From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3359 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, June 4 2003 Volume 02 : Number 3359 In this issue: RE: [CANSLIM] SHFL Re: [CANSLIM] TALX Breakout [CANSLIM] COLM Re: Re: [CANSLIM] breakouts to come Fw: Re: [CANSLIM] breakouts to come ---------------------------------------------------------------------- Date: Wed, 4 Jun 2003 11:21:23 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] SHFL This is a multi-part message in MIME format. - ------=_NextPart_000_0004_01C32A8B.6E33B8D0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Hi Avi, Looking at the SHFL chart, I see some yellow flag price/volume action in the last 4 days: http://www.cwhcharts.com/katherine/SHFL060403.JPG The last day on the chart is intraday (today), so doesn't yet reflect the price/volume for end of day, so this can change. When a chart seems iffy to me, I like to look at other risk factors to see if I can get some additional clues. In this case, I went to the industry to see what is happening technically. Overall, it's a mixed bag with many former leaders like MGAM and PENN in a big technical sink hole, GTK with slipping earnings growth, some new leaders shooting up on good volume, and other current leaders giving signs they'd like to roll over. If you look at the industry chart, you can see how the average technical behavior of the stocks has been lagging the market: http://www.cwhcharts.com/katherine/LeisureGaming053003.JPG Another way of looking at it is to look at the fundamental/technical condition of the stocks in the industry over time. This first matrix shows how the stocks distributed across the matrix last month (5/5/3): http://www.cwhcharts.com/katherine/LeisureGamingZones050503.JPG At the time, there was a fairly good representation of "good" stocks in the green zone. But, if you look at the current matrix, you can see that the stocks have shifted to the left, meaning that they have fallen back technically. Here's the matrix as of 6/3/3: http://www.cwhcharts.com/katherine/LeisureGamingZones060303.JPG I'm guessing that the odds favor SHFL pulling back to support at best, rolling over at worst. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Bistricer, Avi Sent: Monday, June 02, 2003 2:30 PM To: canslim@lists.xmission.com Subject: [CANSLIM] SHFL Any comment on its action in the last few days? I'm in at $24.5. Thanks Avi Bistricer, DBA 212.460.6695 bistricera@coned.com -----Original Message----- From: Rolf Hertenstein [mailto:rolfh@mindspring.com] Sent: Monday, June 02, 2003 1:39 PM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Hi Bill - Are you referring to IBD's Screen of the Day? I think in a recent discussion of the market, IBD mentioned that further breakouts at this stage of this bull run (however long it'll be) are more likely to be 'second rate'. The real leaders have broken out and already have good gains. This won't stop me from looking of course. Rolf For list creation, I'd also do a quick scan of the daily updated stocks featured on the IBD site for possible setup/entry points. -- Bill ----------------------------------------------------------------- I was just going through the charts of IBD100 last night, and was thinking the exact same thing. Are there any other lists of high quality CANSLIM stocks that should be scanned to check for proper price patterns? Chris ----- Original Message ----- From: Ann Hollingworth To: CANSLIM Listserv Sent: Monday, June 02, 2003 4:28 AM Subject: [CANSLIM] breakouts to come It seems to me, as I hunt through WR and IBD100, that there are a lot of overextended stocks, and not to many on the right side of their cup or ready to break out. It would seem to me that there could be two reasons for this: 1. The rally is going to wane. 2. The WR and IBD100 do not produce stocks at this state of their development. Any comments?? Ann - ------=_NextPart_000_0004_01C32A8B.6E33B8D0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Avi,
 
Looking at the SHFL chart, I see = some yellow=20 flag price/volume action in the last 4 days:
 
http://www.cwh= charts.com/katherine/SHFL060403.JPG
 
The last day on the chart is = intraday=20 (today), so doesn't yet reflect the price/volume for end of day, so this = can=20 change.
 
When a chart seems iffy to me, I = like to=20 look at other risk factors to see if I can get some additional clues. In = this=20 case, I went to the industry to see what is happening technically. = Overall, it's=20 a mixed bag with many former leaders like MGAM and PENN in a big = technical=20 sink hole, GTK with slipping earnings growth, some new leaders shooting = up on=20 good volume, and other current leaders giving signs they'd like to = roll=20 over. If you look at the industry chart, you can see how the average = technical=20 behavior of the stocks has been lagging the market:
 
http:= //www.cwhcharts.com/katherine/LeisureGaming053003.JPG
 
Another way of looking at it is to = look at=20 the fundamental/technical condition of the stocks  in the industry = over=20 time. This first matrix shows how the stocks distributed across the = matrix last=20 month (5/5/3):
 
= http://www.cwhcharts.com/katherine/LeisureGamingZones050503.JPG
 
At the time, there was a fairly = good=20 representation of "good" stocks in the green zone. But, if you look at = the=20 current matrix, you can see that the stocks have shifted to the left, = meaning=20 that they have fallen back technically. Here's the matrix as of=20 6/3/3:
 
