Go to Jeff Salisbury LWGate Home Page.From: Chris Dempsey <cdempsey@houston.oilfield.slb.com>
Subject: RE: [CANSLIM] PECS & "Rubberband Sell Rule"
Date: Sun, 09 Dec 2001 23:49:56 -0600
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This is a multi-part message in MIME format. - --Boundary_(ID_S/7XPcrupeN/OBHD/YWlRw) Content-type: text/plain; charset=iso-8859-1 Content-transfer-encoding: 7BIT Katherine, Thanks for the idea. Sell rule 34 has always bothered me. "Some stocks can be sold when they are 70 to 100% above their 200-day. This in many instances seemed to soon. This looks like it will help determine which stocks. Have you done any analysis of you trades to determine the accuracy of this formula. What records do you keep when you buy and sell a stock? Chris -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Friday, December 07, 2001 9:42 AM To: CANSLIM List Posting Subject: [CANSLIM] PECS Just so you guys don't blame this one on the "IBD curse"... Here's a good example of the "Rubberband Sell Rule" in action: PECS B/O on 11/14. Rubberband Sell Rule: If all three of these criteria are met, be prepared to sell, as the price can fall 15-25%: (1) >125% above the recent base low AND (2) >70% above the 200 day MA AND (3) >25% above the 50 day MA. For PECS intraday 12/5/01 when P was $40.12: (1) recent base low $12.50, +221% (2) 200dMA $19.23, +108% (3) 50dMA $24.51, +64%. Based on that, on 12/5 price, your choices were: (1) Sell all or portion of position (2) Intend to buy back as it returns to intermediate term trend (3) Move on to another position 12/6 was a distribution day, the first in its advance. This morning an analyst downgraded to hold based on valuation, stock gapped down on open. So, depending on your choice, the next rule to kick in is the WON rule for stocks moving up >=20% within 8 weeks after breakout: If a stock does this, hold on through the first correction. If you make this choice, you then just have to watch that the IT trend is not violated as it makes its correction. If other sell rules kick in, out it goes. Katherine - --Boundary_(ID_S/7XPcrupeN/OBHD/YWlRw) Content-type: text/html; charset=iso-8859-1 Content-transfer-encoding: 7BIT <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=iso-8859-1"> <META content="MSHTML 5.50.4613.1700" name=GENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=#ffffff> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001>Katherine,</SPAN></FONT></DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001></SPAN></FONT> </DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001>Thanks for the idea. Sell rule 34 has always bothered me. "Some stocks can be sold when they are 70 to 100% above their 200-day. This in many instances seemed to soon. This looks like it will help determine which stocks. Have you done any analysis of you trades to determine the accuracy of this formula.</SPAN></FONT></DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001></SPAN></FONT> </DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001>What records do you keep when you buy and sell a stock?</SPAN></FONT></DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001></SPAN></FONT> </DIV> <DIV><FONT face=Arial color=#0000ff size=2><SPAN class=737562605-10122001>Chris</SPAN></FONT></DIV> <BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px"> <DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma size=2>-----Original Message-----<BR><B>From:</B> owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Katherine Malm<BR><B>Sent:</B> Friday, December 07, 2001 9:42 AM<BR><B>To:</B> CANSLIM List Posting<BR><B>Subject:</B> [CANSLIM] PECS<BR><BR></FONT></DIV> <DIV><FONT face=Arial size=2>Just so you guys don't blame this one on the "IBD curse"...</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>Here's a good example of the "Rubberband Sell Rule" in action:</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>PECS B/O on 11/14.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>Rubberband Sell Rule:</FONT></DIV> <DIV>If all three of these criteria are met, be prepared to sell, as the price<BR>can fall 15-25%:<BR>(1) >125% above the recent base low AND<BR>(2) >70% above the 200 day MA AND<BR>(3) >25% above the 50 day MA.<BR></DIV> <DIV><FONT face=Arial size=2>For PECS intraday 12/5/01 when P was $40.12:</FONT></DIV> <DIV><FONT face=Arial size=2>(1) recent base low $12.50, +221%</FONT></DIV> <DIV><FONT face=Arial size=2>(2) 200dMA $19.23, +108%</FONT></DIV> <DIV><FONT face=Arial size=2>(3) 50dMA $24.51, +64%.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>Based on that, on 12/5 price, your choices were: <DIV><FONT face=Arial size=2>(1) Sell all or portion of position</FONT></DIV> <DIV><FONT face=Arial size=2>(2) Intend to buy back as it returns to intermediate term trend</FONT></DIV> <DIV><FONT face=Arial size=2>(3) Move on to another position</FONT></DIV></FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>12/6 was a distribution day, the first in its advance.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>This morning an analyst downgraded to hold based on valuation, stock gapped down on open.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>So, depending on your choice, the next rule to kick in is the WON rule for stocks moving up >=20% within 8 weeks after breakout:</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>If a stock does this, hold on through the first correction.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>If you make this choice, you then just have to watch that the IT trend is not violated as it makes its correction.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>If other sell rules kick in, out it goes.</FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>Katherine</FONT></DIV></BLOCKQUOTE></BODY></HTML> - --Boundary_(ID_S/7XPcrupeN/OBHD/YWlRw)-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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