From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #696 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, September 8 1999 Volume 02 : Number 696 In this issue: [CANSLIM] Average Daily Volume (ADV) Re: [CANSLIM] Average Daily Volume (ADV) Re: [CANSLIM] Average Daily Volume (ADV) [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis [CANSLIM] Acc/Dis Numbers Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis [CANSLIM] Portfolio software Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis ---------------------------------------------------------------------- Date: Tue, 07 Sep 1999 10:54:14 -0700 From: Subject: [CANSLIM] Average Daily Volume (ADV) I found a free source that calculates ADV for the past 50 days (the same as DGO and IBD uses)...that is BigCharts...they also show the 200 day ADV...when you view a chart on BigCharts, above the chart choose the "detailed quote" option... you will then get a screen that shows a number of items including the 50d and 200d ADV. I also checked these numbers against the ADV used by Yahoo and found then to be different...Yahoo appears to be using something like a 100d ADV. FYI Ray "Ziggy" Wroblewski Gilbert, AZ - - ------------------------------ Date: 7 Sep 1999 11:15:43 -0700 From: "Tim Fisher" Subject: Re: [CANSLIM] Average Daily Volume (ADV) Not quite a 100d avg., but it's a strange formula for sure. From the Yahoo Quotes FAQ: Avg Vol Average Daily Volume is the monthly average of the cumulative trading volume during the last three months divided by 22 days. It is updated weekly, and is provided by Market Guide. On 10:54 AM 9/7/99 , wroblewski@uswest.net Said: >I found a free source that calculates ADV for the past 50 >days (the same as DGO and IBD uses)...that is >BigCharts...they also show the 200 day ADV...when you view a >chart on BigCharts, above the chart choose the "detailed >quote" option... you will then get a screen that shows a >number of items including the 50d and 200d ADV. I also >checked these numbers against the ADV used by Yahoo and >found then to be different...Yahoo appears to be using >something like a 100d ADV. > >FYI > >Ray "Ziggy" Wroblewski >Gilbert, AZ Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 07 Sep 1999 11:49:47 -0700 From: Subject: Re: [CANSLIM] Average Daily Volume (ADV) Thanks Tim...I ran a hypothetical using Yahoo's formula and a 66d average and they came out the same. I'm not sure if their formula and a straight 66d average would always be exact...but for the sake of keeping it simple...it is very close. Ziggy Tim Fisher wrote: > Not quite a 100d avg., but it's a strange formula for sure. From the Yahoo > Quotes FAQ: > > Avg Vol > Average Daily Volume is the monthly average of the cumulative trading > volume during the last three months divided by 22 days. > It is updated weekly, and is provided by Market Guide. > > On 10:54 AM 9/7/99 , wroblewski@uswest.net Said: > >I found a free source that calculates ADV for the past 50 > >days (the same as DGO and IBD uses)...that is > >BigCharts...they also show the 200 day ADV...when you view a > >chart on BigCharts, above the chart choose the "detailed > >quote" option... you will then get a screen that shows a > >number of items including the 50d and 200d ADV. I also > >checked these numbers against the ADV used by Yahoo and > >found then to be different...Yahoo appears to be using > >something like a 100d ADV. > > > >FYI > > > >Ray "Ziggy" Wroblewski > >Gilbert, AZ > > Tim Fisher > Ore-Rock-On and Pacific Fishery Biologists WWW Sites > > Tim@OreRockOn.com > WWW: http://OreRockOn.com > See naked fish and rocks! > > - - - ------------------------------ Date: Tue, 7 Sep 1999 15:46:32 -0700 From: "Jack" Subject: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Today I had the occasion of trying to make my first attempt at a analysis of THQI, THQ Inc., to determine whether the cup and handle formed for the stock met the CAN SLIM requirements of O'Neil for buying. Since it was my first effort I want to set out the analysis here and solicit members of this mail list to critique it. My purpose is to see if I'm on the right track in the analytical methodology and whether my thinking is on track or flawed. Being a retired lawyer my skin is thick enough to withstand incisive and brutal criticism. I want to learn this stuff. So following is my analysis: In viewing the DGO graph as of September 3, 1999 I could see what appeared to be a cup and handle configuration for the stock. I re-read page 26 of O'Neil's "How to Make Money in Stocks." O'Neil wrote: "When to Correctly Begin Buying a Stock" "A stock should be close