Re: [CANSLIM] TUES

From: "Don Canfield" <canfieldd@mindspring.com>
Subject: Re: [CANSLIM] TUES
Date: Tue, 2 Sep 2003 14:13:52 -0400

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The chart action on TUES is one of my favorite types.   I've not been
watching the market much lately, and TUES is a favorite of mine and on my
list, but I missed this plum.

Here's what I like about this chart and how I would have handled it if I had
noticed it...

First BO on the 31st was nice after a long cwh, back to 5/02 (when I was
last stopped out of this stock).  I like the subsequent action of a quick
pullback after BO to support, then a launch into new higher ground.  This
trip higher is just what I like to see....  spurts followed by consolidating
rest spots, creating points of support along the path up.  There was a spurt
on 8/14, followed by one day rest.  Another on 8/20, followed by a slight
pullback -- even better support.  Finally, the low open and subsequent
run-up on 8/28 raised support a little higher.

If I had noticed this, I would like to think that I would have bought on
7/31 at about 28.50ish, and placed a stop just below support established the
day before at about 26.55.  That's 7% stoploss.  Then, on the continued
advance,  on about 8/14 I might have bought more (but the volume was iffy),
and place a stop at around 27, at more recent support. (I like to make
position in 2 or 3 smaller buys to lessen the risk in case the stock
immediately turns south and triggers it's stop on the initial 1/3rd.  Then I
make a couple of follow-up buys to place my full position.)   Then, the
stock continued to spurt up, make support.  Right now, I'd probably have my
stop at around 32.3 to secure a profit, and placed below support established
on 8/22.   If you wanted to carry it tighter, subsequent support was made on
the 28th...   The action today is interesting, but with a stop at 32.3, I'm
happy that I've ensured my profit.  This action might be a collapse and
major pullback triggering stops, but it may just be more healthy
consolidation creating a solid, higher point of support.  We'll know in a
few days.

Right now, if I were up 20% in this stock, I would not be wondering if I
whether I'd be stopped out at "breakeven".  There are too many good points
of support between break-even and where the stock is now.  I've have my stop
just below one of those points of support, guaranteeing a profitable trade.

As for WON's "20%" rule, this one is just too close to call to consider that
it has triggers the sell advice of that rule.  Set your stops and let the
market decide.  Don't worry this one to death.

Just my $.02.   I wish I had been on the ball and bought this puppy.  Too
bad for me, but wonderful for all of you who did.

Don


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