= http://www.cwhcharts.com/katherine/LeisureGamingZones060303.JPG
 
I'm guessing that the odds favor = SHFL=20 pulling back to support at best, rolling over at worst.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Bistricer,=20 Avi
Sent: Monday, June 02, 2003 2:30 PM
To:=20 canslim@lists.xmission.com
Subject: [CANSLIM]=20 SHFL

    Any comment on its action in = the last=20 few days? I'm in at $24.5. Thanks
        
 

Avi Bistricer, DBA =
212.460.6695
bistricera@coned.com

-----Original Message-----
From: Rolf Hertenstein = [mailto:rolfh@mindspring.com]
Sent: Monday, June 02, 2003 = 1:39=20 PM
To: canslim@lists.xmission.com
Subject: Re: = Re:=20 [CANSLIM] breakouts to come

Hi Bill - Are you referring = to IBD's=20 Screen of the Day?
 
I think in a recent discussion of = the market,=20 IBD mentioned that further breakouts at this stage of this bull run = (however=20 long it'll be) are more likely to be 'second rate'.  The real = leaders=20 have broken out and already have good gains.  This won't stop = me from=20 looking of course.
 
 Rolf
For list creation, I'd also do a = quick scan=20 of the daily updated stocks featured on the IBD site for possible=20 setup/entry=20 = points.

--
Bill

 

--------------------------= - ---------------------------------------
I=20 was just going through the charts of IBD100 last night, and was=20 thinking
the exact same thing.  Are there any other lists = of high=20 quality CANSLIM
stocks that should be scanned to check for = proper price=20 patterns?

Chris
  ----- Original Message ----- =
 =20 From: Ann Hollingworth
  To: CANSLIM Listserv
  = Sent:=20 Monday, June 02, 2003 4:28 AM
  Subject: [CANSLIM] = breakouts to=20 come


  It seems to me, as I hunt through WR and = IBD100,=20 that there are a lot of
overextended stocks, and not to many = on the=20 right side of their cup or
ready to break out.

  It = would=20 seem to me that there could be two reasons for this:

  = 1. The=20 rally is going to wane.

  2. The WR and IBD100 do not = produce=20 stocks at this state of their
development.

  Any=20 comments??

 =20 Ann

- ------=_NextPart_000_0004_01C32A8B.6E33B8D0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 4 Jun 2003 12:34:47 -0700 (PDT) From: Bill Triffet Subject: Re: [CANSLIM] TALX Breakout - ------=_Part_7574_6693894.1054755250782 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Katherine, Your last chart speaks volumes about RS and how it can rapidly change. I particularly like the various RS indicators on the CWH.com charts. This is somthing that has been missing on the IBD charts. I think if one were to go back through some the the WR or SITN charts in the IBD paper you'd find more than a few successful breakouts in the 60-70 range. They just don't publish them till they are "safe". (g) I for one allow an RS around 60 as long as it's rising. - -- Bill - ----------------------------------------------------------------- >Hi All, Just an interesting observation given our recent discussion here on the IBD100 and Richard's "reverse due diligence" question yesterday on SCHN. From today's Big Picture: "Talx, (TALX) a new addition to the Investor's Business Daily 100, retreated 1.28 to 17.72. The employment services firm had rallied almost 41% since breaking out May 23." Interestingly, on the it was setting up for the breakout (5/22), it had an RS of *52*. After the close on the breakout day (5/23), the RS rose to a still laggard *65*. It wasn't until the next trading day (5/27) that the RS rose to a non-laggard 79. As of yesterday's close (6/3), the RS is now 85. (All RS's are IBD numbers) While this is a somewhat extreme example, it demonstrates a few important principles: (1) Ranking systems which slot one stock against another tend to be fairly volatile from one day to the next. (2) A stock will rise *very* quickly from a laggard (<70) to a non-laggard (>=70) RS. (3) Many "good" stocks will breakout with a relatively low RS. (4) Once a stock appears in the IBD100, it will have a high RS, but there is no indication as to *when* it achieved that RS nor how quickly it rose to get to non-laggard and/or "leader" status. I'm not suggesting one screen for stocks with and RS of 52, but it does show that it's easy to miss an up and coming stock if the RS cutoff is set to a restrictive interpretation of WON's guidelines, i.e. RS = 80 or 85. Here's a chart showing the RSRank over time: http://www.cwhcharts.com/katherine/TALX060303.JPG (Note, our RSRanks tend to rise a bit faster than IBD's because we do not include Canadian Stocks in our database, as does IBD/DGO. As a result, the numbers you see in our chart are slightly higher than IBD's RS numbers I quoted above). Katherine - ------=_Part_7574_6693894.1054755250782 Content-Type: TEXT/HTML; name=MESSAGE.HTML; charset=iso-8859-1 Content-Transfer-Encoding: 7bit Content-Disposition: attachment; filename=MESSAGE.HTML
Hi All,
 
Just an interesting observation given our recent discussion here on the IBD100 and Richard's "reverse due diligence" question yesterday on SCHN. From today's Big Picture:
 
"Talx, (TALX) a new addition to the Investor's Business Daily 100, retreated 1.28 to 17.72. The employment services firm had rallied almost 41% since breaking out May 23."
 
