From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #267 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 Thursday, June 4 1998 Volume 02 : Number 267 In this issue: [CANSLIM] A/D [CANSLIM] Re: Head and Shoulders for the Nasdaq composite [CANSLIM] Re: (CANSLIM) [CANSLIM] 10-line EMA Re: [CANSLIM] A/D Re: [CANSLIM] Re: Head and Shoulders for the Nasdaq composite Re: [CANSLIM] 10-line EMA Re: [CANSLIM] A/D Re: [CANSLIM] Re: Head and Shoulders for the Nasdaq composite [CANSLIM] 1-2-3 tops on stocks Re: [CANSLIM] A/D--Luke [CANSLIM] Re.Tom [CANSLIM] Quality of toolbox Re: [CANSLIM] Quality of toolbox--Johan Re: [CANSLIM] Quality of toolbox--Johan [CANSLIM] Fwd: (ClearStation) Recommendation : 'ASAI' by kensey [CANSLIM] Need some advice Re: [CANSLIM] Quality of toolbox--Patrick Re: What happened to this group? (was [CANSLIM] Quality of toolbox) [CANSLIM] Mini taking a few lumps. [CANSLIM] Re: What happened to this group?--Tom Re: What happened to this group? (was [CANSLIM] Quality of toolbox) ---------------------------------------------------------------------- Date: Thu, 04 Jun 1998 05:52:04 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] A/D > I would have to agree with Luke's perspective on this. Looking at the > A/D (Advance/Decline not Accumulation/Distribution, in case anyone was > confused about these two identically abbreviated indicators and must > be read in context, one refering to the mkt and the other more to > individual stocks) it seems to me that it is indecisive. Adding in the > new highs/lows as an indicator, it still appears negative for the > moment, altho both do offer some hope we are reaching the end of this > now obvious correction. Last week clearly showed me what I saw as a > consolidation was finally resolved, unfortunately to the downside. The > extreme volatility may be suggesting bargain hunters stepping in with > some of the sidelined cash, but still too early to be sure. > A/D, according to WON, HTMMIS, p. 57. My view, based upon that passage and my own "M" experience...lagging indicator in the same way that MACD laggs and not useful except to deterimine breadth of a rally. New highs, new lows is the same. Tom, "correction" is now obvious? One of these day's I really want to get to the bottom of those questions I posed about price and volume signals and why you feel they are unreliable or unclear. Sorry, but this comment just reminded me of those questions. Still counting for a follow through day, myself. Working again, so can't watch very closely, but end of the day will suffice. Short AMZN and CMGI. Otherwise, Cash!! Bye (not Buy). Jeffry - - ------------------------------ Date: Thu, 4 Jun 1998 07:55:10 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Re: Head and Shoulders for the Nasdaq composite Patrick Wahl, A very basic question. How do you set up your message so that someone can click on the blue phrase to access whatever you're referring? I don't expect a detail explanation, just a place I can get the information. I printed the chart for Atlantic Coast Airlines and drew some trendlines which greatly helped me see your point. Thanks. Mary Keener - - ------------------------------ Date: Thu, 4 Jun 1998 08:26:11 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Re: (CANSLIM) Chris McKeever, Thanks for the site taguru.com. Looks good. Will study. I just sent an e-mail requesting information on how to setup my message so that others can access a site, as you did. Mary Keener - - ------------------------------ Date: Thu, 04 Jun 1998 10:06:01 -0400 From: Connie Mack Rea Subject: [CANSLIM] 10-line EMA Members-- Our member who asked about setting up the 3-line EMA reminded me of some tinkering I have been doing. I have one screen set up with 10 EMAs. What this screen does is to visually, and dramatically, show high and low extremes of price and sometimes a gathering of all ten EMAs en masse. A gathering of the 10 lines is a pretty good indicator of ambiguity, but an ambiguity that may be cleared with some careful reading of other indicators. One of the members of my faculty group insists on using a 5/20/40. For him, the 10-line ribbon shows just how much weakness there is when a stock is approaching the 40-line EMA. When my 3/7/10 EMA has given a third level sell signal, that is the last moment that I am in that stock. When my friend sees his 5-line pass downward through the 10/15/20/25/30/35 EMAs, he can see just how much price has broken down. That's when he calls me at eleven o'clock at night. When you see the first five EMAs pass through the last five [30/35/40/45/50] and begin to separate on the low side, you know some bad things have happened to that stock. And some more are probably to follow. The 10-line EMA will show more dramatically both the strength and the weakness of a