From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #292 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 18 1998 Volume 02 : Number 292 In this issue: Re: [CANSLIM] Spammers getting email addresses from archives? Re: [CANSLIM] "triple screens" of one sort or another [CANSLIM] And now for the daily [CANSLIM] Re: MFAC [CANSLIM] Att: Tim Fisher only. Re: [CANSLIM] Questions [CANSLIM] The More Things Change . . . . . [CANSLIM] RE: Dan Sutton's post. [Connie] Re: [CANSLIM] Att: Tim Fisher only. [CANSLIM] And when to buy Re: [CANSLIM] Att: Tim Fisher only. (MFAC) Re: [CANSLIM] Questions - Ari Re: [CANSLIM] Elder Triple Screen TA & Canslim Re: [CANSLIM] Re.Investors' Corner, IBD Re: [CANSLIM] Stocks Re: [CANSLIM] Spammers getting email addresses from archives? Re: [CANSLIM] The More Things Change . . . . . Re: [CANSLIM] Questions Re: [CANSLIM] The More Things Change . . . . . Re: [CANSLIM] The More Things Change . . . . . [CANSLIM] TELESCAN Weekend review scan Re: [CANSLIM] The More Things Change . . . . . ---------------------------------------------------------------------- Date: Thu, 18 Jun 1998 12:20:07 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Spammers getting email addresses from archives? <> Sounds like a really cathartic experience to me. Think of all those aggressive vibes you'll be able to dump :) heh heh heh - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 13:32:00 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] "triple screens" of one sort or another With all the chatter about screens, I thought it might be helpful to look at some charts again. Since Tim is fond of THRX, I've used that as an example. To save space and the probability of yawns, I won't repeat what I said about using weekly and daily charts in conjunction. What I'd like to do here is give an example. ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/THRX-WK.gif This is a weekly chart of THRX, extended far back enough to show the last time that the slosto and MACD have both been in oversold territory. As you can see, it's been a while. Keep in mind that this is a weekly chart, so the MAs are 4-week, 10w and 40w to match daily MAs of 20, 50 and 200. It was mentioned earlier that Elder uses MACD. I use both. Stochastics tend to lead MACD, so I scan for that first and wait, if necessary. I like as much leadtime as possible so I can do whatever research I want to do, monitor the news, and watch how the stock "behaves" (meaning how the people who buy and sell the stock behave). Here (point 1), you had about four weeks before the MACD began to turn upward. The catch in this instance is that the stoch was not quite oversold and would not have shown up in a computer scan. But the MACD would have and you would have seen that the stoch had been within a hair of oversold a month earlier. Even so, you still would have had several weeks after the MACD broke through the "0" line to do whatever while this particular stock based. You would have been given additional courage by the fact that the stock successfully reemerged from below the 40w, the 10w successfully tested the 40w, and the stock rode the 10w tightly throughout the basing period. The second opportunity to buy was in January. Here the MACD is not oversold at all. You'd have had to do a scan for oversold slosto here (in this case, the slosto is in fact oversold). To buy or not to buy. Here, even though the MACD is not oversold, it is clearly healthy. Of course, if one had been in the middle of it all, that would not have been at all clear. But 40w MA did support the stock, and it did turn up from an oversold level (slosto) at the same time the stock was reemergin from below the 10w average. At that point, the MACD was clearly turning upward, and the lines crossed to the buy side at the same time the stock reached a new high. We are now facing a situation similar to December '97 (and possibly March '97, if the stock continues to base). This is a bit like learning a new language. Until you know the alphabet and what the words mean, none of it makes any sense. Weekly charts help with the sense because there's so much less noise. But you still have to pick your spot, which is what the daily chart is for. And that's up next. _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 13:55:52 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] And now for the daily ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/THRX-DY.gif This is a blow-up of the periods referred to in the previous post. "1" and "2" refer to the four-week periods shown by arrows in the other chart. Now let's say you picked up on this on a stochastic basis in April '97. At that point, the MACD is still falling (it will show up on your computer scan in mid-month). You could have gone to the daily and seen that the stock was oversold there as well, but that the MACD had already begun to turn up. Not enough to get excited about, but definitely not down. You could have bought and not come to any harm. Or