From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #217 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Wednesday, April 29 1998 Volume 02 : Number 217 In this issue: RE: [CANSLIM] A simple procedure for using intraday charts in BC. Re: [CANSLIM] Failed rally watch Re: [CANSLIM] A simple procedure for using intraday charts in BC. Re: [CANSLIM] Selling stocks with a profit. [CANSLIM] Economic Indicators Re: [CANSLIM] Selling stocks with a profit. RE: [CANSLIM] Question: stop orders for small caps Re: [CANSLIM] A simple procedure for using intraday charts in BC. Re: [CANSLIM] Question: stop orders for small caps RE: [CANSLIM] Question: stop orders for small caps Re: [CANSLIM] A simple procedure for using intraday charts in BC. Re: [CANSLIM] Off topic: Real-time quote service Re: [CANSLIM] Question: stop orders for small caps Re: [CANSLIM] A simple procedure for using intraday charts in BC. [CANSLIM] - Shorts [CANSLIM] Canslim site. Re: [CANSLIM] Selling stocks with a profit. Re: [CANSLIM] Selling stocks with a profit. [CANSLIM] Chapter 7 HTMMIS: Market Direction ---------------------------------------------------------------------- Date: Tue, 28 Apr 1998 10:06:01 -0400 From: Walter Prabhakar Subject: RE: [CANSLIM] A simple procedure for using intraday charts in BC. Can anyone tell me what OBV, MF and EMA stands for and how to interpret it ? Thanks, Walter Prabhakar. - - ------------------------------ Date: Tue, 28 Apr 1998 09:57:34 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Failed rally watch Good example of why it's important to be your "own" market commentator, and in times of turmoil make your "own" decisions instead of being whipsawed by the mkt and airhead commentators. Tom W - -----Original Message----- From: Ken Davidson To: canslim@lists.xmission.com Date: Tuesday, April 28, 1998 9:49 AM Subject: Re: [CANSLIM] Failed rally watch Pschology is interesting is'nt it Tom. One of the reasons the market is so strong this morning is that the Washington Post reported that yesterdays article from the WSJ is inacuarate as their sources say that no action will be taken at the next meeting! The article read: "New data may have eased the concerns that prompted Federal Reserve policymakers to drop their neutral stance on interest rates last month, the Washington Post reported Tuesday, quoting unnamed Fed sources. The newspaper quoted the sources as saying that the central bank=92s decision to =93lean=94 toward higher short-term rates at its March 31 meeting didn=92t necessarily mean that higher rates were on the way soon." This still sounds like higher rates are coming like everyone already knows but it has a nice twist to it to make people happy! Ken The information contained in this commentary is based upon data that is believed to be accurate, but is not guaranteed, and subject to change without notice. All projections, forecasts, opinions, and track records cannot be guaranteed to equal our past performance. Persons reading this are responsible for their actions. Officers and employees of this publication may at times have a position in the securities mentioned, or related services. >Dave, >What amazes me is that the mkt reacted as if the concept of further >tightening by the Feds was (or should have been) a surprise! There >have been numerous articles on this, and I am on record as well, >pointing out the chances of a Fed rate reduction as somewhat worse >than the proverbial snowball in Hades. Likewise, the "economic >slowing" expected from the Asian crises has clearly not developed as >domestic consumption has continued to grow. It doesn't take rocket >science to figure out that the bias of the Fed Reserve must be towards >tightening, not lowering, the rate. > >Yet, all of a sudden, one article in WSJ creates reality and >credibility!! > >The real question for me is whether this is an example of a WSJ "Deep >Throat" within the Fed Reserve system or, as some analysts already >speculated, a deliberate leak by the Feds to slow down the bond and >stock mkt since they cannot actually raise rates in light of the lack >of any inflationary data (and the political heat that would otherwise >result) along with continued and growing economic weakness in Asia. > >I remain on record: no change at the May FOMC meeting. Earliest action >cannot occur until the July meeting, and then only if sig inflationary >evidence has been reported by then. A continuation of high employment >won't suffice, nor will minor growth in the cost of labor. > >Tom W > >-----Original Message----- >From: Dave Cameron >To: canslim@lists.xmission.com >Date: Monday, April 27, 1998 11:13 PM >Subject: Re: [CANSLIM] Failed rally watch > > >>That's OK - I've often claimed I'm terrible at reading "M". The >only >>oddity about all this is that it seems driven by the article in the >WSJ. >>I'm still letting the stops do the work though. I remember a >similar >>down