stock. Even in BigCharts, which lets you enter seven EMAs, the picture can be riveting. It can be a wake-up call for those who have been careless with their stops or who have put up no stops. I set my screen up this way. You won't have to manually use different colors in BC, for it automatically inserts a different color for each EMA. You may use commas to separate EMAs; however, as with many delimiters, you need enter nothing; a space will do nicely. For no reason, I use red for my 5-line; yellow for the 10/15/20/25. Green for the 30; and Cyan for 35/40/45/50. The red and green give some perspective by allowing me to distinguish among the lines when they get bunched. When conditions change, I can easily see when the red first emerges. Believe I have seen GCABY mentioned lately. Put an EMA with seven lines on the stock with a 3-mos chart. You can see the strength at the left where the lines are separated with the 5-line EMA on the top. The greater the separation, the greater the strength. You can see the breakdown of price in the last two weeks. By yesterday, the 5-line is right on the 35-line. Pull up a 1-mos chart. On May 12th MF has begun to deteriorate; by the 21st, MF is clearly weak. OBV went negative divergence on the 5th and has continued to stay weak. It was especially negative from the 5th through the 8th. The SloSto turned sell on the 13th, tried to cross over to the upside on the 21st and 29th but finally broke down again. The MACD, ordinarily a lagging indicator, turned sell on the 5th, tried to re-cross for three or four days, and broke down completely on the 15th. Notice how the lines are further separating as indicated by the length of the black lines. Pull up Volume+ and look at the those five long positive volume spikes in mid-April; notice the extent of the price correction: notice price is falling while positive volume is rising. Now look at the last six days; there is no other similar row of low volume days on the chart. My guess is that the stock is stronger than the price indicates; that the stock is stronger than a superficial reading of the MACD, SloSto, and EMA indicate; and that the correction to 13.25 is an acceptable correction. What would cause me to perhaps act before the 13.25 level would be the continued breakdown of the Dow and NASDAQ. I mentioned a couple of days ago several supports of the NASDAQ, with 1709 or so as support that, if broken, is big trouble. If the Dow doesn't hold now at the low of the last days of March, there is more severe trouble. Absent these supports holding, no stock will be safe. It is then that you will be grateful for having done your homework and hold only really strong positions. Each stock will assume its own characteristics, and you will learn to infer from them as you become more familiar with each indicator. Connie Mack - - ------------------------------ Date: Thu, 4 Jun 1998 07:24:46 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] A/D > Date: Thu, 04 Jun 1998 05:52:04 -0400 > From: Jeffry White <"postwhit@sover.net"@sover.net> > A/D, according to WON, HTMMIS, p. 57. My view, based upon that passage > and my own "M" experience...lagging indicator in the same way that MACD > laggs and not useful except to deterimine breadth of a rally. New > highs, new lows is the same. Marty Zweig says that if you ever see a 10 day average of Adv/Decl get to be 2 to 1 positive, it is a good indication that the market is headed higher. He lists 10 occasions when this happened, and in 9 of them the market was higher 3 months later, and in all 10 instances the market was higher 6 months later. This was through 1987. > > Tom, "correction" is now obvious? One of these day's I really want to > get to the bottom of those questions I posed about price and volume > signals and why you feel they are unreliable or unclear. Sorry, but > this comment just reminded me of those questions. Somehow I think this issue was already beaten to death. You guys just view things differently. - - ------------------------------ Date: Thu, 4 Jun 1998 07:24:46 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Re: Head and Shoulders for the Nasdaq composite > Date: Thu, 4 Jun 1998 07:55:10 -0500 (CDT) > From: mckeener@ix.netcom.com > A very basic question. How do you set up your message so that someone can > click on the blue phrase to access whatever you're referring? I don't > expect a detail explanation, just a place I can get the information. I'm going to have to take a guess at what you mean based on what happens in my own mail reader. I use Pegasus and when it sees a URL in the text, it highlights it and I can click on it which opens a new browser window and sends the browser to that address. It is nothing within the message itself. Just that Pegasus can recognize the format for a URL and highlight it. So