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Subject: canslim-digest V2 #1439
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canslim-digest         Tuesday, June 5 2001         Volume 02 : Number 1439



In this issue:

       RE: [CANSLIM] Chart Reading Art or Science?.......was CPRT
       Re: [CANSLIM] ENTG
       Re: [CANSLIM] mss-deal - news release
       Re: [CANSLIM] SRDX breaks out
       Re: [CANSLIM] WTSLA (Wet Seal)
       Re: [CANSLIM] BRL-an example of an faulty base?
       [CANSLIM] Direction of M
       [CANSLIM] FDS
       Re: [CANSLIM] FDS
       Re: [CANSLIM] The value of market orders
       [CANSLIM] 7-8% stops
       [CANSLIM] KG
       Re: [CANSLIM] FDS
       Re: [CANSLIM] 7-8% stops

----------------------------------------------------------------------

Date: Tue, 5 Jun 2001 21:07:54 -0400
From: "Jonathan Lien" <jonathanlien@hotmail.com>
Subject: RE: [CANSLIM] Chart Reading Art or Science?.......was CPRT

David,

Thanks for the tips on reading charts. I have saved your email for
future reference and study.

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of David Squires
Sent: Tuesday, June 05, 2001 8:35 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Chart Reading Art or Science?.......was CPRT


Norman,

> I wish you would have told me a purchase of WTSLA was doomed before I 
> got
in
> <grin>.

First, WTSLA is not doomed by any stretch... it just showed lower
probability warning signs on the way up its cup. The breakout came on
high volume so the market believes. It could very well go to the moon,
but it will go without me. ;-) Just watch the action of the stock from
here and INGORE my OPINION.

> Seriously, what do you mean by 'wedging' handles.  I thought a 
> downward sloping handle on low vol was desirable?

Your right about the desirable handle sloping down on low volume. What I
was saying is to avoid wedging handles. Wedging handles slope Up along
their price lows.

> And, I thought a capitulation in the base was good, i.e. a few
distribution
> days in the bottom of a cup.  Wouldn't this indicate a 'shakeout'?

Capitulation is great. However, a capitulation day will often also be a
reversal day, opening and trading lower only to close near its high. I
would view such a day as accumulation because somebody absorbed all the
supply and closed the stock strong. The same goes for high volume
marginally down days or narrow range days if they are at the bottom of
the base. These price and volume relationships tell you someone is
holding the stock UP.

> And, I have seen 1 of the members here say he looked for low vol on 
> the right side of the base.  I am less sure about the action in this 
> area.

IMO, this member must have been referring to the handle part of the
right side. Who in their right mind would want a light volume rally?


A graph of LNCR is here.(Jeff needs at least 15 minutes to upload it to
the
FTP)

ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/LNCR.gif

Dave




- ----- Original Message -----
From: "Norman" <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 05, 2001 6:37 AM
Subject: Re: [CANSLIM] Chart Reading Art or Science?.......was CPRT


> David,
>
>

>
>
>
> Norman Boyd
> theboyd@tisd.net
>
> ----- Original Message -----
> From: "David Squires" <dcsquires1@home.com>
> To: <canslim@lists.xmission.com>
> Sent: Monday, June 04, 2001 10:22 PM
> Subject: Re: [CANSLIM] Chart Reading Art or Science?.......was CPRT
>
>
> > Jonathan,
> >
> > To me there is no doubt chart reading is an art not a science. 
> > Pattern recognition can have many gray areas. In the end the pattern

> > name
doesn't
> > matter. What matters is that the pattern is sound. Here are a few 
> > things that increase the risk of any basing pattern.
> >
> > 1) Low Liquidity - Stocks that trade less that 75,000 shares daily 
> > can
get
> > knocked down hard by just one institutional seller.
> > 2) Wide & Loose Price Action - Look for bases with tight price 
> > action
when
> > they are consolidating especially in the handle area and bottom of 
> > the
> cup.
> > An example of a wide & loose stock is RTEC.
> > 3) Wedging Handles - Stay away from handles that wedge. They breed
faulty
> > breakouts.
> > 4) Base Distribution - Stay away from stocks that have large volume
spikes
> > on down days within the base. LNCR is an example.
> > 5) Light volume on the right side of the base - Be suspect of stocks
that
> > can't trade above their 50-day ADV on the way up the right side of 
> > the
> base.
> > These stocks are moving on the fumes of the last advance in most 
> > cases. WTSLA is an example.
> > 6) Volatile Handles - When a stock starts gyrating on the right side