day on Greenspan's "Irrational Exuberance" comment. I sold out >>of EVERYTHING that day - ending up with several losses. The market >>had a one-day drop, I sold at the lows, and my stocks never looked >back. >> >>There is a slight difference to the recent exuberance in that there >has >>been faltering of late. When Greenspan railed about "Irrational >Exuberance" >>we seemed to be still charging up the hill. >> >>Bottom line: If today had been down like it was with no news (no >WSJ article), >> I'd be selling several under-performers. Since >there was this >> confounding factor, I'm sticking to my stops. >> >>Dave Cameron >> > > > >- > > - - - - ------------------------------ Date: Tue, 28 Apr 1998 10:26:55 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] A simple procedure for using intraday charts in BC. These are technical indicator terms. OBV = on balance volume, MF = money flow, EMA = exponential moving average (as opposed to SMA = simple moving average). You can use, and find, these as well as many more at www.bigcharts.com. Tom W - -----Original Message----- From: Walter Prabhakar To: 'canslim' Date: Tuesday, April 28, 1998 10:02 AM Subject: RE: [CANSLIM] A simple procedure for using intraday charts in BC. >Can anyone tell me what OBV, MF and EMA stands for and how to interpret >it ? >Thanks, >Walter Prabhakar. > > >- > - - ------------------------------ Date: Tue, 28 Apr 1998 09:10:20 -0700 From: "Robert Venchiarutti" Subject: Re: [CANSLIM] Selling stocks with a profit. In January, I remember very clearly committed to selling any where from a third to a half of my position whenever I was up over 20%. I did this about 4 times, then stopped. I'm not sure why I stopped. But I think that for the foreseeable future, I will sell a portion of my position when I am ahead 20% regardless, if only so I can get a minimum amount of profit to offset the inevitable losses that come up. I still wonder if anyone on this list regularly holds CANSLIM stocks for more than 6 months. If not, does that make us CANSLIM traders, rather than investors? This may seem like semantics, but I think its an important distinction that effects when we buy and sell, and why. For example, I think that part of the reason I stopped selling winners at 20% was because I really don't want to become a trader, looking to scalp my points and move on to the next trade. Not that 20% is really scalping, but if your going to sell for 20% gain after say 4 weeks, wouldn't it be better (and less risky) to sell for that first 10% gain in the first week, or that first 5% gain in the first day or two, and move on? I say this as a way of explaining my own bias toward holding stocks, rather than selling them on the way up. But, it seems to me that I should start selling some on the way up. If that is true, I probably should also change my frame of reference from that of an "investor" to that of an intermediate term trader. Why? Because that is the way CANSLIM works best. Of course, if everyone out there is holding stocks for gains that can actually be taxed as capital gains rather than ordinary income (long term v. short term gains), then I probably need to start thinking about this all over again:-) - -----Original Message----- From: DCSquires To: canslim@lists.xmission.com Date: Tuesday, April 28, 1998 5:53 AM Subject: Re: [CANSLIM] Selling stocks with a profit. >In a message dated 98-04-27 23:09:19 EDT, you write: > ><< What really gets under my > > skin is what happened to my other 2 stocks; namely, being up over 30%, and > > then being taken out by stops for gains of under 10%. >> > >Selling partial postions is a great alternative to this. If you sell a third >or half of your postion at a 20-25% gain it will keep your mind off the size >of your profit and let you focus on the price action for the balance of your >position. If you are watching price action and interpreting it right you will >usaully be on the right side of the trade. > >DSquires > >- > > - - ------------------------------ Date: Tue, 28 Apr 1998 14:14:46 -0400 From: "Tom Worley" Subject: [CANSLIM] Economic Indicators Anyone interested in understanding more about upcoming economic reports, and anticipating their affect on the market, just point your browser to http://www.pathfinder.com/money/features/datebook/ and browse away. Not only will it give you the calendar for the full month, but you can click on each day's report for an explanation of what it means. Tom W - - ------------------------------ Date: Tue, 28 Apr 1998 11:29:56 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Selling stocks with a profit. No, I don't, I have never had a pick that behaved that well, even MSFT= stopped me out after about 6 months. At 09:10 AM 4/28/98 , you wrote: > >I still wonder if anyone on this list regularly holds CANSLIM stocks for >more than 6 months.=A0 If not, does that make us CANSLIM traders, rather= than >investors?