you could have waited and seen that the stock would become oversold again in early May. You could have entered here, but the MACD was still not giving you the go-ahead on the weekly. The daily was still positive, but again not enough to get excited about. Finally, the MACD breaks through the 0 line in mid-May, which is also the period during which the weekly MACD and slosto begin their ascents. The stock also breaks through the 50 and 200d MAs almost simultaneously (note how the three MAs tighten into a sort of rope). But what if you had missed all this and did not come upon the stock until December (a computer scan for slosto would have given it to you the second week of December)? A check of the daily would show that the stock was coincidentally oversold on a stochastic basis, and even though the MACD wasn't oversold on the weekly chart, it was oversold on the daily. Seeing that the stock was successfully testing the 200d MA, you could have gone ahead and bought here with a tight stop, or waited till it cleared the 50d, or even waited for the new high at the end of January (you'd still get a 40% gain out of it). But if you want to fine-tune entry even further and you need a bit more confidence to plop down your money, there's one more thing to tack on. _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 14:05:27 -0700 From: Tim Fisher Subject: [CANSLIM] Re: MFAC MFAC used to meet my CASLI scan; dropped oput but it's at elast marginally CANSLIM.=20 At 09:15 AM 6/18/98 , you wrote: >Members-- > >OBV/MF stocks that came up this morning are MFAC, PIOG, and PMTS.=A0 Be >sure to look at the EMA, SloSto, and MACD for entry points. > >A fourth stock, NLCS, also meets OBV/MF criteria.=A0 There is, however, a >point or two relating to the conjunction of several EMAs that you might >wish take a look at.=A0 I have posted earlier about multiple EMAs. > 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, 18 Jun 1998 17:32:21 -0400 From: Connie Mack Rea Subject: [CANSLIM] Att: Tim Fisher only. Tim-- Thanks for the comment on MFAC. Believe there's a little money to be made here. Jumping the gun a little on MACD, but today's action ought to push it to buy. Connie Mack Tim Fisher wrote: > MFAC used to meet my CASLI scan; dropped oput but it's at elast marginally > CANSLIM. > > At 09:15 AM 6/18/98 , you wrote: > >Members-- > > > >OBV/MF stocks that came up this morning are MFAC, PIOG, and PMTS. Be > >sure to look at the EMA, SloSto, and MACD for entry points. > > > >A fourth stock, NLCS, also meets OBV/MF criteria. There is, however, a > >point or two relating to the conjunction of several EMAs that you might > >wish take a look at. I have posted earlier about multiple EMAs. > > > > 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, 18 Jun 1998 17:57:42 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Questions James B. Andrews wrote: > > Is there somewhere that I can read what the following terms mean??? > > OBV/MF > EMA > SloSto > MACD > > I know that OBV means on balance volume but don't know how it works... > > Thank You for your replies > > BTW, the replies to my question the other day about trading the indexes > like stocks was very helpful... Thank You. > > Jim > > -I know it's been explained here already,but if someone could explain,in the shortest,concise form as possible,how to recognize the entry point of a stock using EMA,SLOSTO+MACD,it would be greatly appreciated!!! Thanks in advance - - ------------------------------ Date: Thu, 18 Jun 1998 15:01:07 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] The More Things Change . . . . . <> I thought this particularly apropos considering the posts on Elder's triple screen and the discussion we've had on the use of weekly and daily charts. So many novices, particularly CS novices, get so burned out by the day-to-day pummeling. They think they're missing something so they buy it quick, only to watch it fall back into the base. Then the next time they wait for extra confirmation before they buy, waiting for so many confirmation that they wind up buying just at the moment the stock begins to roll over. One would think, for example, that anyone who hadn't just fallen off the turnip truck would know that economies do not rebound in a day. Should any of the above quote have come as news? And yet tomorrow it will all change again, optimism will run rampant (or not), everything will be great. Until 12:38, at which time something will happen to throw everyone into a depression, everything's going to he**, it's all ashes, ashes. Until Monday, when everything's wonderful again. The smell of Dow 10000 is in the air. I'm going to try real hard not to be obnoxious about the point, though I can't promise not to belabor it, but I do wish that the novices--if no one else--would at least make an attempt to focus on weekly charts in order to get a sense of How It All Fits Together, a sense of the rhythm and the patterns. It's all well and good to say "Well, I missed BKE. It