors.com (Requires=20 subscription-look for the stock checkup feature)

h= ttp://my.zacks.com/reports/reports.php3?HLITE1=3D6699BC&HLITE2=3DDEDE= C5&ticker=3DSBUX&session=3DTMP.JEFFREY&type=3D100=20 (This is the =93Whole Enchilada=94 report)

 

Free sites=20 for viewing industry information:

h= ttp://host.wallstreetcity.com/wsc2/Industry_Group_Report.html

http://= bigcharts.marketwatch.com/industry/bigcharts-com/

http://www.pro= phet.net/explore/sectorrankings.jsp

ht= tp://clearstation.etrade.com/cgi-bin/Itechnicals?Sector=3D0

 

Free resources = for real time=20 tracking:

www.quotetracker.com

 

Tools provided by = members:

-CANSLIM Evaluator = provided by=20 Mike Gibbons: A tool that evaluates a stock against each of the CANSLIM = criteria=20 except M. (http://www.cwhcharts.com/cansli= m)

-Charts for = CANSLIM provided=20 by Mike Gibbons: A straightforward chart showing the price/volume = action,=20 pivots, % off 52 wk high, RS Line relative to the S&P500, RS Rank = plotted=20 over time, U/D ratio over time. Displays daily for 3, 6, 9, or 12 months = (daily)=20 or 1, 2 or 3 years (weekly). Updated with delayed intraday pricing as = well. (http://www.cwhcharts= .com/charts/kmchart.php)

-CANSLIMLinks = provided by=20 Katherine Malm: An Excel spreadsheet that contains macros for creating = links to=20 sites useful for evaluating CANSLIM stocks. Allows you to list stocks of = your=20 choosing. Full functionality only available with Excel 2000 for Windows. = Limited=20 functionality in prior versions. (htt= p://www.cwhcharts.com/katherine/CANSLIMLinksAutomated.zip)

-Favorite Resources = provided by=20 Katherine Malm: A Word document listing various sites I find useful in = CANSLIM=20 investing. (http:// www.cwhcharts.com/katherine /Fav= oriteResourcesKM.doc)

 

 

List FAQ compiled by = Katherine=20 Malm. If you have suggestions for additions and/or revisions, please = contact me=20 at kmalm@earthlink.net

Rev 5/13/03

  

In memory of Tom = Worley=20 4/26/03

Mentor, friend, and = the anchor of=20 the CANSLIM list for nearly 10 years

Thank you for your = many=20 contributions. Rest in peace, Tom.

 

- ------=_NextPart_000_0003_01C329AF.EF56BAC0-- - - - -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: Mon, 2 Jun 2003 23:10:48 -0700 (PDT) From: Richard Subject: RE: Re: [CANSLIM] breakouts to come - --0-1726079803-1054620648=:84262 Content-Type: text/plain; charset=us-ascii Katherine, I've been lurking and learning for a few weeks, but I just have to step out of the shadows to thank you for shining a spotlight on exactly the thing I needed to learn right now. I'm a new CS'er, I've been dabbling with small positions (50 to 100 shares), stopping out fairly conservatively and doing extensive post-mortems on what went right and wrong. With real money on the line (albeit not amounts that could hurt me greatly if things went awry), I feel like I'm getting an important dose of emotion harnessing practice early on. But my re-reads of HTMMIS always dropped me off at IBD's doorstep when it came to mining. This is a very welcome "a-ha" lesson - one of many that this group has taught so well. Thanks to Katherine and everyone. Richard Katherine Malm wrote: Hi Ann and all, I have to agree with Bill on this. By the time something makes it to a list like the WR or the IBD100, they've already *become* the leaders. It makes a heck of a lot more sense to catch them as they're *becoming* leaders. That is, if RS>=85 is considered a leader, then how the heck did they get there? They rose from a lower RSRank to get there in the first place. If they were rising in RSRank, then they were *rising in price.* While looking for outperformance to the market and to other stocks is a cornerstone of CANSLIM investing, I've never agreed that mining should only be done after the stock is at RSRank 80 or 85. It's true that leaders will pull back and offer new entry points, so having a list of leaders is helpful. But the problem is, if you want to get the best part of the move, you've got to be watching these guys as they set up and start the lion's share of the move. The IBD started publishing an index of the WR stocks over time, showing a mild percentage gain vs. a sink hole return in the indexes during the Bear, but I suspect that if one were to instead publish an index of stocks breaking out of sound bases starting at a non-laggard RSRank>=70, then the index would be substantially higher. Years ago, a friend of mine and I would meet every Saturday for coffee and pour over the IBD together. At the time, he kept asking why the heck all the stocks mentioned in the paper didn't offer up a good entry point. Most of the time, the lists of stocks, the minigraphs, etc. were already too extended. That meant that in order to use the IBD itself for mining, we had to sift through the lilliputian stock tables highlighting stocks from RSRank 70 and up, highlight up and coming Industries, add the stocks from "Where the Big Money is Flowing" then one by one look at all the charts. It was exhausting and incredibly time consuming. My conclusion after practically loosing my eyesight (and my Saturdays) was that while the IBD is an incredible resource for current news, information on companies, keeping tabs on the Market and learning about CANSLIM, it's a lousy mining tool. Once I'd figured that out, I set out to instead devise a methodology that would let me mine for stocks that met the minimum requirements for a CANSLIM-quality stock and were *just* beginning to outperform and setup for a breakout. The goal was to own a stock before it showed up in the IBD. Just as Bill suggested, seeing it in the IBD *after* I'd found it was the ultimate test. Or, another way of saying it was that I didn't want to see a single stock mentioned in the IBD that I didn't already know about. For the most part, I think that implies that at the very least, one needs some sort of technical software to do this. Many here use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and each has their own particular approach. But even with these tools, it still requires looking through a lot of charts every day to make sure you're seeing the stocks *as* they set up. As I'd rather be hiking the Grand Canyon or having a margarita by the pool, that time spent motivated me to develop even better tools for finding stocks setting up for a breakout, leading to my partnership with Mike at the cwhcharts.com site. That means that there is a third alternative to sifting through the IBD or through a lot of charts, and that is to let a computer do all that time consuming work for you. Our approach is to let the computer find *all* the non-laggard stocks currently setting up in cup with handle bases, put them on a watchlist, and then let us know automatically if they are breaking out above their pivots. Now *there's* an excuse to have another dip in the pool! Katherine - --------------------------------- Do you Yahoo!? Free online calendar with sync to Outlook(TM). - --0-1726079803-1054620648=:84262 Content-Type: text/html; charset=us-ascii
Katherine, I've been lurking and learning for a few weeks, but I just have to step out of the shadows to thank you for shining a spotlight on exactly the thing I needed to learn right now.
 