to or actually making a new high in price after undergoing a price correction and consolidation. The consolidation (base-building period) in price could normally last anywhere from seven or eight weeks up to fifteen months." "As the stock emerges from its price adjustment phase, slowly resumes an uptrend, and is approaching new high ground, this is, believe it or not, the correct time to consider buying. The stock should be bought just as it's starting to break out of its price base." "You must avoid buying once the stock is extended more than 5% or 10% from the exact buy point off the base." That page left me unsatisfied. O'Neil's description was too nebulous. I wanted to know if there was a way, objectively, to identify the actual optimal point to buy the stock. I wanted some way to measure it rather than make a judgment call as to when the stock was "starting to break out of its price base." It was not until I found O'Neil's "26 Weeks to Successful Investing" (particularly Weeks 9, 10 and 11) at http://ibd.infostreet.com that I found his statement spelling out how to find the "pivot point," his label for the point at which the time to buy the stock was ripe. He stated the pivot point is 1/8th of a point above the peak price in the cup handle. Now, armed with that knowledge, I will see if I can apply his method. I'll "think outloud here." I'll use the price pattern points of X, A, B, C, D and E to delineate the outline of the cup with a handle. The first question is whether or not there is a "prior uptrend" leading up to the commencement of the cup at point A? O'Neil designates the prior uptrend line as X - A. Looking at the chart of THQI it appears there is a prior uptrend which began on June 4, 1999 when the stock price reached an absolute high (the intraday high) of 23.63. That would be point X. The uptrend continued until the stock price reached an absolute high of 34.50 on July 19, 1999. That is point A, the left lip of the cup. Has there been a 30% increase in price in the uptrend of X-A? If my high school math is correct I say yes, that the increase in price was 46%. Has there been a 20-30% decline in price from the absolute peak (point A) to the low of the cup (point B)? The low of the cup (point B) occurred July 27, 1999 when the price of the stock reached the absolute low of 26.00. Again, applying my high school math, it looks like the decrease in the stock price from point A - B was 25%. So that element of the formula is met. Has the cup handle drifted downward along its lows or a break below a prior week's low in the handle? To determine if that requirement has been fulfilled I must try and determine what part of the overall pattern constitutes the "handle" (points C-E) as opposed to the cup. Arguably, looking at the graph, the cup's handle commenced August 19 when the price of the stock reached and absolute high that day of 31.25. So, if that's accurate that would mean that August 19 would be point C on the cup, the beginning of the handle. The handle portion of the cup pattern would run from August 19 through September 3. That would be points C - E. Next, one must determine whether the cup and handle has taken at least 7-8 weeks to form (A-B-C-E)? Well, point A began July 19 and point E was September 3. So, eyeballing the DGO chart it appears the pattern consume 7 weeks in time. So that element has been met. Now we need to ascertain if the cup handle drifted downward along its lows or a if a break occurred below a prior week's (or day's) low in the handle (shakeout). Looking at the stock prices between August 19 through September 3, it appears that 6 low points occurred between those dates. We will use D as the marker for the low points. Point D1 occurred August 20 when the stock reached an absolute low that day of 30.00; D2 was August 24 when the stock fell to 28.25, D3 was August 26 when it fell to 30.25, then D4 was August 27 at 30.13, D5 was September 1 at a low of the day of 30.50 and finally, September 2, which fell to a low of 30.37. So there are multiple lows along the handle which should meet the definition of a shakeout. Next we must see if there was a "marked dry-up in volume" near the lows or if there are several tight areas where the price of the stock varies only a tiny amount for several weeks. The average daily volume for THQI is 295,600 shares. Perusing the course of the cup's handle from C-D-E we find the following volumes arose between August 19 and September 3. August 19, 1999: 196, 800 August 20, 1999: 084,000 August 23, 1999: 086,800 August 24, 1999: 255,600 August 25, 1999: 1,141,500 August 26, 1999: 260,200 