From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3513 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 12 2003 Volume 02 : Number 3513 In this issue: RE: [CANSLIM] TASR and PDII [CANSLIM] WSB and WRLD Re: [CANSLIM] OT: Worm Virus alert Re: [CANSLIM] TASR and PDII Re: [CANSLIM] OT: Worm Virus alert Re: [CANSLIM] elder and triple screens ---------------------------------------------------------------------- Date: Tue, 12 Aug 2003 17:04:47 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] TASR and PDII Hi Yien, Both PDII and TASR put in high volume reversal days today, or a "tail down." That, in combination with the other clues of a top would make me believe that both are due for some sort of correction. That correction could be mild or could take them back to a recent area of logical support. One of the great downsides to CANSLIM investing is that it has a huge following. I call it "having too many eyes" on a stock. Others describe it as "the momentum crowd taking over." Either way, these stocks are in nosebleed territory and need to be watched closely. Here is a checklist which will help you determine whether a stock "may" be putting in a top. Of course, one never knows until after the top has been put in. The choices are (1) sell into a potential top given that the signs are there or (2) ride it out, assuming that the correction will be mild enough that a consolidation will create a launching pad for the next move up. Summary: Signs of potential climax runs: If a stock's price is overextended from its base and: (1) its price closes for a larger increase than on any prior up days (ultimate top often occurs on heaviest volume day since the beginning of the advance) (2) if it has been advancing rapidly and opens on a gap up in price (advance is probably near its peak) (3) the stock's price breaks badly for several days and does not rally (4) suddenly makes its greatest one-day price drop since the beginning of the move (consider in context of additional sell signals,industry group weakness, market weakness, fundamental weakness in stock) (5) a stock split is announced and the stock runs up sharply for 1-2 weeks. Other signals of topping: (1) Stock has advanced a number of months and price rises 25-50% on heavy volume in a couple of weeks (2) Churning: Stock trades on heavy volume but can't manage meaningful price gains (3) Wedging: New price highs on low volume (4) Price repeatedly falls on high volume (5) Leader in industry group puts in climax top (6) Tail Down--Stock stages a high volume reversal after a healthy run-up Overextension from the base is a nebulous term, but generally you're into "extended" territory when: (1) the stock gets into "rubberband sell rule territory"--i.e. >=25% above the 50dMA AND >=70% above the 200dMA (2) the current forward PE has expanded to 120% of the trailing PE (i.e. 2.2 times) at the time of the breakout. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Yien T Lung Sent: Tuesday, August 12, 2003 12:08 PM To: canslim@lists.xmission.com Subject: [CANSLIM] TASR and PDII Hi guys, I am trying to improve my selling skills. Would TASR and PDII be possible examples of climax tops? Thanks Yien - - - -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, 12 Aug 2003 17:39:45 -0500 From: "Jeff Henderson" Subject: [CANSLIM] WSB and WRLD This is a multi-part message in MIME format. - ------=_NextPart_000_0001_01C360F8.B89208C0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit I was thinking about longing both of these in the event that they up tick past today's highs. Does this look good or not to you? Jeff H. - ------=_NextPart_000_0001_01C360F8.B89208C0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable

I was thinking about longing both of these in the = event that they up tick past today’s highs. Does = this look good or not to you?

 

Jeff H.

