From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #426 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 Saturday, October 31 1998 Volume 02 : Number 426 In this issue: [CANSLIM] MU & OBV/MF [Connie] Re: [CANSLIM] MU & OBV/MF [Connie] [CANSLIM] Distribution [CANSLIM] VIX [CANSLIM] WMT is completing a cup and handle. Re: [CANSLIM] MU & OBV/MF [Connie] [CANSLIM] Death of an egroup? Re: [CANSLIM] MU & OBV/MF [Connie] [CANSLIM] Economics 101 [CANSLIM] Buying SEIC Re: [CANSLIM] MU & OBV/MF [Connie] [CANSLIM] Some thoughts ---------------------------------------------------------------------- Date: Fri, 30 Oct 1998 09:02:56 -0500 From: Connie Mack Rea Subject: [CANSLIM] MU & OBV/MF [Connie] Were you to have nibbled at MU in any of the last few days, you are sitting very pretty this morning. I am still trading nothing but MU. AMD probably still has some juice left; it acted well yesterday. I have cleared all my positions as of yesterday's close. I will consider re-entry positions this morning. MU has had quite a run. You must be especially careful at this new high. If you wish to trade, you might apply my 3/7/10 EMA to a 10-minute price chart. If you will check its application the last few days, you will see that this iconoclastic application would have made you quite a bit of money. To see how different applications of the EMA work, put it to 1-minute and 5-minute price charts. The best intraday indicator [not for buying or selling entry] is watching a Time/Price/Volume chart. Choose a block size arbitrarily of, say, 25,000 or so. With MU, you can use 50,000 or even higher. I have used both market and limit orders. Even when MU is trading several million shares, you can still get aberrant market fills. Ordinarily, you can trade on a 1/16th or 1/8th spread. These are OBV/MF stocks from this morning's scan: RDT JM MCH PHBK ARDT CALGL RSYS NCSS I will not be buying any of these. Connie - - ------------------------------ Date: Fri, 30 Oct 1998 07:35:43 -0800 From: Talib Hirji Subject: Re: [CANSLIM] MU & OBV/MF [Connie] Connie, First of let me tell you, that your posts are very educational and I have learned a lot from your contribution on this board. I am trying to use and understand real-time data with interquote and its advantage. Your undernoted statement is not clear. I am looking at time & sales Data with tick. How do you know, if the block is a sell or buy? And can you eloborate more on your undernoted statement. Thank You, Talib At 09:02 AM 10/30/98 -0500, you wrote: > >The best intraday indicator [not for buying or selling entry] is >watching a Time/Price/Volume chart. Choose a block size arbitrarily of, >say, 25,000 or so. With MU, you can use 50,000 or even higher. > >Connie > > > > >- > > - - ------------------------------ Date: Fri, 30 Oct 98 12:09:500 -0500 From: Jeffry White Subject: [CANSLIM] Distribution Db wrote: "Selling into strength, detectable in part by high volume with little upside and compression of the bar and, as O'N says, missed by most. A retreat on high volume is ordinary selling, detectable by everyone." WON calls both "distribution" provided the volume is higher than the prior day's trade, although there are other requirements you've not mentioned in your definitions. Why have you qualified "selling" into "ordinary selling" and "distribution"? Must there be a multiday high within either of the days, or simply the action of the "bar"? How many of your "distribution" days occurred before the market turns in April/May and mid-July, and how many were there in the failed rally attempts in mid-August and late September? Thanks. JW - - ------------------------------ Date: Fri, 30 Oct 1998 09:49:25 -0800 (PST) From: rolatzi Subject: [CANSLIM] VIX The Vis has dropped steadily over the last few weeks and now stands at 26.4 The minimum that it hit prior to the last "bear market" was around 18 last July and peaked out around 50 near Sep 1 and once again at the begining of October. As a reminder low cap stocks do well when the VIX is low. I am not making a prediction but the cusp of the month is statistically the best time for increasing stock value. From the last trading day of the month to the fifth trading day of the next month the market averages up while for the rest of the month it averages down. This data is a number of years old and it would be of