From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3381 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, June 19 2003 Volume 02 : Number 3381 In this issue: RE: [CANSLIM] Off topic Support - Resistance Re: RE: [CANSLIM] Off topic Support - Resistance Re: [CANSLIM] Support - Resistance [CANSLIM] FWHT and USNA [CANSLIM] Sounds like inflation ahead to me! ---------------------------------------------------------------------- Date: Thu, 19 Jun 2003 15:31:15 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] Off topic Support - Resistance This is a multi-part message in MIME format. - ------=_NextPart_000_0016_01C33677.D215AD70 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi Eric, I think you've brought up an important distinction that folks newer to the CANSLIM methodology may not understand. That is, CANSLIM is an intermediate term strategy. Mining methodologies, stock selection strategies, entries and exits are designed for that specific time period. Typical holdings are a few weeks to a few months, depending on the strength of the market. When the market is very strong, that holding period can extend even further, as one can hold a stock through a benign correction while it absorbs its move and vaults higher. While one can use short term swing trading strategies (holding times a few days to a couple of weeks) on "CANSLIM quality" stocks, that is *far* different than employing "a CANSLIM strategy." For the newbies, that distinction, if misunderstood, can put you in a position where you are mixing and matching short term entry strategies with intermediate term exit strategies or vice versa. Without a doubt, that's a formula for losing money. As Eric has suggested, part or all of a portfolio can be traded with swing/short term strategies short and long if market conditions are conducive. All in all, the secret to generating consistent outperformance to the market is to be very clear on the rules of the particular strategy utilized for that particular trade or investment, become a master at it, and execute very well. Losing focus by mixing and matching rules from one strategy to another and/or lacking the discipline it takes to develop that mastery is a dangerous and costly game. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike Sent: Thursday, June 19, 2003 2:10 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Off topic Support - Resistance I'll throw my 2 cents in here, as I've migrated toward swing trading in addition to positional breakout trading (of which CANSLIM is a powerful version). Swing trading is trading between support and resistance on the long side, and resistance and support on the short side. In its purest form, it involves trading a single, direct price thrust from support/resistance to resistance/support. In the strictest definitions, this "swing" in price will generally occur over 3-5 days, so you have fairly abbreviated holding periods. One generally does not hold through retracements. This is in contrast to CANSLIM trading, which advocates trading a breakout through resistance (the pivot point), holding through (benign) pullbacks, and selling at major tops. CANSLIM is a strategy to capture large, major moves. Swing trading is designed to capture smaller and quicker moves. The Master Swing Trader, by Alan Farley, was my introduction to swing trading. It is an excellent book, but very advanced, and I would definitely not recommend it for traders who are just starting out. He also offers an online course, available at hardrightedge.com, and writes a subscription newsletter (which I use and is excellent- available through Realmoney.com). However, these services are not cheap, and require a lot of work to employ effectively. Eric Gene Ricci wrote: |Can you say a little more about "support and resistance" trading? Dave| Hi Dave, I believe it is key to know what the trend is (sideways, up, down). If in Trading Range: Long a) when going long and the stock is rangebound - buy at a prescribed amount above the support point. Place stop just below support point. b) sell when stock price approaches resistance. Short a) when shorting and the stock is range bound - short at a prescribed amount below the resistance point. Place stop just above resistance point. b) cover when stock price approaches support. For Pullback trading in Trending market: Long a) when going long and the stock is pulling back in an uptrend - buy at a prescribed amount above the support point. Place stop just below support point. b) sell if price can not penetrate previous high, otherwise let your profits run. Short a) when shorting and the stock is rising (correcting) in a downtrend - short at a prescribed amount below the resistance point. Place stop just above resistance point. b) cover if price can not penetrate next support level, otherwise let your profits run. For Breakout strategies: (If support or resistance levels are broken or you anticipate they will be broken): Long a) when going long and the stock is in an uptrend - buy at a prescribed amount above the resistance point when price penetrates resistance with stop just below resistance. b) sell if price can not penetrate next resistance level otherwise let your profits run. Short a) when shorting and the stock is in a downtrend - short at a prescribed amount below the support point when price penetrates support, with stop just above support. b) cover when price can not penetrate next support level, otherwise let your profits run. Now it's time to get a bag of freshly popped popcorn and check out some movies: http://www.pring.com/movies.htm or got to StockCharts.com http://stockcharts.com/education/What/ChartAnalysis/supportResistance.html Here is a list of my reference books: 1) Intro to Technical Analysis - Martin Pring - $38.95 (comes with CD) 2) Breaking the Black Box - Martin Pring - $39.95 (comes with CD) 3) Come Into My Trading Room - Dr. Alexander Elder - $35.00 4) Methods of a Wall Street Master - Victor Sperandeo - $14.95 5) Secrets for Profiting in Bull and Bear Markets - Stan Weinstein - $19.95 We had Dallas workshop on Stan Weinstein's Method at the end of 2001 (gosh, it doesn't seem like it was that long ago), I'll dig around my archives to locate the workshop notes and forward them to you at a later date. Hope this helps, Gene - ------------------------------------------------------------------------------ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! - ------=_NextPart_000_0016_01C33677.D215AD70 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable
Hi Eric,
 