- ------=_NextPart_000_0001_01C360F8.B89208C0-- - - - -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, 12 Aug 2003 17:38:26 -0400 From: "Charles & Lois Layne" Subject: Re: [CANSLIM] OT: Worm Virus alert - ----- Original Message ----- From: "Bill Triffet" > Just a heads up... > > There is a new worm virus going around (which I just got last night ) called MSBlaster. My latest updated virus software missed it. Thankfully it's easily removed. > Symantec has a worm removal tool on their site, along with instructions: http://securityresponse.symantec.com/avcenter/venc/data/w32.blaster.worm.rem oval.tool.html Chuck Layne - - - -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, 12 Aug 2003 18:14:37 -0500 From: "Gene Ricci" Subject: Re: [CANSLIM] TASR and PDII This is a multi-part message in MIME format. - ------=_NextPart_000_023A_01C360FD.9763AC30 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Yien, since you've recognized the pattern, does it really matter what = it's called it?=20 Why not just limit your downside with a trailing stop?=20 Ask yourself this question...... will I buy it tomorrow? If the answer is no and the reasoning points to: 1. too far too fast or 2. extended or 3. market conditions or 4. met my profit target or 5. etc. I immediately start thinking of my safety net..... stops... are they = tight enough and/or is it just the right time to sell. I like the looks of both stock charts but since I can't ignore today's = market conditions.... I would sell 50+% of my holdings and sprinkle = rocket fuel on the balance and keep moving (daily) my trailing stops up. = Gene =20 ----- Original Message -----=20 From: Yien T Lung=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 12, 2003 12:08 PM Subject: [CANSLIM] TASR and PDII Hi guys, I am trying to improve my selling skills. Would TASR and PDII be = possible examples of climax tops? Thanks Yien - -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_000_023A_01C360FD.9763AC30 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Yien, since you've recognized the = pattern, does=20 it really matter what it's called it?
 
Why not just limit your downside = with a=20 trailing stop?
 
Ask yourself this question...... will = I buy it=20 tomorrow?
 
If the answer is no and the reasoning = points=20 to:
        = 1. too far=20 too fast
or    2. = extended
or    3. market=20 conditions
or    4. met my profit=20 target
or    5. = etc.
 
I immediately start thinking of my = safety=20 net..... stops... are they tight enough and/or is it just the right time = to=20 sell.
 
I like the looks of both stock charts = but since=20 I can't ignore today's market conditions.... I would sell 50+% of my holdings and sprinkle = rocket fuel=20 on the balance and keep moving (daily) my trailing stops up.=20
 
Gene
 
 
----- Original Message -----
From:=20 Yien T=20 Lung
Sent: Tuesday, August 12, 2003 = 12:08=20 PM
Subject: [CANSLIM] TASR and = PDII


Hi guys,

I am trying to improve my selling = skills.=20 Would TASR and PDII be possible
examples of climax=20 tops?

Thanks

Yien




-
-To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your email.
- ------=_NextPart_000_023A_01C360FD.9763AC30-- - - - -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, 12 Aug 2003 18:20:31 -0500 From: "Gene Ricci" Subject: Re: [CANSLIM] OT: Worm Virus alert This is a multi-part message in MIME format. - ------=_NextPart_000_0279_01C360FE.6A376200 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks Chuck... installed without a hitch. Gene ----- Original Message -----=20 From: Charles & Lois Layne=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 12, 2003 4:38 PM Subject: Re: [CANSLIM] OT: Worm Virus alert ----- Original Message ----- From: "Bill Triffet" > Just a heads up... > > There is a new worm virus going around (which I just got last night = ) called MSBlaster. My latest updated virus software missed it. = Thankfully it's easily removed. > Symantec has a worm removal tool on their site, along with = instructions: = http://securityresponse.symantec.com/avcenter/venc/data/w32.blaster.worm.= rem oval.tool.html Chuck Layne - -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_000_0279_01C360FE.6A376200 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Thanks Chuck... installed without a=20 hitch.
Gene
----- Original Message -----
From:=20 Charles=20 & Lois Layne
Sent: Tuesday, August 12, 2003 = 4:38=20 PM
Subject: Re: [CANSLIM] OT: Worm = Virus=20 alert


----- Original Message -----
From: "Bill = Triffet" <btriffet@earthlink.net>
=

>=20 Just a heads up...
>
> There is a new worm virus going = around=20 (which I just got last night )
called MSBlaster. My latest updated = virus=20 software missed it. Thankfully
it's easily = removed.
>

Symantec=20 has a worm removal tool on their site, along with = instructions:

http://securityresponse.symantec.com/avcenter/venc/data/w32.= blaster.worm.rem
oval.tool.html