interest to test if it still holds. My guess is that it still is good because of the monthly schedule of transfers to institutional retirement accounts. Ciao, Rolatzi _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 30 Oct 1998 10:04:42 -0800 (PST) From: rolatzi Subject: [CANSLIM] WMT is completing a cup and handle. That's all folks. _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 30 Oct 1998 11:10:18 -0500 From: Connie Mack Rea Subject: Re: [CANSLIM] MU & OBV/MF [Connie] Morning Talib-- Sorry if I was not clear. Am not sure but you seem to have joined up Tick and Time/Sales/Volume. I hope I did not say that I used Tick and TSV as a trading indicator. I keep these indicators separate but have put a 3/7/10 EMA to it--without significance. On the TSV chart, you can, e.g., look at a block trade [50,000 is a useful size]. If the block trade is 39 at 50,000 shares, you look at the preceding sale of whatever size. If the preceding sale is 38.75, the sale is considered a buy. Some traders do not look at the preceding sale, but go back until they find the previous block trade. The TSV indicator [it is only imprecisely an indicator] is a gross indicator that gives an intraday trend. The timing for buying or selling is extracted from the application of the 3/7/10 EMA applied to the 10-minute price chart. Occasionally, I trade from the 5-minute and 1-minute price chart. You can infer that these latter two are rocket indicators that can jerk you around unmercifully. Let me know if you've further questions. Connie Talib Hirji wrote: > Connie, > > First of let me tell you, that your posts are very educational and I have > learned a lot from your contribution on this board. > > I am trying to use and understand real-time data with interquote and its > advantage. > Your undernoted statement is not clear. I am looking at time & sales Data > with tick. How do you know, if the block is a sell or buy? And can you > eloborate more on your undernoted statement. > > Thank You, > > Talib > > At 09:02 AM 10/30/98 -0500, you wrote: > > > > >The best intraday indicator [not for buying or selling entry] is > >watching a Time/Price/Volume chart. Choose a block size arbitrarily of, > >say, 25,000 or so. With MU, you can use 50,000 or even higher. > > > >Connie > > > > > > > > > >- > > > > > > - - - ------------------------------ Date: 30 Oct 1998 17:46:06 -0000 From: "Ardem Michael Kiledjian" Subject: [CANSLIM] Death of an egroup? Is this group active, dormant, or dead? ... or is it just the market thats got everyone for a lose of words ? - ----- Free e-mail group hosting at http://www.eGroups.com/ - - ------------------------------ Date: Fri, 30 Oct 1998 21:32:10 -0600 From: "John Adair, M.D." Subject: Re: [CANSLIM] MU & OBV/MF [Connie] Connie Hello, Are you using the real time data. John Connie Mack Rea wrote: > Were you to have nibbled at MU in any of the last few days, you are > sitting very pretty this morning. > > I am still trading nothing but MU. > > AMD probably still has some juice left; it acted well yesterday. > > I have cleared all my positions as of yesterday's close. I will > consider re-entry positions this morning. MU has had quite a run. You > must be especially careful at this new high. > > If you wish to trade, you might apply my 3/7/10 EMA to a 10-minute price > chart. If you will check its application the last few days, you will > see that this iconoclastic application would have made you quite a bit > of money. > > To see how different applications of the EMA work, put it to 1-minute > and 5-minute price charts. > > The best intraday indicator [not for buying or selling entry] is > watching a Time/Price/Volume chart. Choose a block size arbitrarily of, > say, 25,000 or so. With MU, you can use 50,000 or even higher. > > I have used both market and limit orders. Even when MU is trading > several million shares, you can still get aberrant market fills. > Ordinarily, you can trade on a 1/16th or 1/8th spread. > > These are OBV/MF stocks from this morning's scan: > > RDT JM MCH PHBK ARDT CALGL RSYS NCSS > > I will not be buying any of these. > > Connie > > - - - ------------------------------ Date: Sat, 31 Oct 1998 00:05:27 -0500 From: "Tom Worley" Subject: [CANSLIM] Economics 101 For those that follow the economics reports, and what they may portend for the next six months