> > of
> the
> > cup it is often a sign of a false breakout coming. WTSLA is a 
> > current example.
> >
> > These suggests don't mean a stock won't work it just means the
> probabilities
> > of it working drop. When I buy a stock I want all the odds in my 
> > favor.
> >
> > Good Trading,
> > DSquires
> >
> >
> >
> > ----- Original Message -----
> > From: "Jonathan Lien" <jonathanlien@hotmail.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Monday, June 04, 2001 7:27 PM
> > Subject: RE: [CANSLIM] CPRT
> >
> >
> > > Why does it seem that everyone has a different interpretation when

> > > reading charts?
> > >
> > > Is it more art than science?
> > >
> > > I am trying to get a "handle" on how to read charts more 
> > > accurately.
> > >
> > > -----Original Message-----
> > > From: owner-canslim@lists.xmission.com 
> > > [mailto:owner-canslim@lists.xmission.com] On Behalf Of David 
> > > Squires
> > > Sent: Monday, June 04, 2001 5:14 PM
> > > To: canslim@lists.xmission.com
> > > Subject: Re: [CANSLIM] CPRT
> > >
> > >
> > > Ann,
> > >
> > > I agree... it looks like a base on base formation on the daily 
> > > within
a
> > > larger, weekly cup and handle formation. That means the weekly and
daily
> > > both broke out of bullish patterns on volume. Let's see if M lets 
> > > CPRT strut its stuff!
> > >
> > > File attached
> > >
> > > DSquires
> > >
> > > ----- Original Message -----
> > > From: "Ann Hollingworth" <annholly@mediaone.net>
> > > To: <canslim@lists.xmission.com>
> > > Sent: Monday, June 04, 2001 3:20 PM
> > > Subject: Re: [CANSLIM] CPRT
> > >
> > > > I bought this morning, too. I thought the chart was a base on 
> > > > base. Ann
> > > > ----- Original Message -----
> > > > From: "Tim Fisher" <Tim@OreRockOn.com>
> > > > To: <canslim@lists.xmission.com>
> > > > Sent: Monday, June 04, 2001 12:55 PM
> > > > Subject: Re: [CANSLIM] CPRT
> > > >
> > > >
> > > > > 3 months ago, I would have agreed with you. Now that I am
convinced
> > > > > that highs older than 12 months ago are irrelevant, I see this

> > > > > as
a
> > > > > 2nd stage B/O from the pivot of 20 set in Jan, which was 
> > > > > exceeded
in
> > >
> > > > > April after a sloppy C&H. A drop from 26 to 12 is too steep 
> > > > > for a C&H anyway, it's a double bottom if you believe a 
> > > > > formation can
take
> > >
> > > > > 70+ weeks to develop, which I don't...
> > > > >
> > > > > On 09:07 AM 6/4/01, Eric Jaenike Said:
> > > > > >I tend to agree with the assertion that the c & h started in 
> > > > > >late Dec. 1999, handle starting May 2001, so base is quite 
> > > > > >long. Eric
> > > > > >--- Tim Fisher <Tim@OreRockOn.com> wrote:
> > > > > > > I liked it, BOT early when the vol went nuts. So far so 
> > > > > > > good, shorter base than I would like, but too many trains 
> > > > > > > have been leaving the station without me lately!
> > > > > > >
> > > > > > > On 08:14 AM 6/4/01, Steven Limbert Said:
> > > > > > >
> > > > > > > >Hello All,
> > > > > > > >
> > > > > > > >CPRT is making a run for it, any comments?
> > > > > > > >
> > > > > > > >
> > > > > > > >Thanks
> > > > > > > >SL
> > > > > > > >
> > > > > > > >
> > > > > > >
> > > > > >
>_________________________________________________________________
> > > > > > > >Get your FREE download of MSN Explorer at
> > > > > > > http://explorer.msn.com
> > > > > > > >
> > > > > > > >
> > > > > > > >-
> > > > > > > >-To subscribe/unsubscribe, email
> > > > > > > "majordomo@xmission.com"
> > > > > > > >-In the email body, write "subscribe canslim"
or -"unsubscribe
> > > > > > > >canslim".  Do not use quotes in your
> > > > > > > email.
> > > > > > >
> > > > > > > Tim Fisher
> > > > > > > Ore-Rock-On and Pacific Fishery Biologists WWW Sites
> > > > > > >
> > > > > > > Tim@OreRockOn.com
> > > > > > > WWW: http://OreRockOn.com
> > > > > > > See naked fish and rocks!
> > > > > > >
> > > > > > >
> > > > > > > -
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> > > > > >
> > > > > >
> > > > > >__________________________________________________
> > > > > >Do You Yahoo!?
> > > > > >Get personalized email addresses from Yahoo! Mail - only $35 
> > > > > >a year!  http://personal.mail.yahoo.com/
> > > > > >
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> > > > >
> > > > > Tim Fisher
> > > > > Ore-Rock-On and Pacific Fishery Biologists WWW Sites
> > > > >
> > > > > Tim@OreRockOn.com
> > > > > WWW: http://OreRockOn.com
> > > > > See naked fish and rocks!
> > > > >
> > > > >
> > > > > -
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> > >
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------------------------------