Chuck=20 Layne




-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your email.
- ------=_NextPart_000_0279_01C360FE.6A376200-- - - - -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, 12 Aug 2003 09:43:18 -0700 From: "DMC197807" Subject: Re: [CANSLIM] elder and triple screens This is a multi-part message in MIME format. - ------=_NextPart_000_018A_01C360B6.29429690 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable MessageKatherine, I always try to ask fair questions. Sorry to hear about Tom, before my = time unfortunately. I agree a detailed discussion of Elder's triple screen technique = (although it's just 8 short pages in his book) is not something people = want to get bogged down in, but I am curious what the thread is willing = to get bogged down in. For example, we had 10 or 11 posts this morning = on streaming quotes (un-citable in my New Testament, er, HTMMIS). I = would think a few notes on multi-time frame analysis of charts could be = quite valuable, but that's just me. I didn't mind giving Jeff a little = guidance about the subject, maybe one or more of the 800 "voices" out = there (that would be 1600 ears, as well as 1600 eyes, except for those = hearing or sight impaired, but I digress . . .) never heard or just = heard a little about 3-D (Farley) or triple screen (Elder) investing and = would like a clue as to what it is and what it means. A mention of a stock always solicits an opinion, but as a = stock-generating medium I think it's very flawed. First of all there's = the pump & dump worry (poster X buys ABC stock and then puts out bullish = "analysis" throughout the cyberworld), 2nd of all, if you didn't = generate the idea for the stock and make the purchase decision, then for = damn sure you won't know when or how to get out of it. So, the main function of the thread is to be educational, to exchange = ideas (and humor!), keep it light and informative and not pedantic or = dreary or oppressive. I was a little sorry to see Mark Crisp (was that = his name) driven from the thread, although I recognized that he shared = the blame. In any event, I think you need a little fresh air here = (that's what Gene called me) and a little iconoclastic skepticism, even = about Milscan and His Nibs, WON. DMC ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 12, 2003 9:00 AM Subject: RE: [CANSLIM] elder and triple screens Hi DMC, A fair question. I stay in close contact with our list owner, Jeff = Salisbury. However, I am a volunteer as is everybody on the list and I = do not speak for Jeff. Before you arrived, Tom Worley, who you may have = seen mentioned here, was a long time member of the list and the defacto = "glue." But Tom was also a volunteer with no official title. We lost him = to a tragic accident the end of April. A fresh point of view from anybody is always welcome, but we just need = to be sure that we don't get too far afield. A singular focused topic, = CANSLIM investing, has allowed us to stay an active and civil list for = over 10 years. People know they can come here and talk CANSLIM. CANSLIM = has many aspects, the methodology itself, money management, trading = psychology, buy rules, sell rules, reading charts, interpreting = fundamentals, reading the Market direction, software/tools/services in = support of the methodology/trading and more, including "advanced" topics = such as shorting, reading trend lines, etc. Those topics alone can keep = us busy for a lifetime.=20 Something like Elder triple screens is just too far off track. There = are thousands of lists devoted to more general aspects of trading, to = other investment styles, trading time frames, etc. The main idea is to = just move those kinds of discussions to their approriate location. All we ask of our members is to stay on topic and be respectful of = each other when posting.