=A0=20 Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 28 Apr 1998 11:57:27 -0700 From: Mike Lucero Subject: RE: [CANSLIM] Question: stop orders for small caps I think the NASD looks at volatility. I know I couldn't place a stop-loss on PSFT last year, and it was really volatile at the time. Mike On Tuesday, April 28, 1998 6:54 AM, Tim Fisher [SMTP:tim@OreRockOn.com] wrote: > Just my $0.02, not that it will help you any. You get what you pay for. I > had 6 stops execute exactly as I specified yesterday on ESchwab. They have > only ever rejected on estop order, it wouldn't even let me enter it, and the > reason was that the NASD doesn't accept stop orders for some securities, > probably the problem you ran into. You won't get anywhere with them, I > mailed their site and got nothing back. I see no rhyme or reason for their > not accepting stops on just a few isuses, i.e. GART, which in this instance > is not nearly as small as many I have put stops on, i.e. MCRI. > > At 12:59 PM 4/28/98 +0300, you wrote: > >Upon purchasing TTILF, I set my 8% stop loss order. I use Suretrade, and the > >system accepted my stop order. Then, after the market came a tumblin down, I > >expected my stop to have been executed. To my surprise, the execution status > >was listed as "Rejected". Suretrade quickly responded to my letter, writing > >that I cannot set a stop order for small caps. > >Pardon my ignorance, but could someone explain what the connection is? Do > >all O/L brokers have the same policy? Why didn't I receive an error message > >* AS * I entered the stop order? (That is a question probably better suited > >for Suretrade, but perhaps you know) > > > >David > > > Tim Fisher, 1995 President, Pacific Fishery Biologists > Ore-ROCK-On Rockhounding Web Site > PFB Information > mailto:tim@orerockon.com > WWW http://OreRockOn.com > > > > - - ------------------------------ Date: Tue, 28 Apr 1998 14:01:05 -0500 From: Bill Daniels Subject: Re: [CANSLIM] A simple procedure for using intraday charts in BC. What would be the best EMA "period" to use with a 5-min/1-day chart? Connie Mack Rea wrote: > Members-- > > When you take a look at BigCharts, there is what seems a logical way to > look at intraday charts. Use the 5-minute time with the 1-day chart; > the 15-minute with the 2-day chart; and the 5-day with the hourly. > > The 5-minute-1-day chart gives you a nice reading about an intraday feel > for your stock, or the market. You can also bring to bear most of the > indicators [the NASDAQ doesn't have some readings for the lower chart] > for the Dow on the lower screen. > > The OBV/MF/EMA are pretty good markers for intraday movement. > > Here is trick one of the members of the university stock club does. Put > up a 5-minute 1-day chart of the Dow [INDU]. E.g., to see how the last > hour looked on the Volume+ indicator, he would do this. With a compass, > he would measure each of the red verticals and transfer that length to a > piece of paper. He would add them end to end so that he has one line > made up of however many reds there were for that hour. Do the same > with the green. In this way he has a two-line graph rather than an > incremental one. > > Then he takes a look at the OBV and MF for negative and positive > divergences.. And finally he checks the EMA to see if is responding > positively or negatively to the Volume+, the OBV, and the MF. It sounds > so obvious as to be simplistic. But don't knock it until you've run a > few checks. > > I've done a bit of day/swing trading by using just these indicators for > these periods. > > Connie Mack > > - - - ------------------------------ Date: Tue, 28 Apr 1998 11:30:35 -0700 From: Steve Subject: Re: [CANSLIM] Question: stop orders for small caps Schwab accepts stops and stop limit orders on OTC stocks. Great executions too. Friday I sold 1000 STII, market order, and the fill came back in the middle of the spread, thus paying the commission. When this happens, the fill message brags: "Price Improvement! you saved $X" Also, there is no foolishness about having to cancel a stop order before entering a sell. Just enter the sell order and it executes. Trades are $29.95, mkt., stop or limit but I'll bet they will come down since their big competition, Fidelity, is $19.95 now, $22.95 limit. Steve Grier scg@sirius.com - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Tuesday, April 28, 1998 5:56 AM Subject: Re: [CANSLIM] Question: stop orders for small caps >Not that many firms, whether online or not, will accept stop loss or >stop limit orders on NASDAQ stocks. You are correct, the system should >have prevented the entry entirely with an error message at the time, >at least then you would have known. Obviously a weakness in their >order entry software. There are some online firms (I think Datek is >one) that will accept stop orders on OTC stocks. > >Tom W > >-----Original Message----- >From: David