From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #116 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk canslim-digest Saturday, February 14 1998 Volume 02 : Number 116 In this issue: RE: [CANSLIM] Nice example of failure of breakout: DMMC [CANSLIM] filters that cost money? [CANSLIM] Nice example, part2: PTIX Re: [CANSLIM] PTIX vs DMMC (was Nice example, part2: PTIX) [CANSLIM] World Markets [CANSLIM] PURW - CANSLIM ??? (Pure World) Re: [CANSLIM] Intro: Craig Hogan [CANSLIM] TFG WEYS [CANSLIM] Re: canslim-digest V2 #115 [CANSLIM] Introduction, William [CANSLIM] ZACK's investment research service Re: [CANSLIM] Re: canslim-digest V2 #115 [CANSLIM] GSMS ---------------------------------------------------------------------- Date: Thu, 12 Feb 1998 20:54:40 -0800 From: Mike Lucero Subject: RE: [CANSLIM] Nice example of failure of breakout: DMMC Connie Mack, I'm interested in how important you think MF is after you own the stock. I own CCL, and for the past week, I believe the (daily) MF has negatively diverged from the stock price. I think the weekly MF and daily and weekly OBV is okay. Thanks, Mike Lucero On Thursday, February 12, 1998 5:13 PM, Connie Mack Rea [SMTP:rea1998@gte.net] wrote: > Evening Johan-- > > If I may Johan, could I offer a few thoughts. > > There were [are] some indicators that you were trading against. > Initially, the Fast Stochastic had turned sharply down at the time you > were buying. > > Second, momentum indicators were tracking the stock; nothing to beware > of here. > > Third, William's %R indicator showed that the stock was quite a bit > oversold the day you bought in. This indicator tracks momentum and > hence overbought/oversold. > > Fourth, the MACD had been negative for two weeks. > > There are two further indicators, indicators that I rarely trade > against: OBV/MF. The OBV indicator looked to be without fault; it, like > the stock, had an upward bias. > > But the MF would have scared me off. It was not only not tracking the > stock, but was showing a strong negative divergence. > > I mentioned indicators other than what I pay strict attention to only > because other members may attend to them. One reason I pay little > attention to them is that if a stock meets my criteria, I rarely see > other indicators turn up negative. > > Always a trader or an investor should have some allotting [perhaps a > percentage] to each indicator. Those in my stock group at the > university think they are flexible when they refuse to set weight to an > indicator. To me, their flexibleness is the result of failing to > understand the significance of an indicator, especially understanding > just what it checks. > > Not to have a written specimen of what your indicator weighs is to undo > the reason for having indicators in the first place. "In-and-in" is a > phrase that means repeatedly within the same or closely related > stock--to breed pigs in-and-in. Many indicators are in-and-in; i.e., > almost all indicators are either locally or remotely inter-related. One > ought to impose structural categories, as best he can, on what these > indicators measure, on what is being measured. > > That done, he should give each of them some specified weight. For me, > my OBV/MF indicators are pre-eminent, probably 90% of my choice to buy > [or sell]. Absent their favorable reading, I don't look much further. > Exceptions are stocks that I know are stocks that traders work; e.g., I > bought ORCL a couple of weeks ago when it looked, by all standards, > rotten. It had been beaten down unmercifully. That ought not imply > that I have an "unmerciful" indicator, but rather that traders work this > stock; it looked ready for a dead cat bounce. A few big buys, a kick in > volume, and what is a trader's stock becomes interesting to others. > Too, I watch such a stock on 5 and 15 minutes' charts, and I don't put > much capital at risk. > > Canslim criteria look at stocks breaking out to new highs. My OBV/MF > indicators won't kick such stocks, for in all likelihood my OBV/MF are > tracking the stock price rather than showing a positive divergence. > What my indicators would tell the Canslimer is that the stock, by these > criteria, is strong. In Johan's case, MF ought to have given him pause. > > What the OBV/MF do for me is to discover a breakout from a low or > intermediate low. In this instance there is room for the indicator to > positively diverge from price. When a stock in breaking out of a high, > there can be no positive divergence. There can, however, be a negative > divergence, which is a powerful danger sign. A double negative > divergence would, to me, indicate a prospective short. > > I have posted all but a few of the stocks that the OBV/MF kicked out > recently, not more than 15 or so in a couple of months. I have sold 95% > of my stocks; none were sold at their highs. Three or four of you have > said you are still holding onto some of my list--and you have done > well. But don't try to get the last 1/8th out of a stock. Traders take > their piece out of the middle; that's why we can live on 60% of winning > trades. There is always another horse to ride, and if not saddled the > next day, then the one after that, or after that. > > I'm itchy, for I have not traded in over a week. I have left 10-15 > percent of possible profits of the stocks I sold on the table. This > leaving of possible profits on the table is as it should be for a > trader; even higher leavings are perfectly okay, for when there is a > correction, I will not have a single loser to worry about. My every > thought will be to find another stock. > > I infer that some Canslimers have had always a stock or two that dragged > down your capital and that you spend time on trying to get out even or > with some acceptable loss. Nothing is worse for a trader or an investor > than having a loser that he can't get rid of; a single loser can make > every hour of your day and night miserable. > > I have thought about an analogy between investors/traders and > hawks/falcons: Hawks take prey on the ground; falcons take prey on the > fly. The lesson to be learned is not to prefer one to the other, for > both the hawk and the falcon find sufficient prey, but rather to know > which you are and be the best hawk or falcon you can be. > > Both the hawks and falcons can take a look at CMW. I will buy the stock > after there is a bit of correction. There are a few of my other > postings that I will re-look at. I'll post them later. > > Connie Mack > > > > > > Johan Van Houtven wrote: > > > Broke out yesterday, faded and broke down further today. > > > > In and out in less that 8 hours, and lost money. > > > > Luckily I'm still 6.3% ahead for the year. > > > > I'd like to know I anyone can tell me I should not have bought this > > breakout. In at 18 1/8 out at 17. > > > > - > > > << File: ATT00000.htm >> - - ------------------------------ Date: Thu, 12 Feb 1998 22:57:21 -0700 From: "Joe J." Subject: [CANSLIM] filters that cost money? Craig Hogan posted the following: > > How much more do you get for filters that cost money? I've been using > the free filter here: > > http://w3.one.net/~stod/ > > Is there something wrong with that? Nothing wrong with that. However, I checked out the site and it seems that you are limited to the pre-canned data categories. For example, I didn't see anything letting you scan for new highs on increased volume, with rel. strenth of > 85, etc. This is what you can do with QuotesPlus (i.e., write your own custom scans - which can also include some basic technical analysis features such as 21 day Moneyflow Oscillators, Moving averages, etc.). Also, I have Metastock which requires data to be downloaded onto my hard drive. QuotesPlus (and many other pay services) will do this. You might want to check out their web-site for more info. Good Luck. Joe J. - - ------------------------------ Date: Fri, 13 Feb 1998 13:25:51 +0100 From: Derrick REAGINS Subject: [CANSLIM] Nice example, part2: PTIX Hello everyone, I've also been lurking for a couple of months and wanted to take a moment to say thanks for the interesting commentaries that have been presented here. I've been a CANSLIMer for about 4 years and I'm please to find that there is a healthy news group which discusses stocks that follow WON's principles. As for DMMC, I actually bought this stock at 18.125 the day of the breakout. I guess one could say I was itchy to buy something, because upon finding that PTIX had also broke out from 15.5 to 17.375 the same day, I reviewed the profiles of each and sold the DMMC at 18.125 to buy PTIX which soared to 21.5 the following day. Unfortunately PTIX IMHO is also an example of a failed breakout, yesterday it fell 9%. Contrary to DMMC the fundamentals of PTIX the debt ratio was zero, the float was low, and the EPS was high. Also OBV and Money Flow, two indicators that I can only thank Connie for enlighting me on, were both rising. I would love to hear your opinions/analysis of this stock and its recent price action. Derrick Reagins dreagins@businessobjects.com - - ------------------------------ Date: Fri, 13 Feb 1998 07:45:38 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] PTIX vs DMMC (was Nice example, part2: PTIX) Fundamentally and technically both stocks very similar but different groups. DMMC has better timeliness (A vs B) and GRS (91 vs 51). With a base at 15, it would seem you bot PTIX over 10% above the base. Current and projected PEs about the same, as is up/down and A/D. Funds already own more of PTIX (27% vs 14%) so more room for addl institutional buying on DMMC. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Derrick REAGINS To: 'canslim@lists.xmission.com' Date: Friday, February 13, 1998 7:26 AM Subject: [CANSLIM] Nice example, part2: PTIX >Hello everyone, I've also been lurking for a couple of months and wanted >to take a moment to say thanks for the interesting commentaries that >have been presented here. I've been a CANSLIMer for about 4 years and >I'm please to find that there is a healthy news group which discusses >stocks that follow WON's principles. > >As for DMMC, I actually bought this stock at 18.125 the day of the >breakout. >I guess one could say I was itchy to buy something, because upon finding >that PTIX had also broke out from 15.5 to 17.375 the same day, I >reviewed >the profiles of each and sold the DMMC at 18.125 to buy PTIX which >soared >to 21.5 the following day. Unfortunately PTIX IMHO is also an example >of a failed breakout, yesterday it fell 9%. > >Contrary to DMMC the fundamentals of PTIX the debt ratio was zero, the >float was low, and the EPS was high. Also OBV and Money Flow, two >indicators that I can only thank Connie for enlighting me on, were both >rising. > >I would love to hear your opinions/analysis of this stock and its recent > >price action. > >Derrick Reagins >dreagins@businessobjects.com > >- > - - ------------------------------ Date: Fri, 13 Feb 1998 07:54:45 -0500 From: "Tom Worley" Subject: [CANSLIM] World Markets Kinda confusing picture this morning. The media commentators made it sound like Asia had a pretty bleak Friday the 13th, and the percent down nrs in most important mkts confirm this. However, Europe so far not showing the same kinds of selloff, nor are the S&P500 or Nasdaq 100 futures, altho both down. Likewise initial action in Latin America not following Asia. Market indicator charts at DG Online for both NYSE and NASDAQ both show over bought conditions easing slightly, but 10 day moving average of up volume also easing. Next week is options expiration, always volatile, and the mkts are closed Monday, meaning a long weekend and many traders do not like carrying a position over a weekend, much less a long one, thus my gut feel is for a down day, but so far doesn't look severe. I am taking a needed vacation next week, so my info flow will be sporatic. If I'm on the net, you can contact me via ICQ chat or this group. I will try to get the data for the economic calendar and post it. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - - ------------------------------ Date: Fri, 13 Feb 1998 08:13:14 -0500 From: "Tom Worley" Subject: [CANSLIM] PURW - CANSLIM ??? (Pure World) Not a stock for all, a microcap trading just under $6 after yesterday (DISCLOSURE - I own it at 7.125 from the last failed breakout, if you want to be nice and call that mistake such). Have held it as earnings good and other technicals remained strong, only the price was weak (rats!). Lately, a typical day was only 2-3 thousand shares. Yesterday, it came to life, doing about 140% of adv. Was bid strongly, often with only a 1/16 spread compared to the typical eighth or qtr pt. Right before the close, a nr of trades went off at the offer (spread at the time only 1/16) suggesting to me that there were buyers that wanted to own the stock regardless. Other than pending Q4 results, I am not aware of any news altho had an email from Bob Davis suggesting that Pure World with symbol of PURL vice PURW may be acquiring Aloette (ALET). As the acquiring firm if true, that wouldn't account for the action. However, all that said, for those that have an interest in small and micro caps, at least this one has decent CS elements and moving up on volume from a reasonably lengthy base. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - - ------------------------------ Date: Fri, 13 Feb 1998 09:00:12 -0500 From: Sam Funchess Subject: Re: [CANSLIM] Intro: Craig Hogan Zoran, you are still with us. Very good. Wish you had time to post more often, but I understand the restraints of time. Hope all is well. Sam Zoran Mitrovski wrote: > Yes, I too remember asking the very same questions Craig asked in his > intro. My stance now is that it really doesn't matter whether a given > rigid interpolation of the CANSLIM rules would give satisfactory results > when backtested over the universe of all stocks and for decades back in > time. It simply won't prove anything. CANSLIM is merely a good basis > for a wide audience of investors to start from. It teaches the importance > of earnings, fundamentals, accellerated growth, healthy chart patterns, > and a little bit about market psychology. I see it merely as a set of > issues that have time and time again been shown to influence movements > of stocks, both short- and long-term. That's all. Beyond that, we are > all on our own, each with our own neural networks (brains) that respond > differently to our experiences. The most important part is the "beyond" > part and it is acquired only through experience. A well-trained > trader's brain at some point reaches a level of complexity where it > is no longer possible to present its operation via a simple set of 7 > (or any other finite number of) rigid rules. But then again, who knows > what I will think a year from now. This very paragraph above is nothing > but an output of my neural network at its present stage of complexity > and sophistication, and the training is far from over. ;^) > > Zoran > > > Craig, > > > > If you search the archives, you may find quite a bit on this. There used > > to be a member of this group named Zoran Mitrovski who has a very scientific > > bent. I am a trained statistician, so I am familiar with validity testing. > > I have never taken the time to test statistical validity because there is > > a lot of CANSLIM which is somewhat subjective. However, Zoran had some > > very eloquent thoughts. I miss his insight; it would be interesting to > > hear his thoughts on this again. If I get ambitious, I will search for > > them. > > > > Dave Cameron > > - - - ------------------------------ Date: Fri, 13 Feb 1998 09:19:30 -0500 From: Connie Mack Rea Subject: [CANSLIM] TFG WEYS - --------------10CBDE27FDE39042DFDE683B Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Members-- TFG and WEYS have OBV/MF positive divergent patterns. Check the spread; volume is low. Notice that someone posted about the worth of BigCharts, which has been my choice as the best free site available. The charts are even faster this morning. Learn this site minutely. Connie Mack - --------------10CBDE27FDE39042DFDE683B Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit Members--

TFG and WEYS have OBV/MF positive divergent patterns.  Check the spread; volume is low.

Notice that someone posted about the worth of BigCharts, which has been my choice as the best free site available.  The charts are even faster this morning.  Learn this site minutely.

Connie Mack - --------------10CBDE27FDE39042DFDE683B-- - - ------------------------------ Date: Fri, 13 Feb 1998 09:03:08 -0600 (CST) From: mckeener@ix.netcom.com (Mary Keener) Subject: [CANSLIM] Re: canslim-digest V2 #115 Hello Canslimers, Many, many thanks for all your valuable information, questions and some debate. I've been investing for a few months with just a little success due to my impatience and fear. However, I do follow the 8% loss rule which has kept me on board, albeit a little shaky. After deciding to stand back a little, re-read O'Neill's book, along with The Nature of Risk by Justin Mamis and a few others, I'm doing a bit better. The next reason I wanted to change my position as an observer here is to suggest taking a good look at today's (2-13) investor's corner of the IBD. It may answser some of your questions regarding charts, the best time to buy and sell. I'm studying it via the stocks I've bought to see where I went wrong exactly. It's given me a clearer idea even though I have a long way to go. The best to you all. Mary Keener McKeener@ix.netcom.com - - ------------------------------ Date: Thu, 12 Feb 1998 20:14:47 -0800 From: William A Rhodes Subject: [CANSLIM] Introduction, William Hi Group, I am a 46 year old who owns a petroleum distributorship in Calif. I have a Sep Ira at work that has done well over the years and bought a few hundred shares each of Microsoft and Coke in 1993. I on my second read of HTMMIS, and subscribe to and read IBD every day, also have been lurking on the board for a while and have learned a lot. Here are two stocks to look at, both have developed a cup and are forming a handle. ARX EPS - 91 RS - 98 A/D - A STS EPS - 88 