Interestingly, on the it was setting up for the breakout (5/22), it had an RS of *52*. After the close on the breakout day (5/23), the RS rose to a still laggard *65*. It wasn't until the next trading day (5/27) that the RS rose to a non-laggard 79. As of yesterday's close (6/3), the RS is now 85. (All RS's are IBD numbers) While this is a somewhat extreme example, it demonstrates a few important principles:
 
(1) Ranking systems which slot one stock against another tend to be fairly volatile from one day to the next.
(2) A stock will rise *very* quickly from a laggard (<70) to a non-laggard (>=70) RS.
(3) Many "good" stocks will breakout with a relatively low RS.
(4) Once a stock appears in the IBD100, it will have a high RS, but there is no indication as to *when* it achieved that RS nor how quickly it rose to get to non-laggard and/or "leader" status.
 
I'm not suggesting one screen for stocks with and RS of  52, but it does show that it's easy to miss an up and coming stock if the RS cutoff is set to a restrictive interpretation of WON's guidelines, i.e. RS = 80 or 85.
 
Here's a chart showing the RSRank over time:
http://www.cwhcharts.com/katherine/TALX060303.JPG 
 
(Note, our RSRanks tend to rise a bit faster than IBD's because we do not include Canadian Stocks in our database, as does IBD/DGO. As a result, the numbers you see in our chart are slightly higher than IBD's RS numbers I quoted above).
 
Katherine
 
 
 