August 27, 1999: 132,100 August 30, 1999: 277,700 August 31, 1999: 733,100 September 1, 1999: 575,500 September 2, 1999: 081,400 September 3, 1999: 166,200 Thus, of the twelve days nine of them were below the average daily volume. If I correctly understand this "dry-up" requirement, it would appear that it has been satisfied. Now, we must determine if the cup handle is contained within the upper ½ of the overall cup and handle pattern. At point A (the beginning of the overall pattern) the absolute high price of the day was 34.50. The lowest (point B) absolute low was 26.00 which occurred on July 27. The difference between 34.50 and 26.00 is 8.50. One-half of 8.50 is 4.25. Thus, the halfway price would be 26.00 + 4.25 = 30.25. The lowest price contained in the C-D-E cup handle was 30.00 which occurred on August 20. So, the cup handle was within the upper 1/2 of the overall pattern-except for the 0.25 cents of August 20. That looks close enough for me. The next issue to address is the "pivot point." O'Neil says the pivot point is 1/8th of a point above the peak price in the cup handle (C-D-E). The peak intraday price that occurred in the course of C-D-E was on August 25, which was 32.25. Back to my high school math. One-eighth of a point is 0.13 cents. So, one-eighth of a point above the peak price should be 32.25 + 0.13 = 32.38. Finally, the volume must increase to at least 50% above the daily average before the pivot point is triggered. The average daily volume of THQI is 295,600 according to DGO. That indicates the volume level that must be reached before the pivot point is reached is 443,400 shares. At that point one would buy the stock at $32.38 per share. That concludes the analysis. I am anxious to read the critiques. Thank you. Jack_Wood@email.msn.com Jack_Wood@email.msn.com - - ------------------------------ Date: Tue, 7 Sep 1999 18:50:24 EDT From: FBNAirPlt@aol.com Subject: [CANSLIM] Acc/Dis Numbers Here are the latest Acc/Dis Numbers Date A B C D E AB/A:E %E 8/30/99 965 2704 1380 1125 460 55% 7% 8/31/99 959 2688 1390 1130 478 55% 7% 9/1/99 939 2596 1410 1190 495 53% 7% 9/2/99 927 2606 1391 1191 506 53% 8% 9/3/99 931 2653 1416 1153 481 54% 7% 9/7/99 913 2575 1438 1198 505 53% 8% Spreadsheet version Date,A,B,C,D,E,AB/A:E,%E 8/30/99,965,2704,1380,1125,460,55%,7% 8/31/99,959,2688,1390,1130,478,55%,7% 9/1/99,939,2596,1410,1190,495,53%,7% 9/2/99,927,2606,1391,1191,506,53%,8% 9/3/99,931,2653,1416,1153,481,54%,7% 9/7/99,913,2575,1438,1198,505,53%,8% Robert - - ------------------------------ Date: Tue, 07 Sep 1999 19:58:33 -0400 From: Hugh Fader Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Jack, I don't think there is a proper cup with handle on THQI. O'Neil calls what it is doing "wedging up" and says this is a failure prone pattern. Starting in late July, it is rising linearly. This is the wedge. Ideally, you would have a semi-circular pattern with symmetry about the minimum point. Sometimes you have to squint to see this. I was going to point you to the 26 Weeks to Success series that IBD had online, but I see its gone. There was another good example of this in there. (Glad I kept a local copy of this.) Now, IBD has a new possibly more comprehensive tutorial at http://www.investors.com/educate/edumod00.html. Hugh Jack wrote: > Today I had the occasion of trying to make my first attempt at a analysis of > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > met the CAN SLIM requirements of O'Neil for buying. > > Since it was my first effort I want to set out the analysis here and solicit > members of this mail list to critique it. My purpose is to see if I'm on the > right track in the analytical methodology and whether my thinking is on > track or flawed. Being a retired lawyer my skin is thick enough to withstand > incisive and brutal criticism. I want to learn this stuff. So following is > my analysis: > > Jack_Wood@email.msn.com > > - - - ------------------------------ Date: Tue, 7 Sep 1999 23:05:26 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis > > Today I had the occasion of trying to make my first attempt at a analysis of > > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > > met the CAN SLIM requirements of O'Neil for buying. Here is an alternative analysis, since this is somewhat subjective, can't say for certain this is more correct than yours - Left side of Cup is on 1/6/99, right side of cup 6/30/99, Handle is the short part up until 7/15/99, followed by a failed breakout, which began with that spike up on 7/16. With the breakout having failed, what you are calling a cup is merely part of a broader basing pattern that