hasn't shown an oversold MACD for more than a year (or whatever)." But every week there are new stocks that look just like BKE did. Or THRX did. But we don't buy them because they're "too low". And then a year later we look at them and wonder why we didn't buy them when. There are good reasons why some stocks go down. And stay down. But there are other stocks that are only temporarily behind the door. The function of charts and these basic indicators (and CS) is to keep you from thrashing wildly about in the dark. No, they won't catch every stock, and, no, not every stock they catch will be a stunner. But just because your system doesn't catch every stock doesn't make it a bad system (CS would not have caught most "internet" stocks--so what?). If you try to tweak whatever you're doing into something that does catch everything, you're hardly using a system at all, and the chances of your losing money are greatly increased. Remember that you only need 5-8 stocks. If whatever you're doing finds those 5-8 and you're happy with them, it doesn't matter if whatever you're doing didn't catch AOL or EDAC or whatever. The purpose of CS is to stack the deck in your favor. Let it do its work. There will be refreshments after the service. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 18:08:50 -0400 From: Connie Mack Rea Subject: [CANSLIM] RE: Dan Sutton's post. [Connie] Dan-- You worked up some nice stocks. Though only a couple met OBV/MF scan, several are strong and show promise. CCSC met OBV/MF criteria. I'd like to see at least two more days of action. The SloSto and MACD are ambiguous. DTPI: SloSto and MACD have just given buys. EMA just turned buy. ROMC: Has been in a trading channel for couple of months. If it closes above 29.87 or 30 and doesn't labor, the trading range would be broken to the upside and a new move could get underway. The OBV/MF implies the breakout would hold. We all appreciate your hard work to get the list posted. Connie Mack - - ------------------------------ Date: Thu, 18 Jun 1998 15:22:49 -0700 From: Bill Subject: Re: [CANSLIM] Att: Tim Fisher only. Looks like a keeper, Tim - wonder why Connie's scan didn't kick this one out on Monday the 15th. 'Finger' breakout written all over it. Now, don't everyone pile on this one in the AM. I need to get my order in first. :-) Bill-->> - ---------------- Connie Mack Rea wrote: > > Tim-- > > Thanks for the comment on MFAC. Believe there's a little money to be made > here. Jumping the gun a little on MACD, but today's action ought to push it > to buy. > > Connie Mack > > Tim Fisher wrote: > > > MFAC used to meet my CASLI scan; dropped oput but it's at elast marginally > > CANSLIM. > > > > At 09:15 AM 6/18/98 , you wrote: > > >Members-- > > > > > >OBV/MF stocks that came up this morning are MFAC, PIOG, and PMTS. Be > > >sure to look at the EMA, SloSto, and MACD for entry points. > > > > > >A fourth stock, NLCS, also meets OBV/MF criteria. There is, however, a > > >point or two relating to the conjunction of several EMAs that you might > > >wish take a look at. I have posted earlier about multiple EMAs. > > > > > > > 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, 18 Jun 1998 14:14:22 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] And when to buy ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/THRX-ST.gif This ribbon or rainbow or whatever you want to call it has been mentioned several times before. I became aware of it as a result of an article in TASC. It consists of bundles of exponential moving averages. One is clustered around short-term averages and another around intermediate-term averages. Ian Woodward added a bundle of longer-term averages, but this isn't shown. In fact, nothing is shown but the first three and the line I watch for them to cross. The first three are the 3, 5, and 8d EMAs. The last is the 17d. When everything is lined up, including (I hope) the group and the market, I watch these little suckers. As each crosses the 17 in turn, they provide me with a preliminary signal (white), a get-ready signal (yellow) and the go (green). Sometimes the price will settle back down into the base or just rest for a couple or three days at whatever price it has reached. And this doesn't work every single time. But given the momentum that it takes to move out, probabilities are very high that the time you've chosen to buy is the right one. There are only two places in this first May-June period where one would have received a buy signal using this ribbon, noted with 1 and 2. Both are perfectly legitimate. But note that when you get the go-ahead, you really can't fool around. Waiting for the stock to break out of the short base it was forming at the end of May would have meant encountering resistance at 12.50 (established the previous January) and possibly even being stopped out when it fell back toward 10. If you don't have the discipline to move ahead, armed with a tight stop, it's better to wait for the next opportunity than to walk