- ------=_Part_7574_6693894.1054755250782-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 4 Jun 2003 16:23:45 -0500 From: michael_niemotka@baxter.com Subject: [CANSLIM] COLM Is COLM showing a wedging action? Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 4 Jun 2003 20:03:37 -0400 From: "Ann Hollingworth" Subject: Re: Re: [CANSLIM] breakouts to come This is a multi-part message in MIME format. - ------=_NextPart_000_0096_01C32AD4.62C0ED30 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Katherine, Thanks for explaining all this. I' m not sure I can afford your website, = but will try the 7-day trial during summer vacation. In the meantime, I can't figure out how to "browse" the site as a guest. How do I do that? (I don't want to do my 7-day trial yet.) Ann ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, June 03, 2003 12:42 AM Subject: RE: Re: [CANSLIM] breakouts to come Hi Ann and all, I have to agree with Bill on this. By the time something makes it to a = list like the WR or the IBD100, they've already *become* the leaders. It = makes a heck of a lot more sense to catch them as they're *becoming* = leaders. That is, if RS>=3D85 is considered a leader, then how the heck = did they get there? They rose from a lower RSRank to get there in the = first place. If they were rising in RSRank, then they were *rising in = price.* While looking for outperformance to the market and to other = stocks is a cornerstone of CANSLIM investing, I've never agreed that = mining should only be done after the stock is at RSRank 80 or 85. It's = true that leaders will pull back and offer new entry points, so having a = list of leaders is helpful. But the problem is, if you want to get the = best part of the move, you've got to be watching these guys as they set = up and start the lion's share of the move. The IBD started publishing an = index of the WR stocks over time, showing a mild percentage gain vs. a = sink hole return in the indexes during the Bear, but I suspect that if = one were to instead publish an index of stocks breaking out of sound = bases starting at a non-laggard RSRank>=3D70, then the index would be = substantially higher. Years ago, a friend of mine and I would meet every Saturday for coffee = and pour over the IBD together. At the time, he kept asking why the heck = all the stocks mentioned in the paper didn't offer up a good entry = point. Most of the time, the lists of stocks, the minigraphs, etc. were = already too extended. That meant that in order to use the IBD itself for = mining, we had to sift through the lilliputian stock tables highlighting = stocks from RSRank 70 and up, highlight up and coming Industries, add = the stocks from "Where the Big Money is Flowing" then one by one look at = all the charts. It was exhausting and incredibly time consuming. My = conclusion after practically loosing my eyesight (and my Saturdays) was = that while the IBD is an incredible resource for current news, = information on companies, keeping tabs on the Market and learning about = CANSLIM, it's a lousy mining tool. Once I'd figured that out, I set out to instead devise a methodology = that would let me mine for stocks that met the minimum requirements for = a CANSLIM-quality stock and were *just* beginning to outperform and = setup for a breakout. The goal was to own a stock before it showed up in = the IBD. Just as Bill suggested, seeing it in the IBD *after* I'd found = it was the ultimate test. Or, another way of saying it was that I didn't = want to see a single stock mentioned in the IBD that I didn't already = know about. For the most part, I think that implies that at the very = least, one needs some sort of technical software to do this. Many here = use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and = each has their own particular approach. But even with these tools, it = still requires looking through a lot of charts every day to make sure = you're seeing the stocks *as* they set up. As I'd rather be hiking the = Grand Canyon or having a margarita by the pool, that time spent = motivated me to develop even better tools for finding stocks setting up = for a breakout, leading to my partnership with Mike at the cwhcharts.com = site. That means that there is a third alternative to sifting through = the IBD or through a lot of charts, and that is to let a computer do all = that time consuming work for you. Our approach is to let the computer = find *all* the non-laggard stocks currently setting up in cup with = handle bases, put them on a watchlist, and then let us know = automatically if they are breaking out above their pivots. Now *there's* = an excuse to have another dip in the pool! Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Ann Hollingworth Sent: Monday, June 02, 2003 9:01 PM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Thanks, Bill, and Rolf, for the watch list ideas. I may have to = change the source of my minings. Ann=20 -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein Sent: Monday, June 02, 2003 11:39 AM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Hi Bill - Are you referring to IBD's Screen of the Day? I think in a recent discussion of the market, IBD mentioned that = further breakouts at this stage of this bull run (however long it'll be) = are more likely to be 'second rate'. The real leaders have broken out = and already have good gains. This won't stop me from looking of course. Rolf=20 ----- Original Message -----=20 From: Bill Triffet=20 To: canslim@lists.xmission.com=20 Sent: Monday, June 02, 2003 12:22 PM Subject: Re: Re: [CANSLIM] breakouts to come I use WR as a confirmation that I bought right. I like to see one = of my buys show up there AFTER I've bought it. I also find those graphs = tend to be "Monday morning quarterbacking". I think it's IBD's way of = showing how you how a stock already broke out - not time to buy. I also = find many of them have broken out of upwards trending handles which is = troubling to me. As far as the IBD100, I like to track #25-100 for increasing = strength and a proper entry points. By design, most of the top will be = already extended. For list creation, I'd also do a quick scan of the daily updated = stocks featured on the IBD site for possible setup/entry points. Btw, the use of an offline charting tool such as Quotes Plus is a = real time saver when you need to look at lots of stocks for list = building. The charts pop up instantly allowing you to make quick end of = day scans. Doing it online - even with a highspeed connection is much = slower though you see them intraday.=20 -- Bill =20 ----------------------------------------------------------------- I was just going through the charts of IBD100 last night, and was = thinking the exact same thing. Are there any other lists of high quality = CANSLIM stocks that should be scanned to check for proper price patterns? Chris ----- Original Message -----=20 From: Ann Hollingworth=20 To: CANSLIM Listserv=20 Sent: Monday, June 02, 2003 4:28 AM Subject: [CANSLIM] breakouts to come It seems to me, as I hunt through WR and IBD100, that there are = a lot of=20 overextended stocks, and not to many on the right side of their = cup or ready to break out. It would seem to me that there could be two reasons for this: 1. The rally is going to wane. 2. The WR and IBD100 do not produce stocks at this state of = their development. Any comments?? Ann - ------=_NextPart_000_0096_01C32AD4.62C0ED30 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine,
 
Thanks for explaining all this. I' m = not sure I can=20 afford your website, but will try the 7-day trial during summer=20 vacation.
 
In the meantime, I can't figure out how = to "browse"=20 the site as a guest.
 
How do I do that? (I don't want to do = my 7-day=20 trial yet.)
 
Ann
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Tuesday, June 03, 2003 = 12:42=20 AM
Subject: RE: Re: [CANSLIM] = breakouts to=20 come

Hi Ann and all,
 
I have to agree with Bill on = this. By the=20 time something makes it to a list like the WR or the IBD100, they've = already=20 *become* the leaders. It makes a heck of a lot more sense to catch = them as=20 they're *becoming* leaders. That is, if RS>=3D85 is considered a = leader, then=20 how the heck did they get there? They rose from a lower RSRank to get = there in=20 the first place. If they were rising in RSRank, then they were *rising = in=20 price.* While looking for outperformance to the market and to other = stocks is=20 a cornerstone of CANSLIM investing, I've never agreed that mining = should only=20 be done after the stock is at RSRank 80 or 85. It's true that leaders = will=20 pull back and offer new entry points, so having a list of leaders is = helpful.=20 But the problem is, if you want to get the best part of the move, = you've got=20 to be watching these guys as they set up and start the lion's share of = the=20 move. The IBD started publishing an index of the WR stocks over time, = showing=20 a mild percentage gain vs. a sink hole return in the indexes = during the=20 Bear, but I suspect that if one were to instead publish an index of = stocks=20 breaking out of sound bases starting at a non-laggard RSRank>=3D70, = then the=20 index would be substantially higher.
 