=20 Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of DMC197807 Sent: Tuesday, August 12, 2003 10:27 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] elder and triple screens Question for you, Katherine, Do you have an official title here, or are you just a poster like = the rest? Put another way, are you an official threadmom, or a = volunteer? DMc ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 12, 2003 7:39 AM Subject: RE: [CANSLIM] elder and triple screens DMC, Here we respectfully recognize WON as the person who put us on = this specific investing track. He is one of many of our teachers. = Respect and idolatry are very different. As I suggested, there are many aspects of trading. Some of the = folks here are extremely new to CANSLIM. They struggle with the simplest = aspects of the methodology including reading simple price/volume action = in a chart, spotting rises and bases, support and resistence, etc. They = struggle with understanding the difference between an EPS rank and EPS = quarter over quarter. They struggle with understanding the difference = between an RSLine and and RSRank. They struggle with understanding how = to go about finding stocks for their watchlist using CANSLIM parameters. = As all of us were beginners at one time, the beauty of a list like this = is that it provides a safe environmnent where one can come and ask = questions and those who've been there can help. I wish the list had been = here when I was a beginning CANSLIMer. It would have saved me a boatload = of mistakes (and tuition). Others are not new to CANSLIM, they have the basics under control, = but they still struggle with sell rules. They might be struggling with = determining which are the key elements of mining for stocks, which = order of importance to place on them, etc. They have built a personal = knowledgebase built on years and years of trading in the CANSLIM style = and know where minefields and pitfalls tend to be, but low and behold = discover new ones in a Bear Market. They question their own assumptions, = they ask for help, they pose questions as to whether the underlying = assumptions are still valid. They share their experiences with trading = this particular methodology. And without a doubt they read and study = each and every day. They may start with 20 pages in HTMMIS, but their = libraries are filled with books on market cycles, technical analysis, = value investing, growth investing, mechanical systems, market history, = etc. But they come here to discuss CANSLIM and share their experiences = with CANSLIM investing based on what they've learned. Stay on track. There are nearly 800 voices on the list. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of DMC197807 Sent: Tuesday, August 12, 2003 9:17 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] elder and triple screens Katherine & Jeff, First, I would agree with Katherine that a detailed discussion = of what settings to use on different oscillators is afield from the = purpose of the board. I'd suggest you scope out the Silicon Investor = sites as a starting point: http://www.siliconinvestor.com/stocktalk/sub_hot.gsp As for generalized discussions of how to read charts, etc., what = kinds of time-frames to look at, etc., I think that's what makes a good = investor no matter what the approach. It is an absolutely vital part of = making a keeping profits. In this approach, where you basically sit = down with a scanning program that can spit out 10-12 names per day, it = is vital to develop one's own discipline and chart reading ability. = Also, it's key to understand Gann, Fibonacci, Elliot, etc. if only to = keep slick talk and slick reasoning from an extraneous source from = pushing you into a speculative position with little else to support it. Sometimes this thread reminds me of the church, where you want = to ground your reasons in scripture. (Holy Moly, we actually had a sighting--was it an epiphany?-on = Kudlow and Cramer last night of the Great One, the one who goes by His = Initials, His Nibs, WON. I hope all the true believers tuned in for the = sound bites). Hokay, so, let me just cite pages 44-78 and 160-180 in HTMMIS as = the basis for maintaining a broad interest in macro and micro charts and = differing approaches. What's almost laughable is the title of chapter = 15: "How to Read Charts Like an Expert . . ." In only 20 pages! =20 Jeff, in response to your original question, as a general = matter, it is always best to look across time frames for confirmation = that what you're looking at is what you're looking at. If the micro = trend (hourly) is good and the daily looks great, don't forget to check = the weekly before you commit. That is the gist (and the takeaway) of = Elder, at least to me. The most comprehensive treatment of triple = screening technique (btw, you can get free triple screens on one page by = using Stockcharts' gallery views) is Farley's "Master Swing Trader." = Not a recommendation quite yet but if you