I presume your mail reader is doing the same thing. > I printed the chart for Atlantic Coast Airlines and drew some trendlines > which greatly helped me see your point. Thanks. Finding constructive charts seems to be getting harder these days. I hope I can throw something useful out there once a week or so. - - ------------------------------ Date: Thu, 4 Jun 1998 07:48:47 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] 10-line EMA <> This may be a variation of a plot that was discussed in TASC in February. Two "bundles" of exponential MAs were used. The short-term consists of 3, 5, 8, 10, 12, 15 and Ian Woodward added a 17. The intermediate-term consists of 30, 35, 40, 45, 50 and a longer-term, not discussed in the article, may be added consisting of 150, 162, 175, 187, 200, 212, and 225. While this seems like a lot of moving averages and a completely unnecessary amount of work, the "bunching" that one sees before a major move is so visual that it can't be missed (with the color-coding available in a charting program, it's easy to keep the bundles separate). When the shorter-term MAs begin to weave themselves into a rope, something is about to happen. If they do it long enough, the entire rope will come to rest on the intermediate-term group (even those with an intermediate-term timeframe can use this as a timing mechanism for intermediate-term buys). If you want an even faster entry, you can use the shorter-term EMAs as successive signals, for example, when the 3 crosses the 17, then the 5, etc. (if you want it even faster than that, you can act when they begin to cross each other, but this is a bit speedy for anyone but daytraders). Choose your own comfort level, but you'll find that as these shorter-term MAs cross the longer ones, the more confidence you'll have in the success of the move. At the very least, you'll know that you're not making it up. You can't do this with BigCharts, of course, but since WOWS Pesonal Investor only costs around $40, and since it's the only program other than Telescan that provides fundamental screening suitable for CANSLIM, it seems like a false saving to try to use free programs when the cost of a more sophisticated program can be made back in a day, given the quality of information it provides. I'm not a salesman for WOWS, but I do get a lot of questions about charts and charting, and I've learned that the degree of one's success is at least somewhat related to the quality of tools in one's toolbox. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 04 Jun 1998 08:08:29 -0500 From: Luke Lang Subject: Re: [CANSLIM] A/D Jeffry, Jeffry White wrote: > > A/D, according to WON, HTMMIS, p. 57. My view, based upon that passage > and my own "M" experience...lagging indicator in the same way that MACD > laggs and not useful except to deterimine breadth of a rally. New > highs, new lows is the same. > All indicators are lagging, including price and volume charts. What I read from your post is that your consider A/D, MACD, etc. to have more of a time lag than you would prefer. Is this correct? If so, what do you use? You count "follow-through" days for the general market direction. How about individual stocks? Do you try to time them or just the general market? Why have you decided to short AMZN and CMGI? Was it for technical reasons? I personally don't mind some lag because I am trying very hard not to try to catch the bottom or peak. However, I don't have a feel for how much lag these indicators have. Anyone have any thoughts? Thanks. Luke Lang - - ------------------------------ Date: Thu, 04 Jun 1998 11:25:48 -0400 From: Mark Schiffner Subject: Re: [CANSLIM] Re: Head and Shoulders for the Nasdaq composite Mary, To follow up what Patrick said and give a couple of examples: www.bigcharts.com - the blue link is exactly what I typed http://www.bigcharts.com - again, the blue link is exactly what I typed Url's that don't start with www, like the two urls om the "PRARS Top 50" message yesterday (investor.msn.com and cbs.marketwatch.com) don't show up as links, use the http in front to make them show up: http://investor.msn.com and http://cbs.marketwatch.com At 07:55 AM 6/4/98 -0500, you wrote: >Patrick Wahl, > >A very basic question. How do you set up your message so that someone can >click on the blue phrase to access whatever you're referring? I don't >expect a detail explanation, just a place I can get the information. > >I printed the chart for Atlantic Coast Airlines and drew some trendlines >which greatly helped me see your point. > >Thanks. > >Mary Keener > > >- > - - ------------------------------ Date: Thu, 04 Jun 1998 08:53:40 -0500 From: Eric Boller Subject: [CANSLIM] 1-2-3 tops on stocks >Before getting this book, I had identified a 1-2-3 top for the Nasdaq. >It looks like (at least in this case), the 