out onto the end of the limb. Note also that if you had bought because you had exceeded the previous high, the buypoint would have been exactly the same in the first instance, and only a day earlier (less than a point) in the second. Using this ribbon, however, gives you a visual display of momentum, which a bar chart alone may not provide for any but the most insightful. Perhaps my use of the word "system" is now a bit more clear. I can't go by step one, step two, step three. I use the computer to scan for certain patterns, like oversold this and MA1>MA2 that, but I then incorporate what's happening with the moving averages and previous support and resistance and is there a base and how long is it. I then look at the group and the market, because investing is all a question of probabilities, not certainties, and if my stock is the only one going anywhere, the probabilities are that it's going to get cut off at the knees, though there is always a slim possibility that it will be one of the very few to do well under lousy circumstances. I prefer, however, to invest on the basis of strong probability, not slim possibility. THRX is a good example of strong probability. Or was. May be again. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 16:35:35 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Att: Tim Fisher only. (MFAC) <> - ---------------->> All the best, Bill, but a couple of notes of caution. As pointed out earlier, the MACD is only partially positive on the daily chart (sto is gung-ho). However, only one fast EMA signal has been given (none using my slower XOs) and the stock is up almost 20% in only four days. It may be squozed as much as it's going to get squozen for the time being. OTOH, a 10-week handle isn't common in this market. If you don't buy tomorrow, don't turn your back on it. For those who care, the weekly chart gave a slosto/EMA buy in January and a MACD/EMA buy in April. Some CSers would have bought at either of those two points and sold as the stock settled into the handle, figuring on buying again when it broke out of the handle. Purists (and HGSers) would wait for the handle and "the breakout therefrom", wanting to see if there was enough demand to push the stock halfway back up the cup. Apparently, there has been. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 15:07:58 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Questions - Ari <> If you've read all of our explanations of the process and it's still gobbledy-gook, it would help if you were to tell us where you're falling through the cracks. Begin at the beginning and proceed until something doesn't make sense, then ask your question. Or does none of it make any sense? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 20:27:00 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Elder Triple Screen TA & Canslim Walter, I only recently began using a one year chart with MACD, and am pleased with results so far. It's a little early for me to be tinkering with my "system", but am starting to introduce a little more TA to the process to see how it works and holds up. Tom W - -----Original Message----- From: Walter Stock To: canslim@lists.xmission.com Date: Thursday, June 18, 1998 10:07 AM Subject: Re: [CANSLIM] Elder Triple Screen TA & Canslim For longs I have been taking Canslim stocks and applying the following "Elder Triple Screen": 1) Market Tide: weekly MACD for a one year period (Histogram uptick method) 2) Market Wave: daily Slosto for a 5-day period (oversold signals when both lines first go below the 30 area) 3) Intraday Breakout: trailing buystop above previous daily high. Based on my study so far, using these screens with Canslim stocks in the last two months gives so-so results. Going back several years however, the results look very strong. System even did well through the mini-crash last October. To Bob, I don't understand what you mean by the "rubber band effect with a buy stop". Could you please explain that for me? To anyone else (Connie?), any comment on these particular indicators or the system as a whole? In many ways this system seems built for canslim longs. Walter - ---------- > >> Has anyone in our group tried the Triple Screen > method ? With or without Canslim, what was > your experience with it? << > > I did a while ago & still use a modified version. I had trouble with how > short the time frames were. I think it makes a lot of sense but I use BB's > on a weekly chart. The rubber band effect with a buy stop. Most of the > "Systems" are the same as it relates to a trend following system. The only > thing that changes is the indicators or the triggers as to when to buy or > sell. Crossing moving average, SloStoch, MACD, Parabolic, RSI, etc.etc.etc. > > > Bob > > > P.S. When the market is up _Everything_ works great. > > - > > - - - - ------------------------------ Date: Thu, 18 Jun 1998 20:33:40 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re.Investors' Corner, IBD I got a warm fuzzy seeing