I think you've brought up an = important=20 distinction that folks newer to the CANSLIM methodology may not = understand. That=20 is, CANSLIM is an intermediate term strategy. Mining methodologies, = stock=20 selection strategies, entries and exits are designed for that specific = time=20 period. Typical holdings are a few weeks to a few months, depending on = the=20 strength of the market. When the market is very strong, that holding = period can=20 extend even further, as one can hold a stock through a benign correction = while=20 it absorbs its move and vaults higher.
 
While one can use short term swing = trading=20 strategies (holding times a few days to a couple of weeks) on = "CANSLIM=20 quality" stocks, that is *far* different than employing "a CANSLIM=20 strategy." For the newbies, that = distinction, if misunderstood, can put you in a position where you are = mixing=20 and matching short term entry strategies with intermediate term exit = strategies=20 or vice versa. Without a doubt, that's a formula for losing money. =
 
As Eric has suggested, part or all = of a=20 portfolio can be traded with swing/short term strategies short and long = if=20 market conditions are conducive.
 
All in all, the secret to = generating=20 consistent outperformance to the market is to be very clear on the rules = of the=20 particular strategy utilized for that particular trade or investment, = become a=20 master at it, and execute very well. Losing focus by mixing and matching = rules=20 from one strategy to another and/or lacking the discipline it takes to = develop=20 that mastery is a dangerous and costly game.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric=20 Jaenike
Sent: Thursday, June 19, 2003 2:10 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] Off topic = Support=20 - Resistance

I'll throw my 2 cents in here, as I've migrated toward swing = trading in=20 addition to positional breakout trading (of which CANSLIM is a = powerful=20 version).
 
Swing trading is trading between support and resistance on the = long side,=20 and resistance and support on the short side. In its purest form, it = involves=20 trading a single, direct price thrust from support/resistance to=20 resistance/support. In the strictest definitions, this "swing" in = price will=20 generally occur over 3-5 days, so you have fairly abbreviated holding = periods.=20 One generally does not hold through retracements. This is in contrast = to=20 CANSLIM trading, which advocates trading a breakout through resistance = (the=20 pivot point), holding through (benign) pullbacks, and selling at major = tops.=20 CANSLIM is a strategy to capture large, major moves. Swing trading is = designed=20 to capture smaller and quicker moves.
 
The Master Swing Trader, by Alan Farley, was my = introduction to=20 swing trading. It is an excellent book, but very advanced, and I would = definitely not recommend it for traders who are just starting out. He = also=20 offers an online course, available at hardrightedge.com, and writes a=20 subscription newsletter (which I use and is excellent- available = through=20 Realmoney.com). However, these services are not cheap, and require a = lot of=20 work to employ effectively.
 