stumbled over a copy it might = be worth it to read a few chapters. When you're wondering if you should sell, again you need to = check not only the daily price action but how it all fits into the = weekly or monthly charts. In the list of books I posted before was = Murphy's basic text: that will give you a good grounding in many, many = topics. DMC ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, August 12, 2003 6:22 AM Subject: RE: [CANSLIM] elder and triple screens Hi Jeff and DMC, I feel that I need to speak up here. While I understand that there are many aspects to trading and = that there are many that can influence and/or be used in CANSLIM = investing, Elder triple screens, Elliott Wave theory, etc., have nothing = to do with CANSLIM. Let's stay on course so that the folks who are here for a = particular discussion and purpose, CANSLIM, are getting what they expect = when they come here. I wouldn't go to a 5 star French restaurant for a = fast food burger. I wouldn't expect to come to a CANSLIM list for broad = trading discussions. Focus, simplicity, disclipline and a deep knowledge of the = trading methodology are the hallmarks of Master Traders. Our purpose as = members of this list is to develop that mastery. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Jeff Henderson Sent: Tuesday, August 12, 2003 2:13 AM To: canslim@lists.xmission.com Subject: [CANSLIM] elder and triple screens =20 DMC, =20 Thank you for the book recommendations! I just read Trading = For a Living and thought is was really informative. I love his themes = and dry humor on trading "losers", alcoholics and other psychological = dysfunctions. I loved what he said about treating trading psychological = problems like you're in AA, "Good morning, my name is Alex and I am a = loser. I have it in me to do serious financial damage to my account." = LOL =20 Anyway, I have a question regarding his triple screens = trading. Has anybody used this technical analysis before, and if you = have, did you find that one of the oscillators works better than the = others? I'm using a fast 5 day stochastic, but I think he really = suggests his very own Force Index and Elder-Ray. I was also thinking of = adjusting his recommended stop losses to compensate for possible = whipsawing. Any suggestions? I was thinking of a moving exit using 1.2 = times the 10 day ADR and possibly switching over to the parabolic system = during a runaway trend. =20 Thanks, Jeff H. =20 --Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Fred Richards Sent: Monday, August 11, 2003 8:05 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] a random thought =20 Katherine is quite correct about using the A/D to help = identify stocks to consider and possibly add to one's portfolio. I rely = on setting up an alert and/or stop loss point using a trailing stop to = protect my position profits. Then, if we get stopped out of a position, = we consider re-buying the position when the stock regains the stop loss = point if the basic fundamentals and other technical aspects remain = within our overall criteria. If not, we pass on re-buying. =20 -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm Sent: Monday, August 11, 2003 7:43 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] a random thought Hi Jeff, =20 In my experience, the A/D is a decent tool when buying = into a long position (limiting buys to A, B or C) but it's a lousy = indicator of tops. I remember in the March of 2000 that all the top = stocks still had an "A" rating long after they'd crashed off their tops. = The 13 weeks included in the indicator makes is a lagging indicator in = my mind, too slow to catch the very near term price action in a stock = that often triggers sell rules. =20 The IBD says they don't see it as a lagging indicator and = that it is one of their "fastest." Faster? Yes, faster than RS (52 = weeks) or GRS (26 weeks), but not "non-lagging" in my opinion. =20 Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Jeff Henderson Sent: Monday, August 11, 2003 6:27 AM To: Canslim Subject: [CANSLIM] a random thought I was thinking that accumulation/distributor indicator = seems to be a valuable tool if there is a lot (for lack of a better = term) of institutional sponsorship. What do y'all think? =20 =20 Jeff H. - ------=_NextPart_000_018A_01C360B6.29429690 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Message=
Katherine,
 