1-2-3 top is the right side = of the > head & shoulders. The use of 1-2-3 tops & bottoms is popular in=20 > commodities trading. I don't recall this technique being used for > stock trading. I don't think 1-2-3 Tops & Bottoms are in Pring's > book. Yes, you can use 1-2-3 tops in stock trading. Actually, they generally = call them 1-2-3-4's. Go to www.pristine.com and go to "Educational = Reports" in the FREE area. They talk about this in "Counting your way = to riches" or some other title like that. They also say to look for = counts of 5 or 8. There is a lot of good stuff for traders in these = reports. Also very good stuff for intermediate term = investors--especially if they don't want their 5-10% stop taken out. I = suggest everyone take a look at these reports. Very insightful and can = help with your trading AND investing. No, Pring does not talk about these in his book. Eric Boller - - ------------------------------ Date: Thu, 4 Jun 1998 08:37:32 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] A/D--Luke <> There is a "center" which all investors must find, between getting in "early" or at the very beginning of the move, and getting the confirmation that their conservative side demands. Novices in particular have trouble with this. They see a stock "getting away" from them and they're driven to "catch" it. But they invariably choose exactly the wrong time and buy it just before it pulls back or even falls back to support (or worse). Of course if they let it go, it never looks back and becomes one of the stellar performers of the year :) So, the next time, they grab it at the first sign of strength and it subsequently sinks like a stone. This is where CANSLIM shines as no other approach does. You've done the research. You know the fundamentals. You know this stock isn't moving upward solely because some trader is manipulating the price (he may have a hand in the initial move, but his is not the only influence). You've looked for a constructive chart pattern and found it. You can, like most CSers, buy the "breakout", or you can use technical indicators to provide you with some insurance. You can, for example, look at a slow stochastic, though it doesn't really matter whether you use fast or slow because of the next step. You may find that the stochastic had been negative and has just turned positive. So then you check the RSI as a filter against the stochastic, since the stochastic is faster and often give false signals (not false in the sense that they're wrong, but false in the sense that they're very short-term--too short-term for CSers). The RSI turned from negative to positive a few days earlier. So you now have four confirmations--the fundamentals, the constructive pattern, the stochastic, and the RSI. From here, you can also check the MACD. If it's turning down from an overbought level, whatever move is to come may be short-lived. But it just as easily might be neutral or turning positive, yet another confirmation. At this point, you can check short-term EMAs as I described earlier today. These may provide more confirmation. (All of this, incidentally, is how I came to buy HCFP yesterday; though I got it a bit high--51.63--it was still a good price). Now there are those who would wait to see if the stock retested support before they make their move. However, a fall back to support can just as easily be a sign of weakness as it can be a retest of support. And novices often see it this way when the time comes. So they still don't buy. They wait for some other confirmation. And by the time the move is confirmed to their satisfaction, it's often close to having run its course to the point of correcting or segueing into yet another base. So the individual investor must decide at the outset just how much confirmation he wants. The role of the fundamentals is to give him at least some confidence in the choice he's made, though they can't tell him anything about his entry point. The flip side is that, even after all this, if he turns out to be wrong, he must have his stop predetermined so that if the market proves him wrong, he can get out with little or no damage and try again later (it is, after all, a great stock). Sometimes these indicators will lag to the point where they prevent you from taking advantage of a powerful move, that is that the move is so sudden and so strong that by the time the indicators show positive, the stock is overextended. But this is not always the case. Many stocks will give you plenty of notice if only you know what to look for, and that includes price and volume study. It is not, in other words, one or the other--it's both. You also have to ask yourself just how many stocks you can own. What does it matter if you miss one if there are other waiting in line? For example, I came up with five retail stocks last night, all in nice bases, but none of which are really doing anything. They're getting ready, but they're not ready yet. Some of the indicators are postive, some are getting there, some are negative. Maybe they're positive on the daily chart but negative on the weekly chart (a short-term trader won't care; an intermediate-term trader will). So I wait. If one or two get away from me, no big deal. As long as I catch one out of the five, that's plenty. Greed, get thee behind me. It's also worth remembering that Rothschild said that he always bought too late and sold too soon. Didn't do HIM any harm. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 04 Jun 1998 11:45:03 -0400 (EDT) From: JANSI1AUG1@aol.com Subject: [CANSLIM] Re.Tom Tom, (I'm posting here because I thought the group might be interested). Thanks for your response concerning additions to your "stock watch list". But why would you want to create a Web page for your Market perspectives, economics and stock's you select to watch. Isn't this what Canslim is for? Personally, I don't think your Canslim views are "a waste of band width". If I did, I wouldn't subscribe to Canslim Digest. The only thing I believe a Web page will do, in this instance, is force Canslimmers to go to two rather than one Web site if they value your instructive tidbits and educational perspectives. (As an aside, if you create a Web page to convey all your Canslim information, then does that mean that you are intending to leave the group?) Tom, perhaps I missed it, but I'm really surprise no one has asked how you use the 10, 50 and 200 EMAs. Do you wait for entry for the day price to pass the 10, 50, 200? Or do you look for the 10 to pass the 50 or 200? Or 50 to pass the 200? Also, does the slower moving data have to be moving up before it is penetrated? Tom: Since WON emphasizes the importance of volume in determining stock entry points, why don't you use volume indicators in your TA analysis? Jans - - ------------------------------ Date: Thu, 04 Jun 1998 19:38:53 +0200 From: Johan Van Houtven Subject: [CANSLIM] Quality of toolbox DB wrote: >You can't do this with BigCharts, of course, but since WOWS Pesonal >Investor only costs around $40, and since it's the only program other >than Telescan that provides fundamental screening suitable for >CANSLIM, it seems like a false saving to try to use free programs when >the cost of a more sophisticated program can be made back in a day, >given the quality of information it provides. I'm not a salesman for >WOWS, but I do get a lot of questions about charts and charting, and >I've learned that the degree of one's success is at least somewhat >related to the quality of tools in one's toolbox. DB, Which packages did you look at before deciding on WOWS? Did you test or investigate any other packages after you decided on WOWS? From what I read you even use WOWS to track groups, correct? Johan Van Houtven CLICK! N.V. / Wilrijk, Belgium - - ------------------------------ Date: Thu, 4 Jun 1998 11:55:57 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Quality of toolbox--Johan <> There are only two programs that allow you to screen for both fundamentals and technicals--WOWS and Telescan. I went with WOWS because of the flexibility; you can't write your own formulas with Telescan (this sounds very intimidating but it's really pretty simple if somebody shows you how, and I was lucky enough to find somebody to show me how to do simple stuff). Plus I never could figure out the Telescan jargon. Gave me a giant headache each time. There are programs that scan for fundamentals. AAII has one. But then you've got to get a charting program as well. Morningstar promised a combo but never delivered. QuotesPlus was going to come up with something, but that was almost two years ago and I wanted to get on with it. As far as the groups go, you set up "composite" securities. You create a group--like chips--and decide which stocks are going to be part of the group. You can put in all of them, the leaders only, the large-caps only, the CANSLIM stocks only--whatever. Then you tell the computer to make a composite, like an index. Once you have that, you can chart it like any other stock (you can also give various stocks in the group various weightings if you want). And while you won't get an RS number, you can plot a relative strength line by comparing the stock to another stock, a group of stocks, a stock index, a market index--again whatever. I should add that Personal won't allow you to write formulas, but I believe Deluxe will. You'd have to ask. _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 4 Jun 1998 12:59:54 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Quality of toolbox--Johan > Date: Thu, 4 Jun 1998 11:55:57 -0700 (PDT) > From: dbphoenix > There are