Date: Tue, 5 Jun 2001 21:14:47 EDT
From: BIKEAR@aol.com
Subject: Re: [CANSLIM] ENTG

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thanks

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<HTML><FONT FACE=arial,helvetica><FONT  SIZE=2>thanks</FONT></HTML>

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- -
- -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, 5 Jun 2001 21:48:26 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] mss-deal - news release

This is a multi-part message in MIME format.

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As I predicted, a wirehouse downgraded the stock.

And if that's the house, and I presume it is, that's been promoting it =
then they have a lot in client accts. The four blocks of 50K may have =
even come from house inventory.

Tom Worley
stkguru@netside.net
AIM: TexWorley

  ----- Original Message -----=20
  From: Norman=20
  To: canslim@lists.xmission.com=20
  Sent: Tuesday, June 05, 2001 8:36 PM
  Subject: Re: [CANSLIM] mss-deal - news release


  From a Dow Jones Newswires news release:

  NEW YORK (Dow Jones)--Measurement Specialties Inc.'s (MSS, news, msgs) =
fourth quarter earnings, reported late Monday, beat Wall Street's =
consensus estimate - yet Tuesday, the company's stock fell 20%.=20


  What spooked investors?=20


  The company, which makes electronic sensors and consumer products, =
reported unusually high customer-funded research and development costs =
for the fourth quarter, along with inventory levels more than three =
times higher than year-ago figures.=20


  Sidoti & Co. analyst John Franzreb blamed those items for the =
sell-off, which was punctuated by five block trades of up to 50,000 =
shares each.=20


  Measurement Specialties' Chief Executive Joseph Mallon said he's not =
concerned about his company's inventory levels, which stood at $31.9 =
million as of March 31 compared with $9.1 million the same time last =
year.=20


  "We've done a series of acquisitions, and in doing so, we moved the =
(company's) operations to China," Mallon told Dow Jones Newswires. "We =
built inventory ahead of doing that."=20


  The spike in inventories, however, alarmed Sidoti's Franzreb, who said =
it may reflect weakness in Measurement Specialties' Park-Zone product =
line. Those products help people park cars in garages by sensing how far =
the car is from the garage wall. Franzreb did attribute some of the =
inventory to the transfer of operations from the U.S. to China and the =
company's acquisitions.=20


  Mallon argued that the inventory build-up doesn't reflect poor sales =
in certain product lines, and believes that "generally business is quite =
good across the board."=20


  norm

    ----- Original Message -----=20
    From: Doug Shannon=20
    To: canslim@lists.xmission.com=20
    Sent: Tuesday, June 05, 2001 3:18 PM
    Subject: RE: [CANSLIM] mss-deal