I'm a new CS'er, I've been dabbling with small positions (50 to 100 shares), stopping out fairly conservatively and doing extensive post-mortems on what went right and wrong. With real money on the line (albeit not amounts that could hurt me greatly if things went awry), I feel like I'm getting an important dose of emotion harnessing practice early on.
 
But my re-reads of HTMMIS always dropped me off at IBD's doorstep when it came to mining. This is a very welcome "a-ha" lesson - one of many that this group has taught so well.
 
Thanks to Katherine and everyone.
 
Richard

Katherine Malm <kmalm@earthlink.net> wrote:
Hi Ann and all,
 
I have to agree with Bill on this. By the time something makes it to a list like the WR or the IBD100, they've already *become* the leaders. It makes a heck of a lot more sense to catch them as they're *becoming* leaders. That is, if RS>=85 is considered a leader, then how the heck did they get there? They rose from a lower RSRank to get there in the first place. If they were rising in RSRank, then they were *rising in price.* While looking for outperformance to the market and to other stocks is a cornerstone of CANSLIM investing, I've never agreed that mining should only be done after the stock is at RSRank 80 or 85. It's true that leaders will pull back and offer new entry points, so having a list of leaders is helpful. But the problem is, if you want to get the best part of the move, you've got to be watching these guys as they set up and start the lion's share of the move. The IBD started publishing an index of the WR stocks over time, showing a mild percentage gain vs. a sink hole return in the indexes during the Bear, but I suspect that if one were to instead publish an index of stocks breaking out of sound bases starting at a non-laggard RSRank>=70, then the index would be substantially higher.
 
Years ago, a friend of mine and I would meet every Saturday for coffee and pour over the IBD together. At the time, he kept asking why the heck all the stocks mentioned in the paper didn't offer up a good entry point. Most of the time, the lists of stocks, the minigraphs, etc. were already too extended. That meant that in order to use the IBD itself for mining, we had to sift through the lilliputian stock tables highlighting stocks from RSRank 70 and up, highlight up and coming Industries, add the stocks from "Where the Big Money is Flowing" then one by one look at all the charts. It was exhausting and incredibly time consuming. My conclusion after practically loosing my eyesight (and my Saturdays) was that while the IBD is an incredible resource for current news, information on companies, keeping tabs on the Market and learning about CANSLIM, it's a lousy mining tool.
 
Once I'd figured that out, I set out to instead devise a methodology that would let me mine for stocks that met the minimum requirements for a CANSLIM-quality stock and were *just* beginning to outperform and setup for a breakout. The goal was to own a stock before it showed up in the IBD. Just as Bill suggested, seeing it in the IBD *after* I'd found it was the ultimate test. Or, another way of saying it was that I didn't want to see a single stock mentioned in the IBD that I didn't already know about. For the most part, I think that implies that at the very least, one needs some sort of technical software to do this. Many here use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and each has their own particular approach. But even with these tools, it still requires looking through a lot of charts every day to make sure you're seeing the stocks *as* they set up. As I'd rather be hiking the Grand Canyon or having a margarita by the pool, that time spent motivated me to develop even better tools for finding stocks setting up for a breakout, leading to my partnership with Mike at the cwhcharts.com site. That means that there is a third alternative to sifting through the IBD or through a lot of charts, and that is to let a computer do all that time consuming work for you. Our approach is to let the computer find *all* the non-laggard stocks currently setting up in cup with handle bases, put them on a watchlist, and then let us know automatically if they are breaking out above their pivots. Now *there's* an excuse to have another dip in the pool!
 
Katherine

Do you Yahoo!?
Free online calendar with sync to Outlook(TM). - --0-1726079803-1054620648=:84262-- - - - -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 #3346 ****************************** 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.