only two programs that allow you to screen for both > fundamentals and technicals--WOWS and Telescan. I went with WOWS > because of the flexibility; you can't write your own formulas with > Telescan (this sounds very intimidating but it's really pretty simple I thought Prosearch or Proscan or something like that from Telescan allowed to you to define searches. Or is this just using pre-defined searches and indicators? - - ------------------------------ Date: Thu, 04 Jun 1998 13:12:50 -0700 From: Tim Fisher Subject: [CANSLIM] Fwd: (ClearStation) Recommendation : 'ASAI' by kensey Hmmm, me smells a lurker here...or one helluva coinkedink... >X-From_: michael-tfish=3Dspiritone.com@limbo.clearstation.com Thu Jun=A0 4 10:00:29 1998 >Date: 4 Jun 1998 17:00:02 -0000 >From: ClearBot@clearstation.com >To: "Subscribers of kensey's recommended list" >Reply-To: support@clearstation.com >Subject: (ClearStation) Recommendation : 'ASAI' by kensey > >+-+-+-+-+-+-+-+-+- >'kensey' has recommended ASAI (Long) > > >'kensey' said: > >What gives with the funny lines? > >They actually lend a clear picture of what has been >going on with price action for Atlantic Southeast >Airlines (ASAI). > >The pair of horizontal green lines are called 'banded >support and resistance lines'. The topmost line is >drawn at 40 1/2. This is a resistance line. When >prices approach it, it resists further advances. >The lower line is drawn in at approximately 36.=A0 This >is a support line. When prices approach it, it has acted >to support prices and ward off further declines. > >For the past 4 months, prices have oscillated between >these two lines. At 40 1/2, sellers appear and prices >are forced back down. At 36, buyers step in and prices >are forced back up. It has been a battle of two equal >and opposing forces. These lines exist as a facet of >crowd behavior, and because traders have memories. >They get used to buying and selling at the same price >level over time. Easy money. > >Where's the beef? > >This is yet another play on the 'strength of the domestic >economy' theme. The only reason the DOW has declined by >only 3 percent from its top, and the broader based S&P >500 has declined only 4 percent from its top is the >favorable backdrop of the US economy. Growth is strong, >interest rates remain low, and inflation is non existent. >Add to this equation the recent decline in oil prices, and >you have an environment in which this certain small airline >carrier can prosper. > >Who cares? > >I do!=A0 ASAI has broken above resistance at 40 1/2. This >suggests the dawn of a new era and that resistance at >40 1/2 may now become support at 40 1/2. In other words, >its role reversal time. This is typical once a historical >level is crossed (in either direction). So if ASAI is not >able to hold above the newly anointed support line at 40 1/2, >then all bets are off. Tomorrow is a pretty critical day >for this stock. > >To unsubscribe from my recommend list,=20 >http://www.clearstation.com/cgi-bin/= dri ll_open_positions?Event=3DopenPortfolioName=3Drecommend&usernm=3Dkensey> >click here and then click UnSubscribe >
>kensey
> >See the annotated graph of this recommendation at: > >http://www.clearstation.com/cgi-bin/details? Symbol=3DASAIEvent=3Dopen&PortfolioName=3Drecommendusernm=3Dkensey > >+-+-+-+-+-+-+-+-+- > >*NOTE : DO NOT reply to this email. Replies should be made within 'Discuss' >at the url given above. > >Copyright (c) 1998.=A0 ClearStation, Inc. All rights reserved. >ClearStation is neither an investment advisory service nor an investment >advisor and does not purport to tell or suggest which securities Members >should buy or sell for themselves.=A0 Members should always check with >their licensed financial advisor and their tax advisor to determine the >suitability of any investment. >=20 Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites mailto:Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Thu, 4 Jun 98 18:19:48 LOC From: Tim Sowden Subject: [CANSLIM] Need some advice I need some advice here on a non-canslim stock. A few months ago a bought some shares of DSC communications (DIGI) on the advice of a friend who worked for the company. I paid about 19.00 a share and bought about 3K worth of the stock. I had kind of forgotten about it as it had been languishing around the 17-19 range. Today it jumped from 19 to 27 on 42 million shares traded. It's going to be aquired by Alcatel in a stock swap. Each share of DSC will be worth .815 of a share of Alcatel (currently about 43 a share) which works out to about 35 a share. The deal will be finalized around October. My question is this. Should I hold the stock and wait till it gets converted or rises to somewhere near 35 a share and then sell, or should I take the money now and run? I read that Alcatel slumped on the