    Fundies look good but group RS is only average with a C ranking and =
the 50 day is still below the 200 day MA.  I see it as a double bottom =
base that couldn't surpass the middle of the W at 27.13.  I guess you =
could also consider it to be a cup w/ handle starting on 1/26 and =
forming a handle starting 5/11 and broke out on 5/23 only to fail today. =
 Crashing thru the 50 day MA on very fast trade - one of WON's sell =
rules.  I would leave it alone.
    =20
    Doug
      -----Original Message-----
      From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of BIKEAR@aol.com
      Sent: Tuesday, June 05, 2001 3:18 PM
      To: canslim@lists.xmission.com
      Subject: Re: [CANSLIM] mss-deal


      what is the deal with mss and would if be too crazy to buy into =
this=20
      stock...everything looks good=20

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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content=3D"text/html; charset=3Diso-8859-1" =
http-equiv=3DContent-Type>
<META content=3D"MSHTML 5.00.2314.1000" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT size=3D2>As I predicted, a wirehouse downgraded the =
stock.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>And if that's the house, and I presume it is, that's =
been=20
promoting it then they have a lot in client accts. The four blocks of =
50K may=20
have even come from house inventory.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A href=3D"mailto:theboyd@tisd.net" =
title=3Dtheboyd@tisd.net>Norman</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
  href=3D"mailto:canslim@lists.xmission.com"=20
  title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, June 05, 2001 =
8:36=20
PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] mss-deal =
- - news=20
  release</DIV>
  <DIV><BR></DIV>
  <DIV>From a Dow Jones Newswires news release:</DIV>
  <DIV>&nbsp;</DIV>
  <DIV>
  <P>NEW YORK (Dow Jones)--Measurement Specialties Inc.'s (<A=20
  =
href=3D"http://www.quicken.com/investments/quotes/?symbol=3DMSS">MSS</A>,=
 <A=20
  =
href=3D"http://www.quicken.com/investments/news/?symbol=3DMSS">news</A>, =
<A=20
  =
href=3D"http://www.quicken.com/investments/discuss/?symbol=3DMSS">msgs</A=
>) fourth=20
  quarter earnings, reported late Monday, beat Wall Street's consensus =
estimate=20
  - yet Tuesday, the company's stock fell 20%. <BR>
  <P>What spooked investors? <BR></P>
  <P>The company, which makes electronic sensors and consumer products, =
reported=20
  unusually high customer-funded research and development costs for the =
fourth=20
  quarter, along with inventory levels more than three times higher than =

  year-ago figures. <BR></P>
  <P>Sidoti &amp; Co. analyst John Franzreb blamed those items for the =
sell-off,=20
  which was punctuated by five block trades of up to 50,000 shares each. =
<BR>
  <P>Measurement Specialties' Chief Executive Joseph Mallon said he's =
not=20
  concerned about his company's inventory levels, which stood at $31.9 =
million=20
  as of March 31 compared with $9.1 million the same time last year. =
<BR>
  <P>"We've done a series of acquisitions, and in doing so, we moved the =

  (company's) operations to China," Mallon told Dow Jones Newswires. "We =
built=20
  inventory ahead of doing that." <BR>
  <P>The spike in inventories, however, alarmed Sidoti's Franzreb, who =
said it=20
  may reflect weakness in Measurement Specialties' Park-Zone product =
line. Those=20
  products help people park cars in garages by sensing how far the car =
is from=20
  the garage wall. Franzreb did attribute some of the inventory to the =
transfer=20
  of operations from the U.S. to China and the company's acquisitions. =
<BR>
  <P>Mallon argued that the inventory build-up doesn't reflect poor =
sales in=20
  certain product lines, and believes that "generally business is quite =
good=20
  across the board." <BR>
  <P>norm</P></DIV>
  <BLOCKQUOTE dir=3Dltr=20
  style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
    <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
    <DIV=20
    style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
    <A href=3D"mailto:dshannon@austin.rr.com" =
title=3Ddshannon@austin.rr.com>Doug=20
    Shannon</A> </DIV>
    <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
    href=3D"mailto:canslim@lists.xmission.com"=20
    title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, June 05, 2001 =
3:18=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
mss-deal</DIV>
    <DIV><BR></DIV>
    <DIV><SPAN class=3D224461120-05062001><FONT color=3D#0000ff =
face=3DArial=20
    size=3D2>Fundies look good but group RS is only average with a C =
ranking and=20
    the 50 day is still below the 200 day MA.&nbsp; I see it as a double =
bottom=20
    base that couldn't surpass the middle of the W at 27.13.&nbsp; I =
guess you=20
    could also consider it to be a cup w/ handle starting on 1/26 and =
forming a=20
    handle starting 5/11 and broke out on 5/23 only to fail today.&nbsp; =