Eric
 


Gene Ricci <genr@swbell.net> = wrote:
|Can = you say a=20 little more about "support and resistance" trading? Dave|
 
Hi Dave, I believe it = is key=20 to know what the trend is (sideways, up, down).
 
If in Trading=20 Range:
 
Long
a) when going long and the stock is rangebound = - -  buy=20 at a prescribed amount above the support point.   Place = stop just=20 below support point.
b) sell when stock price approaches=20 resistance.
 
Short
a) when shorting and the stock is range = bound  -=20 short at a prescribed amount below the resistance  point.  = Place=20 stop just above resistance point.
b) cover when stock price=20 approaches support.
 
For Pullback trading in Trending=20 market:
 
Long
a) when going long and the stock = is =20 pulling back in an uptrend -  buy at a prescribed amount above = the=20 support point.   Place stop just below support = point.
b) sell if price can not = penetrate=20 previous high, otherwise let your profits run.
 
Short
a) when shorting and the stock=20 is rising (correcting) in a downtrend - short at a = prescribed=20 amount below the resistance  point.  Place stop just above = resistance point.
b) cover if price can not = penetrate next=20 support level, otherwise let your profits = run.
 
 
For=20 Breakout strategies: = (If support or resistance levels are broken or you = anticipate they=20 will be broken):
 
Long
a) when going long and the stock = is in an=20 uptrend - buy at a prescribed amount above the resistance point when = price=20 penetrates resistance with stop just below resistance.
b) sell if price can not penetrate = next=20 resistance level otherwise let your profits run.
 
Short
a) when shorting and the stock is = in a=20 downtrend - short at a prescribed amount below the support point = when price=20 penetrates support, with stop just above support.
b) cover when  price can not = penetrate=20 next support level, otherwise let your profits = run. 
 
Now it's time to get = a bag of=20 freshly popped popcorn and check out some movies:
 
http://www.pring.com/movies.htm<= /A>
 
or got to = StockCharts.com
 
http://stockcharts.com/education/What/ChartAnalysis/supportRes= istance.html
 
Here=20 is a list of my reference books:
 
1) Intro to Technical = Analysis -=20 Martin Pring - $38.95 (comes with CD)
2) Breaking the Black Box = - - Martin=20 Pring - $39.95 (comes with CD)
3) Come Into My Trading = Room - Dr.=20 Alexander Elder - $35.00
4) Methods of a Wall = Street Master -=20 Victor Sperandeo - $14.95
5) Secrets for Profiting = in Bull and=20 Bear Markets - Stan Weinstein - $19.95
    We had Dallas workshop on = Stan=20 Weinstein's Method at the end of 2001
    = (gosh, it=20 doesn't seem like it was that long ago), I'll dig around my archives =
    = to locate=20 the workshop notes and forward them to you at a later=20 date.
 
Hope this = helps,
Gene

Do you Yahoo!?
SBC=20 Yahoo! DSL - Now only $29.95 per month! - ------=_NextPart_000_0016_01C33677.D215AD70-- - - - -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, 19 Jun 2003 14:02:23 -0700 (PDT) From: Bill Triffet Subject: Re: RE: [CANSLIM] Off topic Support - Resistance - ------=_Part_8817_6787698.1056056507202 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Another important distinction is the level of knowlege/skill required for successful swingtrading. Last year while I sat out most of the market I started reading "Master Swingtrader" by Alan S. Farley. It's some heavy reading! Waaaay too many indicators, patterns, and setups for the average Joe/Jane who works a fulltime non-investing job. That said, it did reveal how many times when a breakout fails, it plays into the hands of the swingtrader. Interesting book but you better make a strong pot of coffee before reading it! (g) - -- Bill >>While one can use short term swing trading strategies (holding times a few days to a couple of weeks) on "CANSLIM quality" stocks, that is *far* different than employing "a CANSLIM strategy." For the newbies, that distinction, if misunderstood, can put you in a position where you are mixing and matching short term entry strategies with intermediate term exit strategies or vice versa. Without a doubt, that's a formula for losing money.<< - ------=_Part_8817_6787698.1056056507202 Content-Type: TEXT/HTML; name=MESSAGE.HTML; charset=US-ASCII Content-Transfer-Encoding: 7bit Content-Disposition: attachment; filename=MESSAGE.HTML
Hi Eric,
 
