From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #590 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 Wednesday, April 28 1999 Volume 02 : Number 590 In this issue: RE: [CANSLIM] NASDAQ rising to new high on falling volume [CANSLIM] On Volume and New Highs [CANSLIM] Length of Chart Time [CANSLIM] DG Re: [CANSLIM] NASDAQ rising to new high on falling volume Re: [CANSLIM] DG RE: [CANSLIM] DG Re: [CANSLIM] DG RE: [CANSLIM] DG [CANSLIM] David Ryan Comments on CBS Marketwatch ---------------------------------------------------------------------- Date: Tue, 27 Apr 1999 02:26:00 -0700 From: "mikelu" Subject: RE: [CANSLIM] NASDAQ rising to new high on falling volume Last week did show declining volume following the huge volume of the previous two weeks, but I don't know how to interpret volume around these big spikes. At least Monday's volume was above Friday's. Mike - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Luke Lang Sent: Monday, April 26, 1999 11:27 PM To: Canslim Canslim Subject: [CANSLIM] NASDAQ rising to new high on falling volume I just noticed this happening over the last week. I also noticed the lack of posting today. Is the server down or is this list quiet near market tops? Is anyone concerned about the subject matter? Do you have any suggestions as to what to look for in the near future? Thanks. Best regards, Luke Lang _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - - - ------------------------------ Date: Tue, 27 Apr 1999 06:40:52 -0400 From: "Tom Worley" Subject: [CANSLIM] On Volume and New Highs I took a quick look around at the past 16 trading days volume. Noted that on Nasdaq all 16 days exceeded daily average. On NYSE it was 12 of those 16 days, and on R2000 it was 15 out of 16. I also took a look at the "quality" of that volume. For the past week, up vol on Naz has been steady at high levels, while down vol has been dropping. Shows me that fresh money is pouring in, the volume is not just coming from selling one stock for another. On NYSE, the past week shows up vol declining, while down vol increasing. Just the reverse of Naz, and suggests to me money is already rotating out of the cyclicals and into techs. Since more cyclicals and fewer techs are NYSE listed, and just the reverse on Naz, this theory supports the pattern on Naz of fresh money coming in. On both NYSE and Naz, the mkt is currently significantly overbot, more so on NYSE. When volume is consistently running well over daily average, one's days comparison to another loses a lot of its significance for me. Shouldn't be ignored, but I try to watch the trends more, and the daily activities less. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - - ------------------------------ Date: Tue, 27 Apr 1999 06:31:42 -0500 (CDT) From: mckeen@ix.netcom.com Subject: [CANSLIM] Length of Chart Time Hi Tom and Dave, Thanks for sharing your approaches to reading charts. Very valuable. Regards, Mary - - ------------------------------ Date: Tue, 27 Apr 1999 08:37:39 -0400 From: "David Barash" Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - ------------------------------ Date: Tue, 27 Apr 1999 09:44:01 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] NASDAQ rising to new high on falling volume Luke, As you will recall some of us on the list raised cash a week or two ago. Last week (04/20) the NASDAQ reversed and never looked back. That was a pretty impressive bounce IMO! If one started counting for the 1% on volume day again (which one most probably shouldn't have to look for as the old signal has not been violated yet), then yesterday (04/26) was a buy signal, i.e. time to look for stocks that emerge for a solid base. The NAZ is now near the upper Bollinger band, typically a place to a least take a rest. At 11:26 PM 26/04/99 -0700, you wrote: >I just noticed this happening over the last week. I also noticed the >lack of posting today. Is the server down or is this list quiet near >market tops? Is anyone concerned about the subject matter? Do you >have any suggestions as to what to look for in the near future? Thanks. > >Best regards, >Luke Lang > > > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > >- > > - -- Johan Van Houtven - - ------------------------------ Date: Tue, 27 Apr 1999 23:05:46 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - ------------------------------ Date: Tue, 27 Apr 1999 23:43:22 -0400 From: "David Barash" Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - ------------------------------ Date: Wed, 28 Apr 1999 00:41:07 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DG David, Let me repeat, a one day, 10% spike in my opinion constitutes nothing but a one day, 10% spike. Looking at a one year chart, I can see your hopes for a cup and handle here. But for me personally, the pattern, esp in what you want to consider a handle, or a right side of cup with handle forming, is just too volatile. To count this chart as a c&h, you have got to use most of an entire one year chart, for me that's simply too long a time period. That's not saying it's not a cup and possible handle, just that I place little confidence in this type of pattern needing so long a time period to form. It looks to me more like a dog of the retail group being dragged upwards by the rest of the group. If you already own it, I hope for your sake I am proven wrong. But today's spike looks to me simply like that, a spike. I would place no bets on whether or not it lasts. It would not be, for me, and entry signal. Nor, if I owned it already, necessarily a signal to sell. It is ambiguous, but doesn't affirm any valid chart pattern by itself. The only positive signal I could infer is that the past week of trading finally touched the 50 dma, and the spike took off from there. And the spike occurred on the second day of above avg volume. Next earnings (Q1) are due 5/12, maybe somebody's reading something into how the first qtr went. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 11:43 PM Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - - - ------------------------------ Date: Wed, 28 Apr 1999 00:53:08 -0400 From: "David Barash" Subject: RE: [CANSLIM] DG Thanks, Tom. I'm just beginning to try to figure this out. I appreciate your helpfulness and honesty. What do you think of HH? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Wednesday, April 28, 1999 12:41 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG David, Let me repeat, a one day, 10% spike in my opinion constitutes nothing but a one day, 10% spike. Looking at a one year chart, I can see your hopes for a cup and handle here. But for me personally, the pattern, esp in what you want to consider a handle, or a right side of cup with handle forming, is just too volatile. To count this chart as a c&h, you have got to use most of an entire one year chart, for me that's simply too long a time period. That's not saying it's not a cup and possible handle, just that I place little confidence in this type of pattern needing so long a time period to form. It looks to me more like a dog of the retail group being dragged upwards by the rest of the group. If you already own it, I hope for your sake I am proven wrong. But today's spike looks to me simply like that, a spike. I would place no bets on whether or not it lasts. It would not be, for me, and entry signal. Nor, if I owned it already, necessarily a signal to sell. It is ambiguous, but doesn't affirm any valid chart pattern by itself. The only positive signal I could infer is that the past week of trading finally touched the 50 dma, and the spike took off from there. And the spike occurred on the second day of above avg volume. Next earnings (Q1) are due 5/12, maybe somebody's reading something into how the first qtr went. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 11:43 PM Subject: RE: [CANSLIM] DG Would you consider that we've now formed the base of a cup and today's action is the right side of the cup with a handle to come? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, April 27, 1999 11:06 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DG Hi David, As much as I tried to stretch my imagination, using DGO to study DG (nice twist on initials, huh?), I couldn't see a cup and handle. If you are referring to the period since late Feb as a "handle", my comments would be that it's been too long a period, and too rough (volatile) to consider as any handle. It's also been trending up. As for today's performance, I see a 10% spike on 2X ADV. Don't know if there was any news to account for such a strong move, but the retailers have been showing strength. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: David Barash To: canslim@lists.xmission.com Date: Tuesday, April 27, 1999 8:37 AM Subject: [CANSLIM] DG Any opinions on DG today? Looks like it's making a handle and touching the 50 MA. David Barash dbarash@massmed.org - - - - - - - - - - ------------------------------ Date: Tue, 27 Apr 1999 20:21:27 EDT From: PPNewell@aol.com Subject: [CANSLIM] David Ryan Comments on CBS Marketwatch Interesting: One player voiced concern with the technical health of the Nasdaq's five-day rally. "Any time something drops on heavier volume and rallies on lighter volume you've got to question whether maybe we've gone a little too far and we need to pull back," said David Ryan, president of Ryan Capital Management. Ryan noted that "you had huge volume down off the April 13-14 high. The Nasdaq came down on 1.3 billion shares and then the next day it was 1.4 billion shares. After that, the market fell for four more days before rallying for five days. "But the rally has been on lighter volume each day and it's been on volume lighter than in three of the four selloff days from April 13 to April 19." Tuesday's market action hewed to a recent trend in which leadership emanates from either the technology sector or the cyclical sector, but not both. Within the cyclical area, basic resource groups like the aluminums, steels, chemicals, and oils acted well. Last week, the shares traded sideways in quieter dealings after breaking out of trading ranges on big volume the prior week. The catalyst for the recent strength has been optimism that global economic growth will pick up in the second half of 1999 and in 2000. Peter Newell - - ------------------------------ End of canslim-digest V2 #590 ***************************** 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.