began on 1/6. Here is something I post to this group every few months, if you are new you won't have seen this. I found it quite helpful. This came from the magazine Technical Analysis of Stocks and Commodities - - ----------------------------------------------------------------------------------------- The cup of the pattern typically forms during intermediate-term market corrections and is usually 3 to 6 months in duration, but can be as long as 12 months during bear markets or as short as seven weeks during bull markets. The left side of the cup is a downtrend correcting the previous uptrend. The stock price bottoms and begins to advance, forming the right side of the cup. "During the formation of the cup's right side, the stock becomes subject to profit-taking at its old highs - the beginning of the cup formation - from sellers who bought at the cups bottom. In addition, investors who bought the stock near its old highs on the left side of the cup are anxious to sell." "The handle of the cup is usually more than one or two weeks long and should drift down on very low volume and form in the upper half of the pattern, preferably the upper third. A handle that drifts lower is important because it indicates that enough disbelievers are still active at that point. "... At this point, the volume should be light, indicating a lack of sellers. During the formation of the handle, new buyers step in and smart money adds to their positions, supporting the stock. When the stock breaks out from its handle, volume must surge by 40% above its avg. daily volume to confirm that demand is present at the stock's earliest emergin point." "Handles may also form slightly in new high ground [sic] when the right side of the cup drives somewhat higher than the cup's left side. ... Whatever the variation, the breakouts above the handle's high - the high on the right side of the cup - is what the investor wants to buy, which may or may not be a new high for the stock." " Many C&H patterns are 12-20% in depth, and can be as deep as 35-40% following market corrrections. Unless a bear market is present, depths of more than 45% are too excessive, making it difficult for a stock to successfully break out once the pattern is complete." - - ------------------------------ Date: Tue, 7 Sep 1999 22:06:21 -0700 From: "Jack" Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Thank you Hugh. I sincerely appreciate you taking the time review my analysis. I can see that I need a lot of help in trying to identify a proper cup and handle. Your description of "wedging" is quite helpful. The 26 Weeks to Success series is still on the site at http://ibd.infostreet.com/won/ I had read the tutorial you refer to a few months ago. I will re-read it and see if I can get that material more squarely in mind. Again, many thanks. Jack - ----- Original Message ----- From: Hugh Fader To: Sent: Tuesday, September 07, 1999 4:58 PM Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis > Jack, > > I don't think there is a proper cup with handle on THQI. O'Neil calls what it is > doing "wedging up" and says this is a failure prone pattern. Starting in late > July, it is rising linearly. This is the wedge. Ideally, you would have a > semi-circular pattern with symmetry about the minimum point. Sometimes you have > to squint to see this. > > I was going to point you to the 26 Weeks to Success series that IBD had online, > but I see its gone. There was another good example of this in there. (Glad I > kept a local copy of this.) Now, IBD has a new possibly more comprehensive > tutorial at http://www.investors.com/educate/edumod00.html. > > Hugh > > Jack wrote: > > > Today I had the occasion of trying to make my first attempt at a analysis of > > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > > met the CAN SLIM requirements of O'Neil for buying. > > > > Since it was my first effort I want to set out the analysis here and solicit > > members of this mail list to critique it. My purpose is to see if I'm on the > > right track in the analytical methodology and whether my thinking is on > > track or flawed. Being a retired lawyer my skin is thick enough to withstand > > incisive and brutal criticism. I want to learn this stuff. So following is > > my analysis: > > > > Jack_Wood@email.msn.com > > > > - > > > > > - > - - ------------------------------ Date: Tue, 7 Sep 1999 22:21:51 -0700 From: "Jack" Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis My appreciation and thanks, Patrick, for your observations and for the magazine Technical Analysis of Stocks and Commodities article. I had never view the