    Crashing thru the 50 day MA on very fast trade - one of WON's sell=20
    rules.&nbsp; I would leave it alone.</FONT></SPAN></DIV>
    <DIV><SPAN class=3D224461120-05062001><FONT color=3D#0000ff =
face=3DArial=20
    size=3D2></FONT></SPAN>&nbsp;</DIV>
    <DIV><SPAN class=3D224461120-05062001><FONT color=3D#0000ff =
face=3DArial=20
    size=3D2>Doug</FONT></SPAN></DIV>
    <BLOCKQUOTE>
      <DIV align=3Dleft class=3DOutlookMessageHeader dir=3Dltr><FONT =
face=3DTahoma=20
      size=3D2>-----Original Message-----<BR><B>From:</B>=20
      owner-canslim@lists.xmission.com=20
      [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20
      </B>BIKEAR@aol.com<BR><B>Sent:</B> Tuesday, June 05, 2001 3:18=20
      PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =

      [CANSLIM] mss-deal<BR><BR></FONT></DIV><FONT =
face=3Darial,helvetica><FONT=20
      size=3D2>what is the deal with mss and would if be too crazy to =
buy into=20
      this <BR>stock...everything looks good</FONT>=20
</FONT></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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------------------------------

Date: Tue, 05 Jun 2001 20:04:30 -0600
From: esetser <esetser@covad.net>
Subject: Re: [CANSLIM] SRDX breaks out

Personally, I place a LARGE amount of emphasis on the group.  I only look
at stocks in groups of at least "B" rating, and I give additional weighting
to the group RS in my own composite ranking.  I feel that a strong group is
a big part of the equation, and with everything else equal, increases the
odds of success.  We have one member that buys leading stocks in the groups
he sees moving up in strength, and says he has done very well with just this.

At 10:10 AM 6/5/01 -0400, you wrote:
>How much emphasis do you guys place on the groups technical and fundamental
>rating?
>
>According to IBD checkup, the Medical-Instruments group has a tech rating of
>D+ and a fundamental rating of D-.  Overall score for SRDX is an A which
>indicates to me that IBD does not place comparatively much weight on these
>ratings.
>
>This also makes me wonder why bother with this rating if it appears to have
>little effect on a stock's overall rating according to IBD stock checkup?
>
>I bring this up because I like the chart and the company and am also
>considering buying on a pullback.
>
>Andy
>----- Original Message -----
>From: "Norman" <theboyd@tisd.net>
>To: <canslim@lists.xmission.com>
>Sent: Tuesday, June 05, 2001 7:30 AM
>Subject: Re: [CANSLIM] SRDX breaks out
>
>
>> SRDX has been on and off my watch lists lately.  Not on this week.  For
>some
>> reason I always found a better candidate than SRDX.
>>
>> Norman
>> ----- Original Message -----
>> From: "Peter Christiansen" <peterc@loxinfo.co.th>
>> To: <canslim@lists.xmission.com>
>> Sent: Monday, June 04, 2001 10:03 PM
>> Subject: [CANSLIM] SRDX breaks out
>>
>>
>> > Anyone else looking at SRDX?  Strong breakout from a five week
>> > consolidation.  The RS line broke to new highs as well.  Missed the
>> > breakout today, but will watch for an orderly pullback.
>> >
>> > Peter
>> >
>> >
>> > -
>> > -To subscribe/unsubscribe, email "majordomo@xmission.com"
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------------------------------

Date: Tue, 05 Jun 2001 20:05:31 -0600
From: esetser <esetser@covad.net>
Subject: Re: [CANSLIM] WTSLA (Wet Seal)

Yes, WTSLA did make both the front page and the NASDAQ page (first stock).
I got in yesterday.