I always try to ask fair = questions.  Sorry to=20 hear about Tom, before my time unfortunately.
 
I agree a detailed discussion of = Elder's triple=20 screen technique (although it's just 8 short pages in his book) is not = something=20 people want to get bogged down in, but I am curious what the thread is = willing=20 to get bogged down in.  For example, we had 10 or 11 posts this = morning on=20 streaming quotes (un-citable in my New Testament, er, HTMMIS).  I = would=20 think a few notes on multi-time frame analysis of charts could be quite=20 valuable, but that's just me.  I didn't mind giving Jeff a little = guidance=20 about the subject, maybe one or more of the 800 "voices" out there (that = would=20 be 1600 ears, as well as 1600 eyes, except for those hearing or sight = impaired,=20 but I digress . . .) never heard or just heard a little about 3-D = (Farley) or=20 triple screen (Elder) investing and would like a clue as to what it is = and what=20 it means.
 
A mention of a stock always solicits an = opinion,=20 but as a stock-generating medium I think it's very flawed.  First = of all=20 there's the pump & dump worry (poster X buys ABC stock and then puts = out=20 bullish "analysis" throughout the cyberworld), 2nd of all, if you didn't = generate the idea for the stock and make the purchase decision, then for = damn=20 sure you won't know when or how to get out of it.
 
So, the main function of the thread is = to be=20 educational, to exchange ideas (and humor!), keep it light and = informative and=20 not pedantic or dreary or oppressive.  I was a little sorry to see = Mark=20 Crisp (was that his name) driven from the thread, although I recognized = that he=20 shared the blame.  In any event, I think you need a little fresh = air here=20 (that's what Gene called me) and a little iconoclastic skepticism, even = about=20 Milscan and His Nibs, WON.
 
DMC
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Tuesday, August 12, 2003 = 9:00=20 AM
Subject: RE: [CANSLIM] elder = and triple=20 screens

Hi DMC,
 
A fair question. I stay in close = contact=20 with our list owner, Jeff Salisbury. However, I am a volunteer as is = everybody=20 on the list and I do not speak for Jeff.  Before you arrived, Tom = Worley,=20 who you may have seen mentioned here, was a long time member of = the list=20 and the defacto "glue." But Tom was also a volunteer with no official = title.=20 We lost him to a tragic accident the end of April.
 
A fresh point of view from = anybody is=20 always welcome, but we just need to be sure that we don't get too far = afield.=20 A singular focused topic, CANSLIM investing, has allowed us to = stay an=20 active and civil list for over 10 years. People know they can = come here=20 and talk CANSLIM. CANSLIM has many aspects, the methodology itself, = money=20 management, trading psychology, buy rules, sell rules, reading charts, = interpreting fundamentals, reading the Market direction,=20 software/tools/services in support of the methodology/trading and = more,=20 including "advanced" topics such as shorting, reading trend lines,=20 etc. Those topics alone can keep us busy for a lifetime. =
 
Something like Elder triple=20 screens is just too far off track. There are thousands of lists devoted to = more general=20 aspects of trading, to other investment styles, trading time frames, = etc. The=20 main idea is to just move those kinds of discussions to their = approriate=20 location.
 
All we ask of our members is to = stay on=20 topic and be respectful of each other when posting.
 
Katherine
 
 
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 DMC197807
Sent: Tuesday, August 12, 2003 10:27=20 AM
To: canslim@lists.xmission.com
Subject: Re: = [CANSLIM]=20 elder and triple screens

Question for you, = Katherine,
 
Do you have an official title here, = or are you=20 just a poster like the rest?  Put another way, are you an = official=20 threadmom, or a volunteer?
 
DMc
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Tuesday, August 12, = 2003 7:39=20 AM
Subject: RE: [CANSLIM] = elder and=20 triple screens

DMC,
 
Here we  respectfully = recognize=20 WON as the person who put us on this specific investing track. He = is one=20 of many of our teachers. Respect and idolatry are very=20 different.
 
As I suggested, there are = many aspects=20 of trading. Some of the folks here are extremely new to CANSLIM. = They=20 struggle with the simplest aspects of the methodology including = reading=20 simple price/volume action in a chart, spotting rises and bases, = support=20 and resistence, etc. They struggle with understanding the = difference=20 between an EPS rank and EPS quarter over quarter. They struggle = with=20 understanding the difference between an RSLine and and RSRank. = They=20 struggle with understanding how to go about finding stocks for = their=20 watchlist using CANSLIM parameters. As all of us were beginners at = one=20 time, the beauty of a list like this is that it provides a safe=20 environmnent where one can come and ask questions and those who've = been=20 there can help. I wish the list had been here when I was a = beginning=20 CANSLIMer. It would have saved me a boatload of mistakes (and=20 tuition).
 