Years ago, a friend of mine and = I would=20 meet every Saturday for coffee and pour over the IBD together. At the = time, he=20 kept asking why the heck all the stocks mentioned in the paper didn't = offer up=20 a good entry point. Most of the time, the lists of stocks, the = minigraphs,=20 etc. were already too extended. That meant that in order to use the = IBD itself=20 for mining, we had to sift through the lilliputian stock tables = highlighting=20 stocks from RSRank 70 and up, highlight up and coming Industries, add = the=20 stocks from "Where the Big Money is Flowing" then one by one look = at all=20 the charts. It was exhausting and incredibly time consuming. My = conclusion=20 after practically loosing my eyesight (and my Saturdays) was that = while the=20 IBD is an incredible resource for current news, information on = companies,=20 keeping tabs on the Market and learning about CANSLIM, it's a lousy = mining=20 tool.
 
Once I'd figured that out, I set = out to=20 instead devise a methodology that would let me mine for stocks that = met the=20 minimum requirements for a CANSLIM-quality stock and were *just* = beginning to=20 outperform and setup for a breakout. The goal was to own a stock = before it=20 showed up in the IBD. Just as Bill suggested, seeing it in the IBD = *after* I'd=20 found it was the ultimate test. Or, another way of saying it was that = I didn't=20 want to see a single stock mentioned in the IBD that I didn't already = know=20 about. For the most part, I think that implies that at the very=20 least, one needs some sort of technical software to do this. Many = here=20 use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and = each has=20 their own particular approach. But even with these tools, it still = requires=20 looking through a lot of charts every day to make sure you're seeing = the=20 stocks *as* they set up. As I'd rather be hiking the Grand Canyon or = having a=20 margarita by the pool, that time spent motivated me to develop even = better=20 tools for finding stocks setting up for a breakout, leading to my = partnership=20 with Mike at the cwhcharts.com site. That means that there is a third=20 alternative to sifting through the IBD or through a lot of charts, and = that is=20 to let a computer do all that time consuming work for you. Our = approach is to=20 let the computer find *all* the non-laggard = stocks currently=20 setting up in cup with handle bases, put them on a watchlist, and then = let us=20 know automatically if they are breaking out above their pivots. Now = *there's*=20 an excuse to have another dip in the pool!
 
Katherine
 
 -----Original=20 Message-----
From: owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Ann=20 Hollingworth
Sent: Monday, June 02, 2003 9:01 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: Re: [CANSLIM] = breakouts to=20 come

Thanks, Bill, and Rolf, for the = watch list=20 ideas. I may have to change the source of my minings.
Ann 
 
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf=20 Hertenstein
Sent: Monday, June 02, 2003 11:39 = AM
To:=20 canslim@lists.xmission.com
Subject: Re: Re: [CANSLIM] = breakouts to=20 come

Hi Bill - Are you referring = to IBD's=20 Screen of the Day?
 
I think in a recent discussion of = the market,=20 IBD mentioned that further breakouts at this stage of this bull run = (however=20 long it'll be) are more likely to be 'second rate'.  The real = leaders=20 have broken out and already have good gains.  This won't stop = me from=20 looking of course.
 
 Rolf 
----- Original Message ----- =
From:=20 Bill=20 Triffet
To: canslim@lists.xmission.com= =20
Sent: Monday, June 02, 2003 = 12:22=20 PM
Subject: Re: Re: [CANSLIM] = breakouts=20 to come

I use WR as a confirmation that I bought right. I = like to=20 see one of my buys show up there AFTER I've bought it. I also find = those=20 graphs tend to be "Monday morning quarterbacking". I think it's = IBD's way=20 of showing how you how a stock already broke out - not time to = buy. I also=20 find many of them have broken out of upwards trending handles = which is=20 troubling to me.

As far as the IBD100, I like to track = #25-100 for=20 increasing strength and a proper entry points. By design, most of = the top=20 will be already extended.

For list creation, I'd also do a = quick=20 scan of the daily updated stocks featured on the IBD site for = possible=20 setup/entry points.

Btw, the use of an offline charting = tool such=20 as Quotes Plus is a real time saver when you need to look at lots = of=20 stocks for list building. The charts pop up instantly allowing you = to make=20 quick end of day scans. Doing it online - even with a highspeed = connection=20 is much slower though you see them intraday.=20 =

--
Bill

 

---------------------------------= - --------------------------------
I=20 was just going through the charts of IBD100 last night, and was=20 thinking
the exact same thing.  Are there any other lists = of high=20 quality CANSLIM
stocks that should be scanned to check for = proper price=20 patterns?