chart just as you did, starting way back in January. I thought the overall cup and handle formation had to be far more recent in time, but apparently not. Spotting a cup and handle is rather difficult, and subjective, I'm learning. I'm interested in what everyone else thinks too. Again, thank you. Jack - ----- Original Message ----- From: Patrick Wahl To: Sent: Wednesday, September 08, 1999 12:05 AM Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis > > > > Today I had the occasion of trying to make my first attempt at a analysis of > > > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > > > met the CAN SLIM requirements of O'Neil for buying. > > Here is an alternative analysis, since this is somewhat subjective, > can't say for certain this is more correct than yours - > > Left side of Cup is on 1/6/99, right side of cup 6/30/99, Handle is > the short part up until 7/15/99, followed by a failed breakout, which > began with that spike up on 7/16. With the breakout having failed, > what you are calling a cup is merely part of a broader basing > pattern that began on 1/6. > > Here is something I post to this group every few months, if you are > new you won't have seen this. I found it quite helpful. This came > from the magazine Technical Analysis of Stocks and Commodities - > > -------------------------------------------------------------------------- - --------------- > > > The cup of the pattern typically forms during intermediate-term > market corrections and is usually 3 to 6 months in duration, but > can be as long as 12 months during bear markets or as short as > seven weeks during bull markets. The left side of the cup is a > downtrend correcting the previous uptrend. The stock price > bottoms and begins to advance, forming the right side of the cup. > > "During the formation of the cup's right side, the stock becomes > subject to profit-taking at its old highs - the beginning of the cup > formation - from sellers who bought at the cups bottom. In > addition, investors who bought the stock near its old highs on the > left side of the cup are anxious to sell." > > "The handle of the cup is usually more than one or two weeks long > and should drift down on very low volume and form in the upper half > of the pattern, preferably the upper third. A handle that drifts lower > is important because it indicates that enough disbelievers are still > active at that point. > > "... At this point, the volume should be light, indicating a lack of > sellers. During the formation of the handle, new buyers step in and > smart money adds to their positions, supporting the stock. When > the stock breaks out from its handle, volume must surge by 40% > above its avg. daily volume to confirm that demand is present at the > stock's earliest emergin point." > > "Handles may also form slightly in new high ground [sic] when the > right side of the cup drives somewhat higher than the cup's left > side. ... Whatever the variation, the breakouts above the handle's > high - the high on the right side of the cup - is what the investor > wants to buy, which may or may not be a new high for the stock." > > " Many C&H patterns are 12-20% in depth, and can be as deep as > 35-40% following market corrrections. Unless a bear market is > present, depths of more than 45% are too excessive, making it > difficult for a stock to successfully break out once the pattern is > complete." > > > > > > > - > - - ------------------------------ Date: Wed, 8 Sep 1999 09:38:54 -0700 From: "Peter Newell" Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Jack, Looks to me like the stock is about to form a handle, then I'd look for a breakout. However, compare this chart to a chart of EMC and I think you'd find EMC = to be a stronger pattern. Peter - -----Original Message----- From: Jack To: CanSlim Date: Tuesday, September 07, 1999 3:47 PM Subject: [CANSLIM] An analysis of THQI and solicitation of criticisms of = the analysis >Today I had the occasion of trying to make my first attempt at a analysi= s of >THQI, THQ Inc., to determine whether the cup and handle formed for the stock >met the CAN SLIM requirements of O'Neil for buying. > > >Jack_Wood@email.msn.com > > > > > >- > > - - ------------------------------ Date: Wed, 08 Sep 1999 06:50:30 -0700 From: Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Welcome Jack, I want to echo Hugh's and Patrick's comments. I would suggest you look at pages 162-164 of HTMMIS for some , additional explaination of cup and handle patterns...you are right that a lot of this is somewhat subjective, but the closer you find patterns that look like they're