I think you've brought up an important distinction that folks newer to the CANSLIM methodology may not understand. That is, CANSLIM is an intermediate term strategy. Mining methodologies, stock selection strategies, entries and exits are designed for that specific time period. Typical holdings are a few weeks to a few months, depending on the strength of the market. When the market is very strong, that holding period can extend even further, as one can hold a stock through a benign correction while it absorbs its move and vaults higher.
 
While one can use short term swing trading strategies (holding times a few days to a couple of weeks) on "CANSLIM quality" stocks, that is *far* different than employing "a CANSLIM strategy." For the newbies, that distinction, if misunderstood, can put you in a position where you are mixing and matching short term entry strategies with intermediate term exit strategies or vice versa. Without a doubt, that's a formula for losing money.
 
As Eric has suggested, part or all of a portfolio can be traded with swing/short term strategies short and long if market conditions are conducive.
 
All in all, the secret to generating consistent outperformance to the market is to be very clear on the rules of the particular strategy utilized for that particular trade or investment, become a master at it, and execute very well. Losing focus by mixing and matching rules from one strategy to another and/or lacking the discipline it takes to develop that mastery is a dangerous and costly game.
 
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike
Sent: Thursday, June 19, 2003 2:10 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Off topic Support - Resistance

I'll throw my 2 cents in here, as I've migrated toward swing trading in addition to positional breakout trading (of which CANSLIM is a powerful version).
 
Swing trading is trading between support and resistance on the long side, and resistance and support on the short side. In its purest form, it involves trading a single, direct price thrust from support/resistance to resistance/support. In the strictest definitions, this "swing" in price will generally occur over 3-5 days, so you have fairly abbreviated holding periods. One generally does not hold through retracements. This is in contrast to CANSLIM trading, which advocates trading a breakout through resistance (the pivot point), holding through (benign) pullbacks, and selling at major tops. CANSLIM is a strategy to capture large, major moves. Swing trading is designed to capture smaller and quicker moves.
 
The Master Swing Trader, by Alan Farley, was my introduction to swing trading. It is an excellent book, but very advanced, and I would definitely not recommend it for traders who are just starting out. He also offers an online course, available at hardrightedge.com, and writes a subscription newsletter (which I use and is excellent- available through Realmoney.com). However, these services are not cheap, and require a lot of work to employ effectively.
 
Eric
 


Gene Ricci <genr@swbell.net> wrote:
|Can you say a little more about "support and resistance" trading? Dave|
 
Hi Dave, I believe it is key to know what the trend is (sideways, up, down).
 
If in Trading Range:
 
Long
a) when going long and the stock is rangebound -  buy at a prescribed amount above the support point.   Place stop just below support point.
b) sell when stock price approaches resistance.
 
Short
a) when shorting and the stock is range bound  - short at a prescribed amount below the resistance  point.  Place stop just above resistance point.
b) cover when stock price approaches support.
 
For Pullback trading in Trending market:
 
Long
a) when going long and the stock is  pulling back in an uptrend -  buy at a prescribed amount above the support point.   Place stop just below support point.
b) sell if price can not penetrate previous high, otherwise let your profits run.
 
Short
a) when shorting and the stock is rising (correcting) in a downtrend - short at a prescribed amount below the resistance  point.  Place stop just above resistance point.
b) cover if price can not penetrate next support level, otherwise let your profits run.
 