Chris
  ----- Original Message ----- =
 =20 From: Ann Hollingworth
  To: CANSLIM Listserv
  = Sent:=20 Monday, June 02, 2003 4:28 AM
  Subject: [CANSLIM] = breakouts to=20 come


  It seems to me, as I hunt through WR and = IBD100,=20 that there are a lot of
overextended stocks, and not to many = on the=20 right side of their cup or
ready to break out.

  It = would=20 seem to me that there could be two reasons for this:

  = 1. The=20 rally is going to wane.

  2. The WR and IBD100 do not = produce=20 stocks at this state of their
development.

  Any=20 comments??

 =20 Ann

- ------=_NextPart_000_0096_01C32AD4.62C0ED30-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 4 Jun 2003 20:20:41 -0400 From: "Ann Hollingworth" Subject: Fw: Re: [CANSLIM] breakouts to come This is a multi-part message in MIME format. - ------=_NextPart_000_00BB_01C32AD6.C4E5D370 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Sorry, everyone. I meant to send to Katherine alone. Didn't mean to bore you with my summer vacation plans! Ann - ----- Original Message -----=20 From: Ann Hollingworth=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, June 04, 2003 8:03 PM Subject: Re: Re: [CANSLIM] breakouts to come Katherine, Thanks for explaining all this. I' m not sure I can afford your website, = but will try the 7-day trial during summer vacation. In the meantime, I can't figure out how to "browse" the site as a guest. How do I do that? (I don't want to do my 7-day trial yet.) Ann ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, June 03, 2003 12:42 AM Subject: RE: Re: [CANSLIM] breakouts to come Hi Ann and all, I have to agree with Bill on this. By the time something makes it to a = list like the WR or the IBD100, they've already *become* the leaders. It = makes a heck of a lot more sense to catch them as they're *becoming* = leaders. That is, if RS>=3D85 is considered a leader, then how the heck = did they get there? They rose from a lower RSRank to get there in the = first place. If they were rising in RSRank, then they were *rising in = price.* While looking for outperformance to the market and to other = stocks is a cornerstone of CANSLIM investing, I've never agreed that = mining should only be done after the stock is at RSRank 80 or 85. It's = true that leaders will pull back and offer new entry points, so having a = list of leaders is helpful. But the problem is, if you want to get the = best part of the move, you've got to be watching these guys as they set = up and start the lion's share of the move. The IBD started publishing an = index of the WR stocks over time, showing a mild percentage gain vs. a = sink hole return in the indexes during the Bear, but I suspect that if = one were to instead publish an index of stocks breaking out of sound = bases starting at a non-laggard RSRank>=3D70, then the index would be = substantially higher. Years ago, a friend of mine and I would meet every Saturday for coffee = and pour over the IBD together. At the time, he kept asking why the heck = all the stocks mentioned in the paper didn't offer up a good entry = point. Most of the time, the lists of stocks, the minigraphs, etc. were = already too extended. That meant that in order to use the IBD itself for = mining, we had to sift through the lilliputian stock tables highlighting = stocks from RSRank 70 and up, highlight up and coming Industries, add = the stocks from "Where the Big Money is Flowing" then one by one look at = all the charts. It was exhausting and incredibly time consuming. My = conclusion after practically loosing my eyesight (and my Saturdays) was = that while the IBD is an incredible resource for current news, = information on companies, keeping tabs on the Market and learning about = CANSLIM, it's a lousy mining tool. Once I'd figured that out, I set out to instead devise a methodology = that would let me mine for stocks that met the minimum requirements for = a CANSLIM-quality stock and were *just* beginning to outperform and = setup for a breakout. The goal was to own a stock before it showed up in = the IBD. Just as Bill suggested, seeing it in the IBD *after* I'd found = it was the ultimate test. Or, another way of saying it was that I didn't = want to see a single stock mentioned in the IBD that I didn't already = know about. For the most part, I think that implies that at the very = least, one needs some sort of technical software to do this. Many here = use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and = each has their own particular approach. But even with these tools, it = still requires looking through a lot of charts every day to make sure = you're seeing the stocks *as* they set up. As I'd rather be hiking the = Grand Canyon or having a margarita by the pool, that time spent = motivated me to develop even better tools for finding stocks setting up = for a breakout, leading to my partnership with Mike at the cwhcharts.com = site. That means that there is a third alternative to sifting through = the IBD or through a lot of charts, and that is to let a computer do all = that time consuming work for you. Our approach is to let the computer = find *all* the non-laggard stocks currently setting up in cup with = handle bases, put them on a watchlist, and then let us know = automatically if they are breaking out above their pivots. Now *there's* = an excuse to have another dip in the pool! Katherine -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Ann Hollingworth Sent: Monday, June 02, 2003 9:01 PM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Thanks, Bill, and Rolf, for the watch list ideas. I may have to = change the source of my minings. Ann=20 -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein Sent: Monday, June 02, 2003 11:39 AM To: canslim@lists.xmission.com Subject: Re: Re: [CANSLIM] breakouts to come Hi Bill - Are you referring to IBD's Screen of the Day? I think in a recent discussion of the market, IBD mentioned that = further breakouts at this stage of this bull run (however long it'll be) = are more likely to be 'second rate'. The real leaders have broken out = and already have good gains. This won't stop me from looking of course. Rolf=20 ----- Original Message -----=20 From: Bill Triffet=20 To: canslim@lists.xmission.com=20 Sent: Monday, June 02, 2003 12:22 PM Subject: Re: Re: [CANSLIM] breakouts to come I use WR as a confirmation that I bought right. I like to see one = of my buys show up there AFTER I've bought it. I also find those graphs = tend to be "Monday morning quarterbacking". I think it's IBD's way of = showing how you how a stock already broke out - not time to buy. I also = find many of them have broken out of upwards trending handles which is = troubling to me. As far as the IBD100, I like to track #25-100 for increasing = strength and a proper entry points. By design, most of the top will be = already extended. For list creation, I'd also do a quick scan of the daily updated = stocks featured on the IBD site for possible setup/entry points. Btw, the use of an offline charting tool such as Quotes Plus is a = real time saver when you need to look at lots of stocks for list = building. The charts pop up instantly allowing you to make quick end of = day scans. Doing it online - even with a highspeed connection is much = slower though you see them intraday.=20 -- Bill =20 ----------------------------------------------------------------- I was just going through the charts of IBD100 last night, and was = thinking the exact same thing. Are there any other lists of high quality = CANSLIM stocks that should be scanned to check for proper price patterns? Chris ----- Original Message -----=20 From: Ann Hollingworth=20 To: CANSLIM Listserv=20 Sent: Monday, June 02, 2003 4:28 AM Subject: [CANSLIM] breakouts to come It seems to me, as I hunt through WR and IBD100, that there are = a lot of=20 overextended stocks, and not to many on the right side of their = cup or ready to break out. It would seem to me that there could be two reasons for this: 1. The rally is going to wane. 2. The WR and IBD100 do not produce stocks at this state of = their development. Any comments?? Ann - ------=_NextPart_000_00BB_01C32AD6.C4E5D370 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Sorry, everyone.
I meant to send to Katherine = alone.
Didn't mean to bore you with my summer = vacation=20 plans!
Ann
 