supposed to, the more likely that particular stock will go up. Also, there definitely was no "marked dry-up in volume" in what you described as the handle. The ADV for the 12 days of the handle was 332,575 and for the last 4 days of the handle it was even higher at an ADV of 389,050. Both of these numbers are higher than the stock's 50 day average volume of 295,600. A dry-up in volume will be more like 10 to 40% of ADV and drifting lower...and generally on higher volume days in the handle, the stock price should not decline. It takes a lot of practice and looking at many charts to start getting the hang of it, but believe me it will come. I've been doing this full time for about 1 year and am now more comfortable with chart patterns, but I'm still learning every day. One thing I learned is that most charts do not have constructive patterns...maybe only 10 %...but you find those that do and are fundamentally solid and you improve your odds considerably. Good luck, Ziggy Jack wrote: > Today I had the occasion of trying to make my first attempt at a analysis of > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > met the CAN SLIM requirements of O'Neil for buying. > < Big Snip> > Jack_Wood@email.msn.com > > - - - ------------------------------ Date: Wed, 8 Sep 1999 08:50:09 -0500 From: Fred Rendon Subject: [CANSLIM] Portfolio software Hello to all Investors And Traders I'm looking for a good portfolio Tracking software. If anyone knows of one please let me know. Thank you Fred Rendon - - ------------------------------ Date: Wed, 8 Sep 1999 12:26:23 -0700 From: "Jack" Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis Thank you very much, Ziggy, for your critique and comments. I have looked at pages 162-165 of HTMMIS. Then, after reading it, I think I understood what I read. However, I am sometimes not seeing all I need to see in the charts and I am misinterpreting what O'Neil is saying in the book. Comments from members of this list is making that clear to me. For example, from your comments, it never occurred to me to calculate the ADV of the volumes displayed for the handle of the cup. Nor did I even recognize that I should not ignore days in the handle when the price of the stock was up. I only focused on the days the stock price was down. One of the values of these critiques is that I am learning that interpretation of the charts is influenced by the what the observer is looking for. Thus, I am finding more factors to take into account when looking at charts. As you indicate, charts with possible cup and handle configurations are not as plentiful as I originally thought. Thanks again for your help Jack_Wood@email.msn.com - ----- Original Message ----- From: To: Sent: Wednesday, September 08, 1999 6:50 AM Subject: Re: [CANSLIM] An analysis of THQI and solicitation of criticisms of the analysis > Welcome Jack, > > I want to echo Hugh's and Patrick's comments. I would suggest you look at pages > 162-164 of HTMMIS for some , additional explaination of cup and handle > patterns...you are right that a lot of this is somewhat subjective, but the > closer you find patterns that look like they're supposed to, the more likely > that particular stock will go up. > > Also, there definitely was no "marked dry-up in volume" in what you described as > the handle. The ADV for the 12 days of the handle was 332,575 and for the last 4 > days of the handle it was even higher at an ADV of 389,050. Both of these > numbers are higher than the stock's 50 day average volume of 295,600. A dry-up > in volume will be more like 10 to 40% of ADV and drifting lower...and generally > on higher volume days in the handle, the stock price should not decline. > > It takes a lot of practice and looking at many charts to start getting the hang > of it, but believe me it will come. I've been doing this full time for about 1 > year and am now more comfortable with chart patterns, but I'm still learning > every day. One thing I learned is that most charts do not have constructive > patterns...maybe only 10 %...but you find those that do and are fundamentally > solid and you improve your odds considerably. > > Good luck, > > Ziggy > > Jack wrote: > > > Today I had the occasion of trying to make my first attempt at a analysis of > > THQI, THQ Inc., to determine whether the cup and handle formed for the stock > > met the CAN SLIM requirements of O'Neil for buying. > > > > < Big Snip> > > > Jack_Wood@email.msn.com > > > > - > > > > > > > - > - - ------------------------------ End of canslim-digest V2 #696 ***************************** 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.