Others are not new to = CANSLIM, they=20 have the basics under control, but they still struggle with sell = rules.=20 They might be struggling with determining which are the key = elements=20 of  mining for stocks, which order of importance to place on = them,=20 etc. They have built a personal knowledgebase built on years and = years of=20 trading in the CANSLIM style and know where minefields and = pitfalls tend=20 to be, but low and behold discover new ones in a Bear Market. They = question their own assumptions, they ask for help, they pose = questions as=20 to whether the underlying assumptions are still valid. They share = their=20 experiences with trading this particular methodology. And without = a doubt=20 they read and study each and every day. They may start with 20 = pages in=20 HTMMIS, but their libraries are filled with books on market = cycles,=20 technical analysis, value investing, growth investing, mechanical=20 systems,  market history, etc.
 
But they come here to = discuss CANSLIM=20 and share their experiences with CANSLIM investing based on what = they've=20 learned.
 
Stay on track. There = are=20 nearly 800 voices on the list.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 DMC197807
Sent: Tuesday, August 12, 2003 9:17=20 AM
To: canslim@lists.xmission.com
Subject: = Re:=20 [CANSLIM] elder and triple screens

Katherine & = Jeff,
 
First, I would agree with = Katherine that a=20 detailed discussion of what settings to use on different = oscillators is=20 afield from the purpose of the board.  I'd suggest you = scope out=20 the Silicon Investor sites as a starting point:
 
http://www.= siliconinvestor.com/stocktalk/sub_hot.gsp
 
As for generalized discussions = of how to=20 read charts, etc., what kinds of time-frames to look at, etc., I = think=20 that's what makes a good investor no matter what the = approach.  It=20 is an absolutely vital part of making a keeping profits.  = In this=20 approach, where you basically sit down with a scanning program = that can=20 spit out 10-12 names per day, it is vital to develop one's own=20 discipline and chart reading ability.  Also, it's key to = understand=20 Gann, Fibonacci, Elliot, etc. if only to keep slick talk and = slick=20 reasoning from an extraneous source from pushing you into a = speculative=20 position with little else to support it.
 
Sometimes this thread reminds = me of the=20 church, where you want to ground your reasons in = scripture.
 
(Holy Moly, we actually had a = sighting--was=20 it an epiphany?-on Kudlow and Cramer last night of the Great = One, the=20 one who goes by His Initials, His Nibs, WON.  I hope all = the true=20 believers tuned in for the sound bites).
 
Hokay, so, let me just cite = pages 44-78 and=20 160-180 in HTMMIS as the basis for maintaining a broad interest = in macro=20 and micro charts and differing approaches.  What's almost = laughable=20 is the title of chapter 15:  "How to Read Charts Like an = Expert . .=20 ."
 
In only 20 pages!  =
 
Jeff, in response to your = original=20 question, as a general matter, it is always best to look across = time=20 frames for confirmation that what you're looking at is what = you're=20 looking at.  If the micro trend (hourly) is good and the = daily=20 looks great, don't forget to check the weekly before you = commit. =20 That is the gist (and the takeaway) of Elder, at least to = me.  The=20 most comprehensive treatment of triple screening technique (btw, = you can=20 get free triple screens on one page by using Stockcharts' = gallery views)=20 is Farley's "Master Swing Trader."  Not a recommendation = quite yet=20 but if you stumbled over a copy it might be worth it to read a = few=20 chapters.
 
When you're wondering if you = should sell,=20 again you need to check not only the daily price action but how = it all=20 fits into the weekly or monthly charts.  In the list of = books I=20 posted before was Murphy's basic text:  that will give you = a good=20 grounding in many, many topics.
 
DMC
 
----- Original Message ----- =
From:=20 Katherine Malm
To: canslim@lists.xmission.com= =20
Sent: Tuesday, August = 12, 2003=20 6:22 AM
Subject: RE: [CANSLIM] = elder and=20 triple screens

Hi Jeff and = DMC,
 
I feel that I need to = speak up=20 here.
 
While I understand that = there are=20 many aspects to trading and that there are many that can = influence=20 and/or be used in CANSLIM investing, Elder triple screens, = Elliott=20 Wave theory, etc., have nothing to do with = CANSLIM.
 