----- Original Message -----=20
From: Ann = Hollingworth=20
Sent: Wednesday, June 04, 2003 8:03 PM
Subject: Re: Re: [CANSLIM] breakouts to come

Katherine,
 
Thanks for explaining all this. I' m = not sure I can=20 afford your website, but will try the 7-day trial during summer=20 vacation.
 
In the meantime, I can't figure out how = to "browse"=20 the site as a guest.
 
How do I do that? (I don't want to do = my 7-day=20 trial yet.)
 
Ann
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Tuesday, June 03, 2003 = 12:42=20 AM
Subject: RE: Re: [CANSLIM] = breakouts to=20 come

Hi Ann and all,
 
I have to agree with Bill on = this. By the=20 time something makes it to a list like the WR or the IBD100, they've = already=20 *become* the leaders. It makes a heck of a lot more sense to catch = them as=20 they're *becoming* leaders. That is, if RS>=3D85 is considered a = leader, then=20 how the heck did they get there? They rose from a lower RSRank to get = there in=20 the first place. If they were rising in RSRank, then they were *rising = in=20 price.* While looking for outperformance to the market and to other = stocks is=20 a cornerstone of CANSLIM investing, I've never agreed that mining = should only=20 be done after the stock is at RSRank 80 or 85. It's true that leaders = will=20 pull back and offer new entry points, so having a list of leaders is = helpful.=20 But the problem is, if you want to get the best part of the move, = you've got=20 to be watching these guys as they set up and start the lion's share of = the=20 move. The IBD started publishing an index of the WR stocks over time, = showing=20 a mild percentage gain vs. a sink hole return in the indexes = during the=20 Bear, but I suspect that if one were to instead publish an index of = stocks=20 breaking out of sound bases starting at a non-laggard RSRank>=3D70, = then the=20 index would be substantially higher.
 
Years ago, a friend of mine and = I would=20 meet every Saturday for coffee and pour over the IBD together. At the = time, he=20 kept asking why the heck all the stocks mentioned in the paper didn't = offer up=20 a good entry point. Most of the time, the lists of stocks, the = minigraphs,=20 etc. were already too extended. That meant that in order to use the = IBD itself=20 for mining, we had to sift through the lilliputian stock tables = highlighting=20 stocks from RSRank 70 and up, highlight up and coming Industries, add = the=20 stocks from "Where the Big Money is Flowing" then one by one look = at all=20 the charts. It was exhausting and incredibly time consuming. My = conclusion=20 after practically loosing my eyesight (and my Saturdays) was that = while the=20 IBD is an incredible resource for current news, information on = companies,=20 keeping tabs on the Market and learning about CANSLIM, it's a lousy = mining=20 tool.
 