At 07:17 AM 6/5/01 -0700, you wrote:
>   Hey Tom,    I thought you didn't email during market hours.........and I
> thought you were headed off for a vacation?      already at 120% Avg
>Vol...........maybe we'll make the front page of IBD  today??   Good
>trading everyone   Perry          ----- Original Message -----    From:   
>Tom Worley       To: canslim@lists.xmission.com    Sent: Tuesday, June 05,
>2001 7:04  AM   Subject: Re: [CANSLIM] easi is it    late   
>   Not unless it drops a buck.       Besides, even at that price, it is
>already extended and you    would be chasing it.       Tom Worley
>stkguru@netside.net
>AIM:    TexWorley
>        ----- Original Message -----      From:      BIKEAR@aol.com        
>  To: canslim@lists.xmission.com           Sent: Tuesday, June 05, 2001
>9:44      AM     Subject: Re: [CANSLIM] easi is it      late     
>could I still get in      at 37.80 or is it too late  
>
> 

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Date: Tue, 05 Jun 2001 20:09:49 -0600
From: esetser <esetser@covad.net>
Subject: Re: [CANSLIM] BRL-an example of an faulty base?

I think the right side of the cup is the most important part, so I would
say BRL isn't bad.  If you look at the daily chart since the low in March,
there are roughly an equal number of up and down days on above average
volume.  However, it looks like the rest of the days give a nod to up days.
 It also seems to be reversing the trend with a strong up trend on higher
volume the last 2 weeks or so.  From a quantitative standpoint, DGO
confirms this with a 1.9 up/down ratio.

At 10:31 AM 6/5/01 -0400, you wrote:
>Would BRL be an example of a faulty base because is contains more down days
>and weeks on higher volume than up days and weeks on higher volume?
>
>Thanks,
>
>Doug
>
>
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Date: Tue, 5 Jun 2001 22:09:55 EDT
From: SKutney@aol.com
Subject: [CANSLIM] Direction of M

- --part1_71.df9f190.284eeaf3_boundary
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  I was wondering what others thought of the general directions of the market?

  IBD recently made a big deal about the "cup with handle"  pattern of the 
major indexes. I don't get the feel from reading the paper that they think 
the market is going down. They expect the 7% stop to just get you out.

I take that paper each day and draw in red trend lines to remind me of the 
general direction of the market. I see three major indexes plus the mutual 
fund index breaking past the current trend line on real low volume. I always 
thought that the stock market is like trying to keep a ball up in the air 
with a water hose. The greater the volume the more is will go up.  

I see stocks like CPN and SHFL which have been strong leaders breaking down. 
I see other stocks ready to break into new highs. 

Steve

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Content-Type: text/html; charset="US-ASCII"
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<HTML><FONT FACE=arial,helvetica><FONT  SIZE=2>
<BR>
<BR> &nbsp;I was wondering what others thought of the general directions of the market?
<BR>
<BR> &nbsp;IBD recently made a big deal about the "cup with handle" &nbsp;pattern of the 
<BR>major indexes. I don't get the feel from reading the paper that they think 
<BR>the market is going down. They expect the 7% stop to just get you out.
<BR>
<BR>I take that paper each day and draw in red trend lines to remind me of the 
<BR>general direction of the market. I see three major indexes plus the mutual 
<BR>fund index breaking past the current trend line on real low volume. I always 
<BR>thought that the stock market is like trying to keep a ball up in the air 
<BR>with a water hose. The greater the volume the more is will go up. &nbsp;
<BR>
<BR>I see stocks like CPN and SHFL which have been strong leaders breaking down. 
<BR>I see other stocks ready to break into new highs. 
<BR>
<BR>Steve</FONT></HTML>

- --part1_71.df9f190.284eeaf3_boundary--

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------------------------------

Date: Tue, 5 Jun 2001 20:36:52 -0700
From: "Jay Oken" <imjoken@mindspring.com>
Subject: [CANSLIM] FDS

This is a multi-part message in MIME format.

- ------=_NextPart_000_0129_01C0EDFF.410BA720
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	charset="iso-8859-1"
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Help please, anyone. Why isn't the trend on 5/11 to 5/21 considered the =
handle on this stock. I bought it on 5/22 thinking that this was the =
breakout from a c&h but now read in today's IBD that 5/24 was the pivot =
and today was the breakout. Obviously I got lucky but I want to =
understand why I was wrong.