S. Pinhasik >To: canslim@lists.xmission.com >Date: Tuesday, April 28, 1998 6:00 AM >Subject: [CANSLIM] Question: stop orders for small caps > > >>Upon purchasing TTILF, I set my 8% stop loss order. I use Suretrade, >and the >>system accepted my stop order. Then, after the market came a tumblin >down, I >>expected my stop to have been executed. To my surprise, the execution >status >>was listed as "Rejected". Suretrade quickly responded to my letter, >writing >>that I cannot set a stop order for small caps. >>Pardon my ignorance, but could someone explain what the connection >is? Do >>all O/L brokers have the same policy? Why didn't I receive an error >message >>* AS * I entered the stop order? (That is a question probably better >suited >>for Suretrade, but perhaps you know) >> >>David >> >> >>- >> > > >- > > - - ------------------------------ Date: Tue, 28 Apr 1998 12:43:49 -0700 From: Mike Lucero Subject: RE: [CANSLIM] Question: stop orders for small caps Unless they've changed recently, you still have to manually cancel your stop order if you sell the stock. They did cancel one for me once, but they sent me email saying I had mistakenly sold the stock without cancelling the stop, and would have been responsible if it had been hit. Mike On Tuesday, April 28, 1998 11:31 AM, Steve [SMTP:scg@sirius.com] wrote: > Schwab accepts stops and stop limit orders on OTC stocks. Great executions > too. Friday I sold 1000 STII, market order, and the fill came back in the > middle of the spread, thus paying the commission. When this happens, the > fill message brags: "Price Improvement! you saved $X" > > Also, there is no foolishness about having to cancel a stop order before > entering a sell. Just enter the sell order and it executes. Trades are > $29.95, mkt., stop or limit but I'll bet they will come down since their big > competition, Fidelity, is $19.95 now, $22.95 limit. > > Steve Grier > scg@sirius.com > > > > -----Original Message----- > From: Tom Worley > To: canslim@lists.xmission.com > Date: Tuesday, April 28, 1998 5:56 AM > Subject: Re: [CANSLIM] Question: stop orders for small caps > > > >Not that many firms, whether online or not, will accept stop loss or > >stop limit orders on NASDAQ stocks. You are correct, the system should > >have prevented the entry entirely with an error message at the time, > >at least then you would have known. Obviously a weakness in their > >order entry software. There are some online firms (I think Datek is > >one) that will accept stop orders on OTC stocks. > > > >Tom W > > > >-----Original Message----- > >From: David S. Pinhasik > >To: canslim@lists.xmission.com > >Date: Tuesday, April 28, 1998 6:00 AM > >Subject: [CANSLIM] Question: stop orders for small caps > > > > > >>Upon purchasing TTILF, I set my 8% stop loss order. I use Suretrade, > >and the > >>system accepted my stop order. Then, after the market came a tumblin > >down, I > >>expected my stop to have been executed. To my surprise, the execution > >status > >>was listed as "Rejected". Suretrade quickly responded to my letter, > >writing > >>that I cannot set a stop order for small caps. > >>Pardon my ignorance, but could someone explain what the connection > >is? Do > >>all O/L brokers have the same policy? Why didn't I receive an error > >message > >>* AS * I entered the stop order? (That is a question probably better > >suited > >>for Suretrade, but perhaps you know) > >> > >>David > >> > >> > >>- > >> > > > > > >- > > > > > > > > > - - ------------------------------ Date: Tue, 28 Apr 1998 16:18:10 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] A simple procedure for using intraday charts in BC. Afternoon Bill-- Thanks for the question. This is my take on intraday charting. Remember, you're swimming in scalding market water when you work with EMAs on any of the intraday charts I mentioned. Things are happening not a mile a minute, but a mile a second. Orders you put in are as likely not to be filled as you wish [market orders] or not filled at all [stop orders]. Take a look at your stock on a Time and Sales calendar to see what is happening. Unless you're day trading or swing trading, the intraday charts won't help much, except in one instance. But it's that one instance that is most useful for Canslim. Once the investor has chosen a stock and all that holds him back is an entry point, the intraday charts will help him get in safely [if that's ever possible]. Look first at a 5-day chart. Where are the support and resistance lines? Are there secondary support and resistance lines? Check the time of day for coinciding points when price and resistance/support come together. The trading day has a personality that every trader knows about. Once done, turn to a 1-day 5-minute chart and let the 3/7/10 EMA choose your entry point for you. This EMA [BC's default EMA is 5/10/15] is a scaldingly fast with an afterburner. BC's is near super-sonic. Many