Let's stay on course so = that the=20 folks who are here for a particular discussion and purpose, = CANSLIM,=20 are getting what they expect when they come here. I wouldn't = go to a 5=20 star French restaurant for a fast food burger. I wouldn't = expect to=20 come to a CANSLIM list for broad trading = discussions.
 
Focus, simplicity, = disclipline and=20 a deep knowledge of the trading methodology are the=20 hallmarks of Master Traders. Our purpose as members of this = list is to=20 develop that mastery.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Jeff=20 Henderson
Sent: Tuesday, August 12, 2003 2:13=20 AM
To: = canslim@lists.xmission.com
Subject:=20 [CANSLIM] elder and triple screens

 

DMC,

 

Thank you=20 for the book recommendations! =20 I just read Trading For = a=20 Living and thought is was really informative.  I love his themes = and dry=20 humor on trading =93losers=94, alcoholics and other = psychological=20 dysfunctions.  = I loved=20 what he said about treating trading psychological problems = like=20 you=92re in AA, =93Good morning, my name is Alex and I am a = loser.  I have it in me to = do serious=20 financial damage to my account.=94 = LOL

 

Anyway, I=20 have a question regarding his triple screens trading.  Has anybody used = this=20 technical analysis before, and if you have, did you find = that one of=20 the oscillators works better than the others?  I=92m using a fast = 5 day=20 stochastic, but I think he really suggests his very own = Force Index=20 and Elder-Ray.  = I was=20 also thinking of adjusting his recommended stop losses to = compensate=20 for possible whipsawing.  Any=20 suggestions?  = I=20 was thinking of a moving exit using 1.2 times the 10 day ADR = and=20 possibly switching over to the parabolic system during a = runaway=20 trend.

 

Thanks,

Jeff=20 H.

 

--Original=20 Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com] On Behalf Of Fred=20 Richards
Sent:=20 Monday, = August 11,=20 2003=20 8:05=20 AM
To:=20 canslim@lists.xmission.com
Subject: RE: = [CANSLIM] a random=20 thought

 

Katherine=20 is quite correct about using the A/D to help identify stocks = to=20 consider and possibly add to one's portfolio.  I rely = on=20 setting up an alert and/or stop loss point using a trailing = stop to=20 protect my position profits.  Then, if we get stopped = out of a=20 position, we consider re-buying the position when the stock = regains=20 the stop loss point if the basic fundamentals and other = technical=20 aspects remain within our overall criteria.  If not, we = pass on=20 re-buying.

 

-----Original=20 Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com] On Behalf Of = Katherine=20 Malm
Sent:=20 Monday, = August 11,=20 2003=20 7:43=20 AM
To:=20 canslim@lists.xmission.com
Subject: RE: = [CANSLIM] a=20 random thought

Hi=20 Jeff,

 

In my=20 experience, the A/D is a decent tool when buying into a = long=20 position (limiting buys to A, B or C) but it's a lousy = indicator=20 of tops. I remember in the March of 2000 that all = the top=20 stocks still had an "A" rating long after they'd crashed = off their=20 tops. The 13 weeks included in the indicator makes is a = lagging=20 indicator in my mind, too slow to catch the very near term = price=20 action in a stock that often triggers sell=20 rules.

 

The=20 IBD says they don't see it as a lagging indicator and that = it is=20 one of their "fastest." Faster? Yes, faster than RS (52 = weeks) or=20 GRS (26 weeks), but not "non-lagging" in my=20 opinion.

 

Katherine

-----Original=20 Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Jeff = Henderson
Sent:=20 Monday, = August 11,=20 2003=20 6:27=20 AM
To: = Canslim
Subject: = [CANSLIM] a random=20 thought

I was=20 thinking that accumulation/distributor indicator seems = to be a=20 valuable tool if there is a lot (for lack of a better = term) of=20 institutional sponsorship. =20 What do y=92all think? =20

 

Jeff=20 = H.

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