- ------=_NextPart_000_0129_01C0EDFF.410BA720
Content-Type: text/html;
	charset="iso-8859-1"
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 5.50.4613.1700" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#f0e8d8>
<DIV><FONT face=3Darial,helvetica>Help please,&nbsp;anyone. Why isn't =
the trend on=20
5/11 to 5/21 considered the handle on this stock. I bought it on 5/22 =
thinking=20
that this was the breakout from a c&amp;h but now read in today's IBD =
that 5/24=20
was the pivot and today was the breakout. Obviously I got lucky but I =
want to=20
understand why I was wrong.</FONT></DIV></BODY></HTML>

- ------=_NextPart_000_0129_01C0EDFF.410BA720--


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Date: Tue, 5 Jun 2001 22:49:48 -0500
From: psych360@yahoo.com
Subject: Re: [CANSLIM] FDS

- --Apple-Mail-1172137822-9
Content-Transfer-Encoding: quoted-printable
Content-Type: text/plain;
	format=flowed;
	charset=iso-8859-1

I'm in agreement with your assessment.  The handle you mentioned was=20
definitely in the upper half of the base.  FDS had great volume on the=20=

5/22 breakout with 39 as the pivot.

In the few shaky days we had last week, it headed back toward the pivot=20=

on lower volume but never got closer than 40.  Of course today it showed=20=

its colors on good volume again.  You got a real good one in my=20
opinion.  I wish I was in it myself.

I don't think the IBD editors are infallible...

- -Darren

On Tuesday, June 5, 2001, at 10:36 PM, Jay Oken wrote:

> Help please,=A0anyone. Why isn't the trend on 5/11 to 5/21 considered =
the=20
> handle on this stock. I bought it on 5/22 thinking that this was the=20=

> breakout from a c&h but now read in today's IBD that 5/24 was the =
pivot=20
> and today was the breakout. Obviously I got lucky but I want to=20
> understand why I was wrong.

- --Apple-Mail-1172137822-9
Content-Transfer-Encoding: quoted-printable
Content-Type: text/enriched;
	charset=iso-8859-1

I'm in agreement with your assessment.  The handle you mentioned was
definitely in the upper half of the base.  FDS had great volume on the
5/22 breakout with 39 as the pivot.


In the few shaky days we had last week, it headed back toward the
pivot on lower volume but never got closer than 40.  Of course today
it showed its colors on good volume again.  You got a real good one in
my opinion.  I wish I was in it myself.


I don't think the IBD editors are infallible...


- -Darren


On Tuesday, June 5, 2001, at 10:36 PM, Jay Oken wrote:


<excerpt><fontfamily><param>Arial</param>Help please,=A0anyone. Why
isn't the trend on 5/11 to 5/21 considered the handle on this stock. I
bought it on 5/22 thinking that this was the breakout from a c&h but
now read in today's IBD that 5/24 was the pivot and today was the
breakout. Obviously I got lucky but I want to understand why I was
wrong.</fontfamily>

</excerpt>=

- --Apple-Mail-1172137822-9--

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------------------------------

Date: Tue, 5 Jun 2001 20:50:13 -0700 (PDT)
From: Kent Norman <kent_norman@yahoo.com>
Subject: Re: [CANSLIM] The value of market orders

I doubt one rule can apply to ALL stocks. You said it
has worked well for you in the past, celebrate and let
this be the one that got away. No shame there.

Kent Norman

- --- Dave Cameron <dfcameron@yahoo.com> wrote:
> 
> On learning the value of market orders:
> 
> Since I can't (as Tom recommends) trade an hour into
> the trading
> session, lately I've been entering limit orders -
> where my buy price
> is somewhere close to the previous day's close.   
> This has generally
> worked OK for me - because if the stock gaps either
> direction - I
> don't buy.
> 
> Well... David Ryan says this is a stupid idea.  
> This week, I'm
> starting to see why.   DFXI keeps running away from
> me.   Its 99/95,
> and broke out a few days back.   Each day it seems
> to open over $1
> higher than the previous days' close.
> 
> Just some insight...    
> 
> =====
> Dave Cameron
> dfcameron@yahoo.com
> 
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Date: Tue, 5 Jun 2001 20:51:24 -0700 (PDT)
From: Dave Cameron <dfcameron@yahoo.com>
Subject: [CANSLIM] 7-8% stops

A few people have mentioned the hard 7-8% stop as insurance against
taking a big loss. 