one of the stocks in my portfolio listed. My other recent new high (GCABY) didn't get mentioned which is just as well since it likely is being bot out and upside limited. Tom W - -----Original Message----- From: JANSI1AUG1@aol.com To: CANSLIM@xmission.com Date: Thursday, June 18, 1998 10:09 AM Subject: [CANSLIM] Re.Investors' Corner, IBD > Market corrections - like the one in progress - test a stock's mettle. > In the computer sector, Timberline Software Corp. edged back only 4%. The >Oregon firm makes accounting software for the construction and property >management industries. NOTE: new high today on volume. - - ------------------------------ Date: Thu, 18 Jun 1998 20:58:44 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Stocks Jim, As something of an "expert" in micros, I would suggest you stick either to funds or bigger cap stocks till you gain experience and mkt saavy. Both of the stocks you mention have price working against them, they are just too low to attract much institutional interest. And SOFT also has its EPS of 33 as a major CS negative. I learned a long time ago to also be cautious on micros and small caps where their business plan didn't seem to be homegenous. MWDS has facilities/operations in Opa Locka, FL (near the big lake in southern FLA) and Cleveland. From past experience, I would suggest if you examine the location of the main players in the company, you will find this also coincides with their home addresses. It's certainly not a geographic synergy for marketing or advertising purposes. Don't get me wrong, I'm making some nice profits on small and micro cos during this sloppy correction, but it's not something I would suggest to anyone less than "very experienced: and "risk taking". When you are new to investing, it's best to start with an "ultra conservative" approach, and gradually increase your risk as you gain knowledge and experience. And remember, CANSLIM is not a "value shopping" system, it typically involves stocks breaking new highs, not bottoming out. Tom W - -----Original Message----- From: Jim Noetzel To: cjflann@imt.net Cc: canslim-digest@lists.xmission.com Date: Thursday, June 18, 1998 12:37 PM Subject: [CANSLIM] Stocks >After a long layoff, I just restarted receiving the CANSLIM list. I was >pretty surprised when I saw your email. Of the four stocks you listed at the >bottom, I have been looking pretty heavily at two of them. (SOFT & MWDS). I >came upon these by surfing the net through Yahoo, etc. A sort of "random >walk", if you will. Of course, these were culled from looking at many other >stocks. > >I've never invested before. In two months I'm coming into a fairly large >lump sum of money that will be used to pay down some debt, with the rest to >be invested. Should be able to invest about $25K-$30K immediately, with >monthly amounts after that. > >Over the years, like you, I have read many books on the whole stock market >"experience." I'm an information junkie of sorts, and this seems to be the >perfect spot. From each book I read I walk away with a least some insight >into something dealing with the market. > >Since I'm new in the stock market, I'm a wee bit leery of dedicating too >much to a micro cap stock, but it will be part of the equation. > >If possible, I'd like to hear what you use to weed out the micro cap stocks. > >Thanks, >Jim Noetzel > > > > >- > - - ------------------------------ Date: Thu, 18 Jun 1998 21:16:15 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Spammers getting email addresses from archives? Great idea Jeff. would only hurt those trying to get addresses that way. A real member could contact anyone in the group by a general post (unless they were already removed). Tom W - -----Original Message----- From: Jeff Salisbury To: canslim@xmission.com Date: Thursday, June 18, 1998 2:50 PM Subject: Re: [CANSLIM] Spammers getting email addresses from archives? >Ladies and Gents, > >I spoke with the owner of Xmission about making the canslim archives only >accessable by a password. This isn't feasable unless I were to fork out a >bundle of $. However, Joe McKinley , a member of our >group made a suggestion that I will look into. He suggested I create a tool to >go into the archives and modify every address to make it invalid. Names would >be left in tact, but every email address would be purposely corrupted. In the >coming days/weeks, I will plan to experiment with this idea... > >Best Regards, > >Jeff > >- > - - ------------------------------ Date: Thu, 18 Jun 1998 21:27:59 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] The More Things Change . . . . . Careful, db, you're starting to sound like me. And count me as one of those skeptics on Japan getting aggressive at fixing its underlying economic problems. We had them on the ropes, and let them ride the clock till the bell rang. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Thursday, June 18, 1998 5:57 PM Subject: [CANSLIM] The More Things Change . . . . . ><1106.37: The market traded in listless fashion today with the indices >holding close to unchanged nearly the entire session... In need of a >psychological boost, yesterday's coordinated intervention on the part >of the U.S. and Japan to prop up the yen came as welcome news to is>investors...Today, however, they recognized the fact that Japan's >economic recovery n't guaranteed by a one-day yen rally... In fact, >the dollar was on the rebound today, gaining more than a yen as >skeptics questioned the lasting impact of intervention efforts given > >One would think, for example, that anyone who hadn't just fallen off >the turnip truck would know that economies do not rebound in a day. >Should any of the above quote have come as news? And yet tomorrow it >will all change again, optimism will run rampant (or not), everything >will be great. Until 12:38, at which time something will happen to >throw everyone into a depression, everything's going to he**, it's all >ashes, ashes. Until Monday, when everything's wonderful again. The >smell of Dow 10000 is in the air. > >whatever)." But every week there are new stocks that look just like >BKE did. Or THRX did. But we don't buy them because they're "too >low". And then a year later we look at them and wonder why we didn't >buy them when. > >from thrashing wildly about in the dark. No, they won't catch every >stock, and, no, not every stock they catch will be a stunner. But >just because your system doesn't catch every stock doesn't make it a >bad system (CS would not have caught most "internet" stocks--so >what?). If you try to tweak whatever you're doing into something that >does catch everything, you're hardly using a system at all, and the >chances of your losing money are greatly increased. > >Remember that you only need 5-8 stocks. If whatever you're doing >finds those 5-8 and you're happy with them, it doesn't matter if >whatever you're doing didn't catch AOL or EDAC or whatever. The >purpose of CS is to stack the deck in your favor. Let it do its work. > >There will be refreshments after the service. > >--Db > - - ------------------------------ Date: Thu, 18 Jun 1998 17:57:42 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Questions James B. Andrews wrote: > > Is there somewhere that I can read what the following terms mean??? > > OBV/MF > EMA > SloSto > MACD > > I know that OBV means on balance volume but don't know how it works... > > Thank You for your replies > > BTW, the replies to my question the other day about trading the indexes > like stocks was very helpful... Thank You. > > Jim > > -I know it's been explained here already,but if someone could explain,in the shortest,concise form as possible,how to recognize the entry point of a stock using EMA,SLOSTO+MACD,it would be greatly appreciated!!! Thanks in advance - - ------------------------------ Date: Thu, 18 Jun 1998 19:51:20 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] The More Things Change . . . . . <> It's a fine line between developing scenarios and watching the charts with an experienced (cynical, jaundiced, pessimistic, skeptical) eye. I'm trying to just take it day by day rather than assume the market is going to do one thing or another. But I have been through enough to know that drillers are not going to double by next Wednesday and chip equipment won't be rocketing ahead by Tuesday. I knew, for example, that yesterday's euphoria wouldn't last, though I did think it might last through Friday. When a couple of short stops got hit, I went ahead and took them rather than take the chance (one continued up today, the other dropped back a bit then did nothing). What rattles me, though, is not the shortsightedness, but the degree. Until fairly recently it was quarterly, which was bad enough. Now it's getting to be daily. It's like a giant game of chicken and who's going to buy first or sell first. That's one reason why I think it's important to keep your eye on the weeklies instead of getting hammered by the daily noise. For another, many patterns, such as cups and handles, just disappear on a daily chart. There's a reason why O'N uses weekly charts . . . - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Thu, 18 Jun 1998 23:27:01 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] The More Things Change . . . . . When the mkt gets turbulent, I think it's crucial for an investor (as opposed to a trader) to set back and assess the big picture. For several months now, I don't even look at the charts of stocks hitting new highs till the weekend. Sure, I've missed a few that rocketed during the week, but it gives me the weekend to study them knowing I can't do anything till Monday (kinda an emotional time out). For the most part, tho, if I would have liked them on Tuesday, I will still like them on Saturday. And if I don't like them on Saturday, I'm usually glad I didn't look at them on Tuesday and be tempted. From what I've read so far, appears that there are many more skeptics like myself that view the US intervention