traders use a 20/50/200 and respectively call these numbers fast, intermediate, and slow. Many traders, and trading/investing newsletters, work from just OBV or some kind of Volume/Accumulation indicator. BC has at least three that I look at. But MF also has significance when combined with volume indicators. Sometimes a little money can effect big changes in price; sometimes a little volume can effect big changes in price. Think of all the permutations between just MF and price. Think of all the permutations between OBV and price. Now consider the permutations among OBV/MF/Price. There are more than just the six [3x2x1], for each has its own incremental variations of weak and strong, of high and low, of fast and slow. Now add an EMA. There are more than just the permutations on four, because the EMAs have hundreds of variations. What you end with are not just permutations as you would with integers, but permutations in which each integer has internal permutations. These non-plusing variations are what prompts me to say that the trader and investor can get too cute with indicators. You finally refine the significance out of the instrument. When you deal with intraday charts, you are approaching over-refinement. Bill, there is no one answer to your question. I use the 3/7/10 for almost all EMA readings. And there is not much difference between BC's default of 5/10/15. Both are scalders. But both are useful on intraday charts for finding an entry point because entry points are infrequent searches. Used this way, they are not so dangerous, because you're using them for just this one thing, finding an entry point. They are, of course, equally good for finding an exit. Used for day trading or swing trading, the scalding EMAs will jerk you around like Bill Clinton jerks around Ken Starr. Hang onto your socks and knee pads--and keep your head down and mouth closed. Connie Mack Bill Daniels wrote: > What would be the best EMA "period" to use with a 5-min/1-day chart? > > Connie Mack Rea wrote: > > > Members-- > > > > When you take a look at BigCharts, there is what seems a logical way > to > > look at intraday charts. Use the 5-minute time with the 1-day > chart; > > the 15-minute with the 2-day chart; and the 5-day with the hourly. > > > > The 5-minute-1-day chart gives you a nice reading about an intraday > feel > > for your stock, or the market. You can also bring to bear most of > the > > indicators [the NASDAQ doesn't have some readings for the lower > chart] > > for the Dow on the lower screen. > > > > The OBV/MF/EMA are pretty good markers for intraday movement. > > > > Here is trick one of the members of the university stock club does. > Put > > up a 5-minute 1-day chart of the Dow [INDU]. E.g., to see how the > last > > hour looked on the Volume+ indicator, he would do this. With a > compass, > > he would measure each of the red verticals and transfer that length > to a > > piece of paper. He would add them end to end so that he has one > line > > made up of however many reds there were for that hour. Do the same > > > with the green. In this way he has a two-line graph rather than an > > incremental one. > > > > Then he takes a look at the OBV and MF for negative and positive > > divergences.. And finally he checks the EMA to see if is responding > > > positively or negatively to the Volume+, the OBV, and the MF. It > sounds > > so obvious as to be simplistic. But don't knock it until you've run > a > > few checks. > > > > I've done a bit of day/swing trading by using just these indicators > for > > these periods. > > > > Connie Mack > > > > - > > - - - ------------------------------ Date: Tue, 28 Apr 1998 16:39:25 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] Off topic: Real-time quote service Surindra-- Nice sites for real-time quotes. My stock club members needed a couple of places to go when the usual breakdowns occur. Connie Mack Surindra Singh wrote: > Some of the free real time quotes you might like to try: > > http://www.freerealtime.com > > http://www.marketguide.com/RTQ/ > > http://www.pathfinder.com/money/rtq/index.html > > http://www.thomsonrtq.com > > These are some of the one I use. You might have to register. Let me > know if > there is any problem with the address. > > Surindra > > :-----Original Message----- > :From: owner-canslim@lists.xmission.com > :[mailto:owner-canslim@lists.xmission.com]On Behalf Of Johan Van > Houtven > :Sent: Monday, April 27, 1998 11:13 AM > :To: canslim@lists.xmission.com > :Subject: [CANSLIM] Off topic: Real-time quote service > : > : > :Anyone out there that can recommend a good RT quote service? > : > :Interquote where down this AM and now are displaying approx 10 min > delayed > :quotes. > : > : > : > :--- Johan Van Houtven > : > : > : > :- > : > : > > - - - ------------------------------ Date: Tue, 28 Apr 1998 19:05:30 -0400 From: "Gary M. Pess" Subject: Re: [CANSLIM] Question: stop orders for small caps I also use ESchwab and have been very satisfied. I think it's worth the few extra bucks ($29.95) All my stops went through as planned yesterday (all went within .125 of my stop except FNM which got sold at 1 below my stop). Schwab lets you know when you can't put a stop on a security (like BBBY). Gary M. Pess Handman Tim Fisher wrote: > Just my $0.02, not that it will help you any. You get what you pay for. I > had 6 stops execute exactly as I specified yesterday on ESchwab. They have > only ever rejected on estop order, it wouldn't even let me enter it, and the > reason was that the NASD doesn't accept stop orders for some securities, > probably the problem you ran into. You won't get anywhere with them, I > mailed their site and got nothing back. I see no rhyme or reason for their > not accepting stops on just a few isuses, i.e. GART, which in this instance > is not nearly as small as many I have put stops on, i.e. MCRI. > > At 12:59 PM 4/28/98 +0300, you wrote: > >Upon purchasing TTILF, I set my 8% stop loss order. I use Suretrade, and the > >system accepted my stop order. Then, after the market came a tumblin down, I > >expected my stop to have been executed. To my surprise, the execution status > >was listed as "Rejected". Suretrade quickly responded to my letter, writing > >that I cannot set a stop order for small caps. > >Pardon my ignorance, but could someone explain what the connection is? Do > >all O/L brokers have the same policy? Why didn't I receive an error message > >* AS * I entered the stop order? (That is a question probably better suited > >for Suretrade, but perhaps you know) > > > >David > > > Tim Fisher, 1995 President, Pacific Fishery Biologists > Ore-ROCK-On Rockhounding Web Site > PFB Information > mailto:tim@orerockon.com > WWW http://OreRockOn.com > > - - - ------------------------------ Date: Tue, 28 Apr 1998 19:10:45 -0400 From: "Gary M. Pess" Subject: Re: [CANSLIM] A simple procedure for using intraday charts in BC. Walt, Two great places to learn: Technical Analysis from A to Z http://www.equis.com/cgi-bin/taazsearch.cgi Bigcharts.com - look at "Chart Help" after drawing a chart http://www.bigcharts.com Gary M. Pess Handman Walter Prabhakar wrote: > Can anyone tell me what OBV, MF and EMA stands for and how to interpret > it ? > Thanks, > Walter Prabhakar. > > - - - ------------------------------ Date: Tue, 28 Apr 1998 19:16:21 -0400 From: "Tony Austin" Subject: [CANSLIM] - Shorts For those who may wish to consider a short. SRA - Sitting just above short term support at 42.5. Support near 42 may result in a slight upward bounce in the morning, which would be the time to sell it short. TSV has turned very negative. Support will not likely hold. Target will be near 31. Be careful with your stop. Entering a short below resistance leaves room for an unwanted upward bounce. DISH - Had strong day running up near upper resistance, closing at 26. Given current market, today not withstanding, a break above 27 7/8 would be a surprise. Consider shorting near 27 1/2. Protective stop at 28 7/8, initial target at 20, however, a continued negative market could run it down to near 17. I has run up very fast from 17 to 27. Might run down easily as well, as it has a history of doing. SPY - TSV is pronounsly negative. Todays slight bounce may be an opportunity to enter a short position. Regards, Tony - - ------------------------------ Date: Tue, 28 Apr 1998 22:10:50 -0400 From: Connie Mack Rea Subject: [CANSLIM] Canslim site. Members-- I came upon this site while looking at sites for myself. I've no opinion. Just happened to see it was dedicated to Canslim. http://stockguide.com/canslim.htm Connie Mack - - ------------------------------ Date: Tue, 28 Apr 1998 21:16:52 -0500 From: Anthony Ku Subject: Re: [CANSLIM] Selling stocks with a profit. This is a cryptographically signed message in MIME format. - --------------msF1C08A4D56963005075EBA5F Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit You mean 10% don't you? 100% seems to be a bit excessive :) I mean, chances are you will run into several weakness in the stock before it will hit 100%, it rarely goes up on a straight line without some sort of a correction (to that magnitude). Tom Worley wrote: > > I have a firm personal rule, and one of the few that I follow > fanatically, that I MUST sell at least half of a position at the FIRST > sign of weakness once I am up at least 100%. You could use something > similar for any other percentage gain in which you can be happy about > the profit and not later beat yourself up if the stock continues > higher. WON has been fairly clear on selling when you are up 20% both > to build up portfolio profits as well as personal confidence. The > tough part of it is not getting upset when you see the stock go even > higher and start mentally calculating all the profits you left on the > table. > > Tom