Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] MBT
Date: Sat, 23 Aug 2003 11:11:44 -0500
Previous Article (by Date): [CANSLIM] MBT "Dave Wood"
Top of Thread: [CANSLIM] MBT "Dave Wood"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format. - ------=_NextPart_000_0061_01C36967.55F62AD0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Hi Dave, The 7 week consolidation isn't particularly "ideal". As you noted, the base itself is a day shy, the handle is a bit short, the volume on the break above the pivot is on 108% ADV, the volume pattern on the right side of the cup is low. The guidelines that WON gives for ideal bases are just that, guidelines. They're primarily designed to help separate the wheat from the chaff when looking at a lot of charts and deciding on which stock to pursue. The truth is that while "ideal" bases tend to have lower risk, breaks from less than ideal bases can and do work. From a technical perspective, a stock such as MBT on its gap up above the recent consolidation shows some indication that it may be ready to move on. On another level, a short base, a break above the consolidation on a gap up and low volume after a very good rise may also be an indication that the run is over. I'd personally stay away from something like this because the signals are mixed. Weekly chart for context: http://www.breakoutwatch.com/katherine/MBT082203Wkly.JPG Daily chart with base notations: http://www.breakoutwatch.com/katherine/MBT082203.JPG Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Dave Wood Sent: Saturday, August 23, 2003 9:37 AM To: canslim@lists.xmission.com Subject: [CANSLIM] MBT In Monday's IBD, They mention that MBT cleared its 7 week consolidation. I see a consolidation, but I can not see a pattern. The correction (63.25-50.56) is 20% which is more than the 15% flat base. If it is a CWH there are two clear problems:(1) volume during the consolidation and (2)only a 2 day handle. Am I missong something? Dave - ------=_NextPart_000_0061_01C36967.55F62AD0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><SPAN class=3D359170116-23082003>Hi Dave,</SPAN></DIV> <DIV><SPAN class=3D359170116-23082003></SPAN> </DIV> <DIV><SPAN class=3D359170116-23082003>The 7 week consolidation isn't = particularly=20 "ideal". As you noted, the base itself is a day shy, the handle is a bit = short,=20 the volume on the break above the pivot is on 108% ADV, the volume = pattern on=20 the right side of the cup is low. The guidelines that WON gives for = ideal bases=20 are just that, guidelines. They're primarily designed to help separate = the wheat=20 from the chaff when looking at a lot of charts and deciding on which = stock to=20 pursue. The truth is that while "ideal" bases tend to have lower risk, = breaks=20 from less than ideal bases can and do work. From a technical = perspective, a=20 stock such as MBT on its gap up above the recent consolidation shows = some=20 indication that it may be ready to move on. On another level, a short = base, a=20 break above the consolidation on a gap up and low volume after a very = good rise=20 may also be an indication that the run is over. I'd personally stay away = from=20 something like this because the signals are mixed.</SPAN></DIV> <DIV><SPAN class=3D359170116-23082003></SPAN> </DIV> <DIV><SPAN class=3D359170116-23082003>Weekly chart for = context:</SPAN></DIV> <DIV><SPAN class=3D359170116-23082003><A=20 href=3D"http://www.breakoutwatch.com/katherine/MBT082203Wkly.JPG">http://= www.breakoutwatch.com/katherine/MBT082203Wkly.JPG</A></SPAN></DIV> <DIV><SPAN class=3D359170116-23082003></SPAN> </DIV> <DIV><SPAN class=3D359170116-23082003>Daily chart with base=20 notations:</SPAN></DIV> <DIV><SPAN class=3D359170116-23082003><A=20 href=3D"http://www.breakoutwatch.com/katherine/MBT082203.JPG">http://www.= breakoutwatch.com/katherine/MBT082203.JPG</A></SPAN></DIV> <DIV><SPAN class=3D359170116-23082003></SPAN> </DIV> <DIV><SPAN class=3D359170116-23082003>Katherine</SPAN></DIV> <BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px"> <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Dave=20 Wood<BR><B>Sent:</B> Saturday, August 23, 2003 9:37 AM<BR><B>To:</B>=20 canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM]=20 MBT<BR><BR></FONT></DIV> <DIV><FONT face=3DArial size=3D2>In Monday's IBD, They mention that = MBT cleared=20 its 7 week consolidation. I see a consolidation, but I can not see a = pattern.=20 The correction (63.25-50.56) is 20% which is more than the 15% flat = base. If=20 it is a CWH there are two clear problems:(1) volume during the=20 consolidation and (2)only a 2 day handle. Am I missong=20 something?</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Dave</FONT></DIV> <DIV> </DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0061_01C36967.55F62AD0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): [CANSLIM] MBT "Dave Wood"
Top of Thread: [CANSLIM] MBT "Dave Wood"
Articles sorted by: [Date]
[Author]
[Subject]