news but that Analysts liked it. Also, the deal can be called off if Alcatel shares fall to below 37 a share. Is this likely that the deal might get cancelled for this reason? Any/all advice appreciated. Tim - - ------------------------------ Date: Thu, 4 Jun 1998 15:54:38 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Quality of toolbox--Patrick <> As I understand it, the latter. They supposedly have a lengthy list of criteria one can use, but you can't decide that you want to look for stocks whose 3d EMA just crossed the 10d EMA, again, as I understand it. And it ain't cheap. And I don't know where the charting comes into it or what the capabilities are. You'd have to ask somebody who has it. Wish I could be of more help. At the time, I couldn't understand why it cost so much, and I preferred having everything in my computer rather than have to go online everytime I wanted to access information. Perhaps we have a lurker who has Telescan. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 4 Jun 1998 21:12:58 -0400 From: "Tom Worley" Subject: Re: What happened to this group? (was [CANSLIM] Quality of toolbox) Johan, nothing personal against you, your response just happened to be the one I snagged to use as a vehicle to vent some steam, and share what I have been seeing in this group lately. Maybe, being one of those unsophisticated kind of investors that choose to ignore all the fancy smancy software packages and just pick stocks mostly in an old fashioned way by hand using WON's basic CANSLIM rules, I am just missing the whole point of all these posts lately about which technical indicators to use, and what software package works better, and whose opinion is right on whether Yahoo provides real time or delayed index quotes, or whether one tool in the toolbox is better than another. Frankly, I am naive enough to believe that if a person who is making his living off trading the market (like Connie) finds a site like BigCharts to be an effective tool for his toolbox, then so what if it's free instead of costing $40!! I'm willing to bet that Connie would spend that $40 if he thought it could make him more money. He likely spends well over that amount every day in trading charges alone. It actually sounds like quite a compliment to BigCharts that they can be better, for free, than a commercial package, and still get the job done. Personally I just appreciate whoever first brought it to this group's attention (may have been Connie, just don't remember) and many thanks to Connie for all his lengthy posts on how to use BC and TA better, complete with many detailed examples. I've been trying to restrain myself for some time, even before I quit this group a while back. But frankly, it's hardly deserving of calling itself CANSLIM any longer. I doubt even a qtr of the email I am now getting from this group are remotely on any related CANSLIM target. With something like 35,000 newsgroups out on the net, can we get back to CANSLIM and let those interested in arguing the merits of one software package over another, or whose opinion is right on which TA indicators to use, or whether BC's definition of MF is valid or correct take those unrelated or barely related topics to a more appropriate forum?? Lately, it's been real difficult finding the occasional mention of CANSLIM, much less a CS stock, in and amongst all the "noise" coming out of this group. I've been relatively quiet lately, and that's one of the reasons. I'm still mulling over how, and if, to answer jan's post and questions, which would hopefully cover the rest of the reasons. I'm already getting up an extra hour early in the morning to give me some addl time to study charts. Simply put, I could better use all the time I spend reading most of the posts from the group lately. Tom W - -----Original Message----- From: Johan Van Houtven To: canslim@lists.xmission.com Date: Thursday, June 04, 1998 2:39 PM Subject: [CANSLIM] Quality of toolbox >DB wrote: >>You can't do this with BigCharts, of course, but since WOWS Pesonal >>Investor only costs around $40, and since it's the only program other >>than Telescan that provides fundamental screening suitable for >>CANSLIM, it seems like a false saving to try to use free programs when >>the cost of a more sophisticated program can be made back in a day, >>given the quality of information it provides. I'm not a salesman for >>WOWS, but I do get a lot of questions about charts and charting, and >>I've learned that the degree of one's success is at least somewhat >>related to the quality of tools in one's toolbox. > >DB, > >Which packages did you look at before deciding on WOWS? Did you test or >investigate any other packages after you decided on WOWS? > >>From what I read you even use WOWS to track groups, correct? > > > >Johan Van Houtven >CLICK! N.V. / Wilrijk, Belgium > > >- > - - ------------------------------ Date: Thu, 04 Jun 1998 21:30:35 -0700 From: David Reid Subject: [CANSLIM] Mini taking a few lumps. > Any body besides me been watching mini?? I have been in and out of this stock once already, and made 25%.It is back down pretty good right now. 9 1/8 from a high of over 12. I was wondering if anybody in the group had any ideas on why. I am thinking about getting back in it tomorrow. It traded over 250 million shares a couple of days ago which is very heavy for this stock. Any ideas?? Dave the rookie - - ------------------------------ Date: Thu, 4 Jun 1998 18:40:12 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] Re: What happened to this group?--Tom << . . . can we get back to CANSLIM and let those interested in arguing the merits of one software package over another, or whose opinion is right on which TA indicators to use, or whether BC's definition of MF is valid or correct take those unrelated or barely related topics to a more appropriate forum??>> My apologies if we've offended you, Tom, but I, for one, make my living off the markets as well and have done so for nine years. For you to say that Connie is the only one qualified and/or welcome to discuss technical indicators and their uses, various types of moving averages and their uses, and charting and how to interpret charts is more than slightly elitist. You do not hesitate to recommend DG again and again, even though it costs hundreds of dollars a year, and even though all the information it contains can be obtained for free elsewhere on the net, if only one wishes to look it up, except of course for RS, EPS and GS ranks, which can be obtained by picking up a copy of IBD once a week for $1, or going to the library and getting it for nothing. Yes, BC is just fine for those who don't want to go further. But there are clearly a number of people who would rather not have to plot each indicator one at a time, who would like to plot more than three moving averages at once, who would prefer not to have to print out chart after chart in order to draw trendlines, and who might like to study charts without having to go online or spend several hundred dollars for DG which, I might add, comes no more often than weekly. I applauded you for at least sticking your toe into the charting waters and experimenting with MACD, but it seems the rest of the group is not free to experiment as well and discuss the results of those experiments. Surely it has not escaped your notice that during those times when the market is unwelcoming to CSers, we put our time to its best use by studying, rereading, learning new skills, honing old ones, and sharing all that with each other. If all of this bores you, then skip the posts. As far as CS stocks go, HCFP is up 5 points since yesterday morning. Is that not enough? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 4 Jun 1998 18:42:10 -0700 (PDT) From: Tim Fisher Subject: Re: What happened to this group? (was [CANSLIM] Quality of toolbox) Whew, I know this will start another non-CANSLIM thread, but Tom, have you considered that there have been next to no breakouts of CANSLIM stocks in the past 3 weeks? Plus the candidate list has been shrinking the whole time becasue many of these stocks are nowhere near their highs any more. I'd say that was a cause of all the barely related traffic - wouldn't you? Add to that the boring market environment and that doesn't leave much to talk about, does it? Frankly I think the talk of software packages is highly relevant. I use Zacks Research Marvel to get my screens done, Connie uses BigCharts, Db uses WOWS, and I for one want to compare software so I know what I am missing by using a free package. Which, so far, is nothing, as both it and the full Zacks product (Research Wizard, costs too much for me) does CANSLI just fine, plus almost all that I have seen mentioned about WOWS, DG, Telescan, QP, etc. At 09:12 PM 6/4/98 -0400, you wrote: >Lately, it's been real difficult finding the occasional mention of >CANSLIM, much less a CS stock, in and amongst all the "noise" coming >out of this group. I've been relatively quiet lately, and that's one >of the reasons. I'm still mulling over how, and if, to answer jan's >post and questions, which would hopefully cover the rest of the >reasons. I'm already getting up an extra hour early in the morning to >give me some addl time to study charts. Simply put, I could better use >all the time I spend reading most of the posts from the group lately. > > >Tom W > Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information mailto:tim@OreRockOn.com WWW http://OreRockOn.com - - ------------------------------ End of canslim-digest V2 #267 ***************************** 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.