Once I'd figured that out, I set = out to=20 instead devise a methodology that would let me mine for stocks that = met the=20 minimum requirements for a CANSLIM-quality stock and were *just* = beginning to=20 outperform and setup for a breakout. The goal was to own a stock = before it=20 showed up in the IBD. Just as Bill suggested, seeing it in the IBD = *after* I'd=20 found it was the ultimate test. Or, another way of saying it was that = I didn't=20 want to see a single stock mentioned in the IBD that I didn't already = know=20 about. For the most part, I think that implies that at the very=20 least, one needs some sort of technical software to do this. Many = here=20 use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and = each has=20 their own particular approach. But even with these tools, it still = requires=20 looking through a lot of charts every day to make sure you're seeing = the=20 stocks *as* they set up. As I'd rather be hiking the Grand Canyon or = having a=20 margarita by the pool, that time spent motivated me to develop even = better=20 tools for finding stocks setting up for a breakout, leading to my = partnership=20 with Mike at the cwhcharts.com site. That means that there is a third=20 alternative to sifting through the IBD or through a lot of charts, and = that is=20 to let a computer do all that time consuming work for you. Our = approach is to=20 let the computer find *all* the non-laggard = stocks currently=20 setting up in cup with handle bases, put them on a watchlist, and then = let us=20 know automatically if they are breaking out above their pivots. Now = *there's*=20 an excuse to have another dip in the pool!
 
Katherine
 
 -----Original=20 Message-----
From: owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Ann=20 Hollingworth
Sent: Monday, June 02, 2003 9:01 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: Re: [CANSLIM] = breakouts to=20 come

Thanks, Bill, and Rolf, for the = watch list=20 ideas. I may have to change the source of my minings.
Ann 
 
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf=20 Hertenstein
Sent: Monday, June 02, 2003 11:39 = AM
To:=20 canslim@lists.xmission.com
Subject: Re: Re: [CANSLIM] = breakouts to=20 come

Hi Bill - Are you referring = to IBD's=20 Screen of the Day?
 
I think in a recent discussion of = the market,=20 IBD mentioned that further breakouts at this stage of this bull run = (however=20 long it'll be) are more likely to be 'second rate'.  The real = leaders=20 have broken out and already have good gains.  This won't stop = me from=20 looking of course.
 
 Rolf 
----- Original Message ----- =
From:=20 Bill=20 Triffet
To: canslim@lists.xmission.com= =20
Sent: Monday, June 02, 2003 = 12:22=20 PM
Subject: Re: Re: [CANSLIM] = breakouts=20 to come

I use WR as a confirmation that I bought right. I = like to=20 see one of my buys show up there AFTER I've bought it. I also find = those=20 graphs tend to be "Monday morning quarterbacking". I think it's = IBD's way=20 of showing how you how a stock already broke out - not time to = buy. I also=20 find many of them have broken out of upwards trending handles = which is=20 troubling to me.

As far as the IBD100, I like to track = #25-100 for=20 increasing strength and a proper entry points. By design, most of = the top=20 will be already extended.

For list creation, I'd also do a = quick=20 scan of the daily updated stocks featured on the IBD site for = possible=20 setup/entry points.

Btw, the use of an offline charting = tool such=20 as Quotes Plus is a real time saver when you need to look at lots = of=20 stocks for list building. The charts pop up instantly allowing you = to make=20 quick end of day scans. Doing it online - even with a highspeed = connection=20 is much slower though you see them intraday.=20 =

--
Bill

 

---------------------------------= - --------------------------------
I=20 was just going through the charts of IBD100 last night, and was=20 thinking
the exact same thing.  Are there any other lists = of high=20 quality CANSLIM
stocks that should be scanned to check for = proper price=20 patterns?

Chris
  ----- Original Message ----- =
 =20 From: Ann Hollingworth
  To: CANSLIM Listserv
  = Sent:=20 Monday, June 02, 2003 4:28 AM
  Subject: [CANSLIM] = breakouts to=20 come


  It seems to me, as I hunt through WR and = IBD100,=20 that there are a lot of
overextended stocks, and not to many = on the=20 right side of their cup or
ready to break out.

  It = would=20 seem to me that there could be two reasons for this:

  = 1. The=20 rally is going to wane.

  2. The WR and IBD100 do not = produce=20 stocks at this state of their
development.

  Any=20 comments??

 =20 Ann

- ------=_NextPart_000_00BB_01C32AD6.C4E5D370-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #3359 ****************************** 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.