RS - 85 A/D - A (AMEX) Thanks, William - - ------------------------------ Date: Fri, 13 Feb 1998 11:02:06 -0800 (PST) From: Anindo Majumdar Subject: [CANSLIM] ZACK's investment research service What do people think of ZACK's Investment research serv ice.They offer screens, company reports etc for 348 dollars per year. Do people think this service is worthwhile ? Anindo > > Not a stock for all, a microcap trading just under $6 after yesterday > (DISCLOSURE - I own it at 7.125 from the last failed breakout, if you want > to be nice and call that mistake such). Have held it as earnings good and > other technicals remained strong, only the price was weak (rats!). Lately, a > typical day was only 2-3 thousand shares. Yesterday, it came to life, doing > about 140% of adv. Was bid strongly, often with only a 1/16 spread compared > to the typical eighth or qtr pt. Right before the close, a nr of trades went > off at the offer (spread at the time only 1/16) suggesting to me that there > were buyers that wanted to own the stock regardless. Other than pending Q4 > results, I am not aware of any news altho had an email from Bob Davis > suggesting that Pure World with symbol of PURL vice PURW may be acquiring > Aloette (ALET). As the acquiring firm if true, that wouldn't account for the > action. > > However, all that said, for those that have an interest in small and micro > caps, at least this one has decent CS elements and moving up on volume from > a reasonably lengthy base. > > Any statements or opinions are strictly my own and not that of my employer. > My comments should not be interpreted as a recommendation of any kind. I am > a licensed (inactive) broker and an active investor. All investors should do > their own research prior to any investment, especially one learned about on > the Internet. Hopefully my comments will better inform and educate all > investors. > tom w > > > - > > - - ------------------------------ Date: Fri, 13 Feb 1998 19:55:47 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Re: canslim-digest V2 #115 Welcome to the group, Mary. You're not the first to discover that after a few investments, whether successful or not, it's a great idea to go back and reread HTMMIS. I used to encourage my clients that were following CANSLIM practices to go back and reread the book every few months. I know each time I read it, I discover something I have missed in earlier readings, or a new experience that I previously couldn't apply. Feel free to post your questions or comments on what you learn, it's likely to help all of us. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Mary Keener To: canslim@lists.xmission.com Date: Friday, February 13, 1998 10:01 AM Subject: [CANSLIM] Re: canslim-digest V2 #115 >Hello Canslimers, > >Many, many thanks for all your valuable information, questions and some >debate. I've been investing for a few months with just a little >success due to my impatience and fear. However, I do follow the 8% >loss rule which has kept me on board, albeit a little shaky. After >deciding to stand back a little, re-read O'Neill's book, along with The >Nature of Risk by Justin Mamis and a few others, I'm doing a bit >better. > >The next reason I wanted to change my position as an observer here is >to suggest taking a good look at today's (2-13) investor's corner of >the IBD. It may answser some of your questions regarding charts, the >best time to buy and sell. I'm studying it via the stocks I've bought >to see where I went wrong exactly. It's given me a clearer idea even >though I have a long way to go. > >The best to you all. > >Mary Keener >McKeener@ix.netcom.com > >- > - - ------------------------------ Date: Sat, 14 Feb 1998 01:22:49 -0800 From: Mike Lucero Subject: [CANSLIM] GSMS GSMS broke above 35 on 12/29, out of an 11 week base, on lower-than-50-day-average volume. A couple weeks later, after hitting a closing high of around 37, it fell back into it's old base. Today (Friday), it broke above 35 again on higher than average volume. Is 35 still the pivot, or would it be 37, since it spent about a week up there? I guess for failures that didn't take long, I'd use the original pivot, while I'd be inclined to update this one to 37. What do you think? In a similar situation, I bought THRX Thursday when I thought it was bouncing back up. It closed right at 50 today. We'll see if it fails Tuesday. Thanks, Mike - - ------------------------------ End of canslim-digest V2 #116 ***************************** 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.