W > > -----Original Message----- > From: DCSquires > To: canslim@lists.xmission.com > Date: Tuesday, April 28, 1998 8:50 AM > Subject: Re: [CANSLIM] Selling stocks with a profit. > > >In a message dated 98-04-27 23:09:19 EDT, you write: > > > ><< What really gets under my > > > skin is what happened to my other 2 stocks; namely, being up over > 30%, and > > > then being taken out by stops for gains of under 10%. >> > > > >Selling partial postions is a great alternative to this. If you sell > a third > >or half of your postion at a 20-25% gain it will keep your mind off > the size > >of your profit and let you focus on the price action for the balance > of your > >position. If you are watching price action and interpreting it right > you will > >usaully be on the right side of the trade. > > > >DSquires > > > >- > > > > - - --------------msF1C08A4D56963005075EBA5F Content-Type: application/x-pkcs7-signature; name="smime.p7s" Content-Transfer-Encoding: base64 Content-Disposition: attachment; filename="smime.p7s" Content-Description: S/MIME Cryptographic Signature MIIJxgYJKoZIhvcNAQcCoIIJtzCCCbMCAQExCzAJBgUrDgMCGgUAMAsGCSqGSIb3DQEHAaCC CDQwggN+MIIC56ADAgECAhAVrgiVw//UFr5w4H/0bnbsMA0GCSqGSIb3DQEBBAUAMGIxETAP BgNVBAcTCEludGVybmV0MRcwFQYDVQQKEw5WZXJpU2lnbiwgSW5jLjE0MDIGA1UECxMrVmVy aVNpZ24gQ2xhc3MgMSBDQSAtIEluZGl2aWR1YWwgU3Vic2NyaWJlcjAeFw05ODA0MTIwMDAw MDBaFw05ODA2MTEyMzU5NTlaMIIBBTERMA8GA1UEBxMISW50ZXJuZXQxFzAVBgNVBAoTDlZl cmlTaWduLCBJbmMuMTQwMgYDVQQLEytWZXJpU2lnbiBDbGFzcyAxIENBIC0gSW5kaXZpZHVh bCBTdWJzY3JpYmVyMUYwRAYDVQQLEz13d3cudmVyaXNpZ24uY29tL3JlcG9zaXRvcnkvQ1BT IEluY29ycC4gYnkgUmVmLixMSUFCLkxURChjKTk2MSYwJAYDVQQLEx1EaWdpdGFsIElEIENs YXNzIDEgLSBOZXRzY2FwZTETMBEGA1UEAxMKQW50aG9ueSBLdTEcMBoGCSqGSIb3DQEJARYN YWt1QGZsYXNoLm5ldDBcMA0GCSqGSIb3DQEBAQUAA0sAMEgCQQCtbGn4BjKJsB3XwU86M3c9 Z3OmQ69oG7cmIZ4Cy4FQDLUNiu4OdObOOsWDKV0LXDjjktbBykgL7Wi56Y42vjeRAgMBAAGj gdMwgdAwCQYDVR0TBAIwADCBrwYDVR0gBIGnMIAwgAYLYIZIAYb4RQEHAQEwgDAoBggrBgEF BQcCARYcaHR0cHM6Ly93d3cudmVyaXNpZ24uY29tL0NQUzBiBggrBgEFBQcCAjBWMBUWDlZl cmlTaWduLCBJbmMuMAMCAQEaPVZlcmlTaWduJ3MgQ1BTIGluY29ycC4gYnkgcmVmZXJlbmNl IGxpYWIuIGx0ZC4gKGMpOTcgVmVyaVNpZ24AAAAAAAAwEQYJYIZIAYb4QgEBBAQDAgeAMA0G CSqGSIb3DQEBBAUAA4GBAFQax9Cc6mwfGrSXt/akIbTS2ZndSndcPDXnVDWxbFNVAkrpxAx9 yb2FNCIIkBiE8g2Ri/jtC0PwQXPmfVV0q0iS8+Xoch8j0vpKLDj1qy0XnNV7/PYWCvJ87+LT gKAUHzFX3dTC8iIW4a31rKKfk1DCECQ+z+TuLdm2fKpbz6fwMIICeTCCAeKgAwIBAgIQUh81 HfJwfgArvspZhwTVOTANBgkqhkiG9w0BAQIFADBfMQswCQYDVQQGEwJVUzEXMBUGA1UEChMO VmVyaVNpZ24sIEluYy4xNzA1BgNVBAsTLkNsYXNzIDEgUHVibGljIFByaW1hcnkgQ2VydGlm aWNhdGlvbiBBdXRob3JpdHkwHhcNOTYwNjI3MDAwMDAwWhcNOTkwNjI3MjM1OTU5WjBiMREw DwYDVQQHEwhJbnRlcm5ldDEXMBUGA1UEChMOVmVyaVNpZ24sIEluYy4xNDAyBgNVBAsTK1Zl cmlTaWduIENsYXNzIDEgQ0EgLSBJbmRpdmlkdWFsIFN1YnNjcmliZXIwgZ8wDQYJKoZIhvcN AQEBBQADgY0AMIGJAoGBALYUps9N0AUN2Moj0G+qtCmSY44s+G+W1y6ddksRsTaNV8nD/RzG uv4eCLozypXqvuNbzQaot3kdRCrtc/KxUoNoEHBkkdc+a/n3XZ0UQ5tul0WYgUfRLcvdu3LX TD9xquJA8lQ5vBbuz3zsuts/bCqzFrGGEp2ukzTVuNXQ9z6pAgMBAAGjMzAxMA8GA1UdEwQI MAYBAf8CAQEwCwYDVR0PBAQDAgEGMBEGCWCGSAGG+EIBAQQEAwIBBjANBgkqhkiG9w0BAQIF AAOBgQDB+vcC51fKEXXGnAz6K3dPh0UXO+PSwdoPWDmOrpWZA6GooTj+eZqTFwuXhjnHymg0 ZrvHiEX2yAwF7r6XJe/g1G7kf512XM59uhSirguf+2dbSKVnJa8ZZIj2ctgpJ6o3EmqxKK8n gxhlbI3tQJ5NxHiohuzpLFC/pvkN27CmSjCCAjEwggGaAgUCpAAAATANBgkqhkiG9w0BAQIF ADBfMQswCQYDVQQGEwJVUzEXMBUGA1UEChMOVmVyaVNpZ24sIEluYy4xNzA1BgNVBAsTLkNs YXNzIDEgUHVibGljIFByaW1hcnkgQ2VydGlmaWNhdGlvbiBBdXRob3JpdHkwHhcNOTYwMTI5 MDAwMDAwWhcNOTkxMjMxMjM1OTU5WjBfMQswCQYDVQQGEwJVUzEXMBUGA1UEChMOVmVyaVNp Z24sIEluYy4xNzA1BgNVBAsTLkNsYXNzIDEgUHVibGljIFByaW1hcnkgQ2VydGlmaWNhdGlv biBBdXRob3JpdHkwgZ8wDQYJKoZIhvcNAQEBBQADgY0AMIGJAoGBAOUZv22jVmEtmUhx9mfe uY3rt56GgAqRDvo4Ja9GiILlc6igmyRdDR/MZW4MsNBWhBiHmgabEKFz37RYOWtuwfYV1aio P6oSBo0xrH+wNNePNGeICc0UEeJORVZpH3gCgNrcR5EpuzbJY1zF4Ncth3uhtzKwezC6Ki8x qu6jZ9rbAgMBAAEwDQYJKoZIhvcNAQECBQADgYEAUnO6mlXc3D+CfbCQmGIqgkx2AG4lPdXC CXBXAQwPdx8YofscYA6gdTtJIUH+p1wtTEJJ0/8o2Izqnf7JB+J3glMj3lXzzkST+vpMvco2 81tmsp7I8gxeXtShtCEJM8o7WfySwjj8rdmWJOAt+qMp9TNoeE60vJ9pNeKomJRzO8QxggFa MIIBVgIBATB2MGIxETAPBgNVBAcTCEludGVybmV0MRcwFQYDVQQKEw5WZXJpU2lnbiwgSW5j LjE0MDIGA1UECxMrVmVyaVNpZ24gQ2xhc3MgMSBDQSAtIEluZGl2aWR1YWwgU3Vic2NyaWJl cgIQFa4IlcP/1Ba+cOB/9G527DAJBgUrDgMCGgUAoH0wGAYJKoZIhvcNAQkDMQsGCSqGSIb3 DQEHATAcBgkqhkiG9w0BCQUxDxcNOTgwNDI5MDIxNjUzWjAeBgkqhkiG9w0BCQ8xETAPMA0G CCqGSIb3DQMCAgEoMCMGCSqGSIb3DQEJBDEWBBRd1HcpqMCCXr0ux8X2zEzr9CVdzzANBgkq hkiG9w0BAQEFAARAD+MEr/h/NH+5wsoqihTIzpVPSlSdQ7uvmyxMQD61ghFkOux5oEWEnmJc WMn5wjH19VJtqLxr0n1GwpIRuDHLhw== - --------------msF1C08A4D56963005075EBA5F-- - - ------------------------------ Date: Wed, 29 Apr 1998 06:11:26 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Selling stocks with a profit. No, Anthony, I did mean one hundred percent, that's why I fanactically force myself to sell at least half on any weakness at all. I've had several stocks that have done this well, including my personal best that tripled the same day I bot it (I had been watching