or so, take note of today's Chicago Purchasing Manager's Index numbers. This report is widely considered a precursor of what the Nat'l PM report will look like. And today, Chicago reported 48.1, a definite contractual number. Last month they reported 55.2, down from some recent months but still a strong expansion number. And the "forecast/expectation" was for a report of 52.0, thus today's number is not only suggesting a continued contraction of the economy in the nation's "breadbasket", it is also sharply lower than expectations. The mkt reacted to the preliminary overall Q3 GDP, which soundly beat expectations without becoming excessively inflationary. And the recent, and likely future, rate cuts may well spark economic activity in the Chicago region and nationally such that this report for October may prove to be the exception for Q4. Only time will tell. But also note the past several months reports on New Home sales, Existing Home sales, Building permits, etc. All have continued in a steady downtrend, granted from some pretty high levels. But this has been in an environment of expectation of rate cuts, actual rate cuts, and expectations of further rate cuts. Worth noting that human psychology during times of rate cuts is to hold off locking in a rate (the greed syndrome) in hopes of rates falling even further. The mass rush to lock in a home loan doesn't typically occur until rates start going back up. Thus, as long as rate cuts continue, or at least the expectation of such continues, the housing sector is likely to continue slipping. Tom W - - ------------------------------ Date: Sat, 31 Oct 1998 19:22:40 +0700 From: "Peter D. Christiansen" Subject: [CANSLIM] Buying SEIC In addition to MACR, I also bought SEIC on a strong confirmation of its breakout. - -- Peter Christiansen Chiang Mai - Thailand peterc@loxinfo.co.th - - ------------------------------ Date: Sat, 31 Oct 1998 06:11:02 -0500 From: Connie Mack Rea Subject: Re: [CANSLIM] MU & OBV/MF [Connie] Morning John-- I am using real time data. Connie John Adair, M.D. wrote: > Connie Hello, > Are you using the real time data. > John > > Connie Mack Rea wrote: > > > Were you to have nibbled at MU in any of the last few days, you are > > sitting very pretty this morning. > > > > I am still trading nothing but MU. > > > > AMD probably still has some juice left; it acted well yesterday. > > > > I have cleared all my positions as of yesterday's close. I will > > consider re-entry positions this morning. MU has had quite a run. You > > must be especially careful at this new high. > > > > If you wish to trade, you might apply my 3/7/10 EMA to a 10-minute price > > chart. If you will check its application the last few days, you will > > see that this iconoclastic application would have made you quite a bit > > of money. > > > > To see how different applications of the EMA work, put it to 1-minute > > and 5-minute price charts. > > > > The best intraday indicator [not for buying or selling entry] is > > watching a Time/Price/Volume chart. Choose a block size arbitrarily of, > > say, 25,000 or so. With MU, you can use 50,000 or even higher. > > > > I have used both market and limit orders. Even when MU is trading > > several million shares, you can still get aberrant market fills. > > Ordinarily, you can trade on a 1/16th or 1/8th spread. > > > > These are OBV/MF stocks from this morning's scan: > > > > RDT JM MCH PHBK ARDT CALGL RSYS NCSS > > > > I will not be buying any of these. > > > > Connie > > > > - > > - - - ------------------------------ Date: Sat, 31 Oct 1998 10:25:52 -0500 From: "Tom Worley" Subject: [CANSLIM] Some thoughts Anyone notice that the 10 day moving average of new highs to new lows on NYSE finally crossed positive?? Not by much, granted, but a positive sign of the recovery. After swinging into bear territory so sharply, this has been a swift recovery. And how about NASDAQ maintaining such a high level of overbought for so long. Impressive! And October, traditionally a bad month, turns out to be one of the best months in ages. The list of new highs for the week at DGO totals 136, will try to look at some charts later and see if anything looks constructive. Tom W - - ------------------------------ End of canslim-digest V2 #426 ***************************** 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.