Go to Jeff Salisbury LWGate Home Page.From: "Dave Wood" <davewood@together.net>
Subject: Re: [CANSLIM] MBT
Date: Sat, 23 Aug 2003 12:35:57 -0400
Next Article (by Date): RE: [CANSLIM] When to Sit and Wait and when to Sell "Katherine Malm"
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Katherine,
Thank You.=20
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Saturday, August 23, 2003 12:11 PM
Subject: RE: [CANSLIM] MBT
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
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<DIV><FONT face=3DArial size=3D2>Katherine,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thank You. </FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, August 23, 2003 =
12:11=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
MBT</DIV>
<DIV><BR></DIV>
<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=20
particularly "ideal". As you noted, the base itself is a day shy, the =
handle=20
is a bit short, the volume on the break above the pivot is on 108% =
ADV, the=20
volume pattern on the right side of the cup is low. The guidelines =
that WON=20
gives for ideal bases are just that, guidelines. They're primarily =
designed to=20
help separate the wheat from the chaff when looking at a lot of charts =
and=20
deciding on which stock to pursue. The truth is that while "ideal" =
bases tend=20
to have lower risk, breaks from less than ideal bases can and do work. =
From a=20
technical perspective, a stock such as MBT on its gap up above the =
recent=20
consolidation shows some indication that it may be ready to move on. =
On=20
another level, a short base, a break above the consolidation on a gap =
up and=20
low volume after a very good rise may also be an indication that the =
run is=20
over. I'd personally stay away from something like this because the =
signals=20
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> =
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. The correction (63.25-50.56) is 20% which is more than the =
15% flat=20
base. If 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></BLOCKQUOTE></BODY></HTML>
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Next Article (by Date): RE: [CANSLIM] When to Sit and Wait and when to Sell "Katherine Malm"
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