it for over a year!). By selling half (or more) I take my money invested off the table and can continue to play the stock with someone else's money for my profits. Over the past three months, I have become more aggressive at taking profits on any weakness (including selling if it just starts to base after a strong, fast move) once I am up over 20%. For me, a lot of this decision depends on how good was my entry point, how good the nearest support base, and how fast it moved up this much. On a stock like EDAC which has moved up steadily, then gone into a base, I am more willing to hold for future gains. Two examples of stocks that hammered this lesson home because I didn't sell when they moved too fast are MSON and SOCR last year (I simply got greedy). On the other hand, you can end up leaving a lot of money on the table, as I did on PURW after it made a quick recovery to give me a nice profit, then started a short base before moving again. I missed the second leg of the move. Tom W - -----Original Message----- From: Anthony Ku To: canslim@lists.xmission.com Date: Tuesday, April 28, 1998 10:21 PM Subject: Re: [CANSLIM] Selling stocks with a profit. >You mean 10% don't you? 100% seems to be a bit excessive :) I mean, >chances are you will run into several weakness in the stock before it >will hit 100%, it rarely goes up on a straight line without some sort of >a correction (to that magnitude). > >Tom Worley wrote: >> >> I have a firm personal rule, and one of the few that I follow >> fanatically, that I MUST sell at least half of a position at the FIRST >> sign of weakness once I am up at least 100%. You could use something >> similar for any other percentage gain in which you can be happy about >> the profit and not later beat yourself up if the stock continues >> higher. WON has been fairly clear on selling when you are up 20% both >> to build up portfolio profits as well as personal confidence. The >> tough part of it is not getting upset when you see the stock go even >> higher and start mentally calculating all the profits you left on the >> table. >> >> Tom W >> >> -----Original Message----- >> From: DCSquires >> To: canslim@lists.xmission.com >> Date: Tuesday, April 28, 1998 8:50 AM >> Subject: Re: [CANSLIM] Selling stocks with a profit. >> >> >In a message dated 98-04-27 23:09:19 EDT, you write: >> > >> ><< What really gets under my >> > > skin is what happened to my other 2 stocks; namely, being up over >> 30%, and >> > > then being taken out by stops for gains of under 10%. >> >> > >> >Selling partial postions is a great alternative to this. If you sell >> a third >> >or half of your postion at a 20-25% gain it will keep your mind off >> the size >> >of your profit and let you focus on the price action for the balance >> of your >> >position. If you are watching price action and interpreting it right >> you will >> >usaully be on the right side of the trade. >> > >> >DSquires >> > >> >- >> > >> >> - - - ------------------------------ Date: Wed, 29 Apr 1998 15:16:53 +0200 From: Johan Van Houtven Subject: [CANSLIM] Chapter 7 HTMMIS: Market Direction I'm rereading chapter 7. It's hard to believe, but every time I reread it, I find something new. Quote: "General market top reversals are usually late signal-the last straw before the cave-in." Aha! We do not want to wait for LATE signals, do we. Not if can avoid it... "In most cases, distribution or selling in individual market leaders has, for days or even weeks, preceded the approaching market break. " I saw it in IMRS, IONAY & HDWY. Anyone else has some more examples of market leaders that did or did not start to sell-of before the market top? "Use of individual stock selling rules...should lead you to sell one or two of your stocks on the way up just prior to the general market peak." So based on WON's individual stock selling rules (and there are many!) you should have already sold 1 or 2 of your stocks BEFORE the general market top. I assume that would be the case if you were holding market leaders. And market leaders is what you should be holding as a CANSLIMer. WON says (somewhere else in HTMMIS) you would typically hold 4 to 5 stocks. So if you already sold 1 or 2 BEFORE the market top, you would be approx 20 to 50% in cash before the general market top. After that further selling is advisable if you recognize weak rallies, says WON on p. 46. "Recognizing when the market has hit a top or bottom out is 50% of the whole complicated ball game. It is also the key investing skill that all-too-many professional and amateur investors seem to lack." So in my mind, I'd say, this is the time to start looking (NOT buying) for the stocks that hold up best, the potential leaders for the next leg up. Comments welcome. - --- Johan Van Houtven - - ------------------------------ End of canslim-digest V2 #217 ***************************** 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.