You know, I never use it.   Its not that I don't set a stop - but I
do it based on the chart - not on a percentage.   As an example,
suppose a stock has been basing between 25 and 30 for several months,
then breaks out to 33 on high volume.   If I bought at 33 (which is
higher than WON says to buy - but for those of us who can't trade
real-time...) my stop point would be 29.90 (I can't get used to
decimals yet).   Because this would put it back in the base.   All
right, its a 10% stop - but its common for a stock like this to drop
8-9% to say, 30.25 and then bounce back up.     Of course, if I were
fortunate enough to buy the same stock at 30.5, I'd still have a stop
at 29.90, and then have a 1-2% stop.    The percentage isn't relevant
- - the placement relative to the chart action is.

Anyone else have any thoughts?


=====
Dave Cameron
dfcameron@yahoo.com

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Date: Tue, 5 Jun 2001 20:55:34 -0700 (PDT)
From: Dave Cameron <dfcameron@yahoo.com>
Subject: [CANSLIM] KG

There have been some good picks lately.   I'd like to add one of my
own: KG.   High EPS/RS, strong group - recent move-up on high volume.
 Pharmaceuticals seem to be doing well.

While I'm at it, I agree with Earl that the group strength is very
important.   Oftentimes just being in the right sector is better than
picking the best stock in a mediocre sector.   I've seen many stocks
move up at once in a strong sector.   Right now, for all the IGT fans
here, look at PENN - same sector, not quite as strong a company - but
moving along with IGT.

=====
Dave Cameron
dfcameron@yahoo.com

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Date: Tue, 5 Jun 2001 22:21:55 -0600
From: "Patrick Wahl" <pwahl@prodigy.net>
Subject: Re: [CANSLIM] FDS

I think it could be considered a handle the way you see it, this one 
probably falls into the gray area of chart interpretation.  It formed a 
little hook near old highs (handle), spiked up on big volume on 
5/21, that could be considered a breakout from a cup and handle.  
As I may have said before, I think IBD sometimes uses hindsight to 
comment on things that may not have been so clear a few days 
earlier, that IBD themselves may have interpreted differently than 
they do only a few days later.  This is probably one of those times.

On 5 Jun 01, at 20:36, Jay Oken wrote:

> Help please, anyone. Why isn't the trend on 5/11 to 5/21 
considered the handle on this stock. I bought it on 5/22 thinking 
that this was the breakout from a c&h but now read in today's IBD 
that 5/24 was the pivot and today was the breakout. Obviously I got 
lucky but I want to understand why I was wrong. >  



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Date: Wed, 6 Jun 2001 01:04:11 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] 7-8% stops

Dave,

The problem I see is that you describe the base as ranging
between 25 and 30. Ideally you want the stop to be just under the
base, that means just under 25, not just under 30.  If a b/o
fails, you don't want to be stopped out in the base, esp the high
side of the base.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Dave Cameron <dfcameron@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 05, 2001 11:51 PM
Subject: [CANSLIM] 7-8% stops


A few people have mentioned the hard 7-8% stop as insurance
against
taking a big loss.

You know, I never use it.   Its not that I don't set a stop - but
I
do it based on the chart - not on a percentage.   As an example,
suppose a stock has been basing between 25 and 30 for several
months,
then breaks out to 33 on high volume.   If I bought at 33 (which
is
higher than WON says to buy - but for those of us who can't trade
real-time...) my stop point would be 29.90 (I can't get used to
decimals yet).   Because this would put it back in the base.
All
right, its a 10% stop - but its common for a stock like this to
drop
8-9% to say, 30.25 and then bounce back up.     Of course, if I
were
fortunate enough to buy the same stock at 30.5, I'd still have a
stop
at 29.90, and then have a 1-2% stop.    The percentage isn't
relevant
- - the placement relative to the chart action is.

Anyone else have any thoughts?


=====
Dave Cameron
dfcameron@yahoo.com

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