on the side of the yen as purely, or mostly, political and are waiting for real change by Japan. After all, were we to view this from a purely investment mindset, knowing that we were going to intervene, we first would have gone in and bot up lots of stocks check, then intervene and sell the stocks into strength using the profits to offset possible losses on the foreign currency manipulation (oops, I meant intervention). So far, I seem to be surprisingly insulated from mkt volatility. Russell 2000 continues to underperform, yet my micro and small cap portfolios continue to gain in value. TMBS was a nice boost today. Either I am just real lucky, or else I'm onto something. Will let all of you know when I am sure. As for "assuming the market will do" something, it's still good training as part of your "plan" to have some idea of what the mkt will do. If it lives up to your expectations most of the time, then you may be reading it correctly. If it doesn't then you must be missing something and need to reexamine your methodology. It's one thing to adjust your plan to your experience and reality. But if you have no plan to adjust, I am convinced that you are doomed to failure, esp in mkts like these. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Thursday, June 18, 1998 10:49 PM Subject: Re: [CANSLIM] The More Things Change . . . . . ><those skeptics on Japan getting aggressive at fixing its underlying >economic problems. We had them on the ropes, and let them ride the >clock till the bell rang. > >Tom W>> > > It's a fine line between developing scenarios and watching the >charts with an experienced (cynical, jaundiced, pessimistic, >skeptical) eye. I'm trying to just take it day by day rather than >assume the market is going to do one thing or another. But I have >been through enough to know that drillers are not going to double by >next Wednesday and chip equipment won't be rocketing ahead by Tuesday. > >I knew, for example, that yesterday's euphoria wouldn't last, though I >did think it might last through Friday. When a couple of short stops >got hit, I went ahead and took them rather than take the chance (one >continued up today, the other dropped back a bit then did nothing). >What rattles me, though, is not the shortsightedness, but the degree. >Until fairly recently it was quarterly, which was bad enough. Now >it's getting to be daily. It's like a giant game of chicken and who's >going to buy first or sell first. That's one reason why I think it's >important to keep your eye on the weeklies instead of getting hammered >by the daily noise. For another, many patterns, such as cups and >handles, just disappear on a daily chart. There's a reason why O'N >uses weekly charts . . . > >--Db > - - ------------------------------ Date: Thu, 18 Jun 1998 21:30:44 -0600 From: "Dan Sutton" Subject: [CANSLIM] TELESCAN Weekend review scan I tightened up some of the scan info to try and tweak the IBD weekend review copy. Tonights scan returned approximately 45 stocks. Rather than post the entire file... following are the top 25, sorted by Telescan's relative strength (they call it price rank). URGI,ARTS,AMTR,TMBS,GRH,MTRS,JAKK,AHLS,GLYT,FOSL,UPUP.HBOC,ICP,ESCA,TRAV,SEL AY,CHTT,CTZN,COLB,MISI,BOSA,CPC,CCSC,FDPC,BUTL Rather than waste bandwidth by posting a file that some people may not be interested in, if anyone wants the entire EXCEL file (which includes all the stock candidates as well as the data for each of the criteria included in the search), e-mail me and I will send it to you. - - ------------------------------ Date: Thu, 18 Jun 1998 20:41:22 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] The More Things Change . . . . . << For the most part, tho, if I would have liked them on Tuesday, I will still like them on Saturday. And if I don't like them on Saturday, I'm usually glad I didn't look at them on Tuesday and be tempted.>> This should probably be copied onto a Post-It and stuck to the monitor. <> We'll have to agree to disagree here. I think more people fail as a result of trying to guess or plan or postulate or hypothesize what the market will do rather than just looking at what it's doing, though a corollary to this is getting so wrapped up in the day-to-day than one loses sight of the overall--for example, weekly or even monthly charts. Becoming obsessed with daily events is somewhat akin to not only looking at the trees instead of the forest, but mashing your nose so hard against the bark that you can't even see the tree or even tell what kind of tree it is. It can also lead to trading addiction which, I'm afraid, a great many beginners fall prey to. How can they help it? Look at all the wonderful toys we have . . . In only a couple of years online, I've seen a depressing number of people fall by the wayside because they lost everything. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ End of canslim-digest V2 #292 ***************************** 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.