 
For Breakout strategies: (If support or resistance levels are broken or you anticipate they will be broken):
 
Long
a) when going long and the stock is in an uptrend - buy at a prescribed amount above the resistance point when price penetrates resistance with stop just below resistance.
b) sell if price can not penetrate next resistance level otherwise let your profits run.
 
Short
a) when shorting and the stock is in a downtrend - short at a prescribed amount below the support point when price penetrates support, with stop just above support.
b) cover when  price can not penetrate next support level, otherwise let your profits run. 
 
Now it's time to get a bag of freshly popped popcorn and check out some movies:
 
 
or got to StockCharts.com
 
 
Here is a list of my reference books:
 
1) Intro to Technical Analysis - Martin Pring - $38.95 (comes with CD)
2) Breaking the Black Box - Martin Pring - $39.95 (comes with CD)
3) Come Into My Trading Room - Dr. Alexander Elder - $35.00
4) Methods of a Wall Street Master - Victor Sperandeo - $14.95
5) Secrets for Profiting in Bull and Bear Markets - Stan Weinstein - $19.95
    We had Dallas workshop on Stan Weinstein's Method at the end of 2001
    (gosh, it doesn't seem like it was that long ago), I'll dig around my archives
    to locate the workshop notes and forward them to you at a later date.
 
Hope this helps,
Gene

Do you Yahoo!?
SBC Yahoo! DSL - Now only $29.95 per month!
- ------=_Part_8817_6787698.1056056507202-- - - - -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, 19 Jun 2003 19:03:39 EDT From: Davellil5@aol.com Subject: Re: [CANSLIM] Support - Resistance Gene: Thanks for the comprehensive coverage of the support-resistance technique. It'll help me. Hope it helps others too. Dave - - - -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, 19 Jun 2003 19:43:03 -0400 From: "inderjit" Subject: [CANSLIM] FWHT and USNA This is a multi-part message in MIME format. - ------=_NextPart_000_0095_01C3369A.FFE09E40 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Tom Worley recommended this to me on the instant message in the middle of April. He had excellent discussion on USNA couple of years ago on this list. He was a smart CANSLIMer. He will always be missed on this list. - ------=_NextPart_000_0095_01C3369A.FFE09E40 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable

Tom Worley recommended this to me on the instant = message in the middle of April. He had excellent discussion on USNA couple of years = ago on this list.

He was a smart CANSLIMer. He will always be missed on = this list.

 

 

- ------=_NextPart_000_0095_01C3369A.FFE09E40-- - - - -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, 19 Jun 2003 19:04:15 -0500 From: "Fred Richards" Subject: [CANSLIM] Sounds like inflation ahead to me! This is a multi-part message in MIME format. - ------=_NextPart_000_0006_01C33695.975BAAE0 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit The U.S. Treasury announced an as-expected budget deficit of $90.5 billion in May. Year-to-date, the budget deficit stands at $292.1 billion vs. $145.4 billion in the year-ago period. Both individual and corporate tax receipts are sharply lower than a year ago, reflecting declining payrolls and soft business conditions. Government spending is high, especially for defense and Medicare. - --------------------- Wonder how long it will take the foreign investors to panic? And when they do, will the market continue on its way up? - ------=_NextPart_000_0006_01C33695.975BAAE0 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable Message
The U.S. Treasury announced an = as-expected budget=20 deficit of $90.5 billion in May. Year-to-date, the budget deficit stands = at=20 $292.1 billion vs. $145.4 billion in the year-ago period. Both = individual and=20 corporate tax receipts are sharply lower than a year ago, reflecting = declining=20 payrolls and soft business conditions. Government spending is high, = especially=20 for defense and Medicare.
 
---------------------
 
Wonder = how long it=20 will take the foreign investors to panic?  And when they do, will = the=20 market continue on its way up?
- ------=_NextPart_000_0006_01C33695.975BAAE0-- - - - -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 #3381 ****************************** 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.