SAY (was Re: [CANSLIM] Another Question: Beakouts ...)


From: "Tom Worley" <stkguru@netside.net>
Subject: SAY (was Re: [CANSLIM] Another Question: Beakouts ...)
Date: Mon, 10 Dec 2001 06:18:20 -0500

Previous Article (by Date): AW: [CANSLIM] Another Question: Beakouts ... Andreas Himmelreich
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Why did you buy it so extended, Andreas?

Tom Worley
stkguru@netside.net
AIM: TexWorley

  ----- Original Message -----=20
  From: Andreas Himmelreich=20
  To: 'canslim@lists.xmission.com'=20
  Sent: Monday, December 10, 2001 6:05 AM
  Subject: AW: [CANSLIM] Another Question: Beakouts ...


  Hi Tom,

  yes It is a typo, I bought it for 13.50 ...

  > -----Ursprungliche Nachricht-----
  > Von: Tom Worley [SMTP:stkguru@netside.net]
  > Gesendet am: Sunday, December 09, 2001 3:51 PM
  > An: canslim@lists.xmission.com
  > Betreff: Re: [CANSLIM] Another Question: Beakouts ...
  >
  > Hi Andreas,
  >
  > I will have to figure out why SAY never showed up on my lists, =
should=20
  have and didn't until you mention it. I presume your "15.50" is a =
typo, as=20
  it has yet to trade there?
  >
  > For TTIL, it's hard for me to think of buying it here, I picked it =
up for=20
  my VR fund a while ago, up now nearly 60%. I knew this company from =
some=20
  years ago, and expected this kind of results based on its fundies. =
Just=20
  another of my "non-CANSLIM" picks.
  >
  > Tom Worley
  > stkguru@netside.net
  > AIM: TexWorley
  >
  >   ----- Original Message -----
  >   From: Andreas Himmelreich
  >   To: 'canslim@lists.xmission.com'
  >   Sent: Sunday, December 09, 2001 9:41 AM
  >   Subject: AW: [CANSLIM] Another Question: Beakouts ...
  >
  >
  >   Thanx for the response !!!
  >
  >   This week I bought
  >
  >   ECTX (I figured if USTI breaks out, why should not ECTX, which has =
even=20
  >   better fundamentals) and AMWD (a lot of home builders broke out, =
so why=20
  not
  >   AMWD)
  >   before it broke out above the pivot). Also DFXI (fundamentally the =

  stock I
  >   love the most !!!)
  >
  >   I bought also SAY, but at 15.50, so an actually overextended =
CANSLIM=20
  trade,
  >   which should not be done, but I take the risk, because I think =
there is=20
  a
  >   good chance
  >   that the trend sustaines, I placed the stop, so I do not risk more =
then=20
  2%
  >   of my whole capital ...
  >
  >   I am also thinking about TTIL, which is also overextended, but has =
a=20
  nice
  >   Flag ...
  >
  >   See you
  >
  >   Andreas
  >
  >
  >   > -----Ursprungliche Nachricht-----
  >   > Von: Katherine Malm [SMTP:kmalm@earthlink.net]
  >   > Gesendet am: Sunday, December 09, 2001 2:25 PM
  >   > An: canslim@lists.xmission.com
  >   > Betreff: Re: [CANSLIM] Another Question: Beakouts ...
  >   >
  >   > Mornin' Norm,
  >   >
  >   > Sure seems to me the approach you are describing shows greater =
depth=20
  of
  >   understanding than many professionals have. None of the 4 options=20
  listed
  >   are worth a flip unless the candidate is superior and I think =
that's=20
  what
  >   people forget in their rush to fill the portfolio with positions. =
Your
  >   alternative, which I'll call "option 5" shows a different entry=20
  strategy
  >   supported by your own individual style. My own style is to move =
quickly=20
  out
  >   of something if it doesn't do what I'm expecting in the near term. =
But=20
  I
  >   continue to monitor the candidate in case it was a false start, =
then=20
  get
  >   right back in. That means that under some market conditions it =
might=20
  take
  >   me two entries, but my loss the first time is generally well under =
the=20
  7-8%
  >   rule, so I write that off as "risk control." As you have pointed =
out,
  >   everyone has their own risk tolerance and patience factor and =
finding a=20
  >   strategy that fits that personality makes all the difference in =
success=20
  >   rate.
  >   >
  >   > Katherine
  >   >
  >   >
  >   >
  >   > ----- Original Message -----
  >   >   From: Norman
  >   >   To: canslim@lists.xmission.com
  >   >   Sent: Sunday, December 09, 2001 7:54 AM
  >   >   Subject: Re: [CANSLIM] Another Question: Beakouts ...
  >   >
  >   >
  >   >   Hi Andreas,
  >   >
  >   >   I like, and have begun to use, Katherine's option number 3.  =
This=20
  is
  >   not a bad method if canslim criteria are met.  If there is good =
vol on=20
  the
  >   right side of the base (unless it's a flat base) then funds are =
buying,=20
  if
  >   the base and handle are correctly formed, if the company has=20
  outstanding
  >   fundamentals, if the GRS is good and trending up, if it's peers =
are=20
  doing
  >   well on the average, etc.  I know this is a lot to ask but this =
market=20
  has
  >   not been very forgiven for CANSLIMers lately.  And often the stock =
will=20
  not
  >   break out for days or weeks or not at all.  But you will have the =
odds=20
  on
  >   your side; a good company, with big money support and a good =
chart.=20
   The
  >   only real problems I have noted are 1) that I have to sit around =
and=20
  watch
  >   other stocks on my list shoot up (unavoidable), and 2) if the =
handle is=20
  >   10-15% off the pivot then there has to be a substantial move just =
to=20
  get to
  >   my buy order; this increases the likely hood of a second handle or =
that=20
  my
  >   order will execute and the price will close below that point.  I =
am=20
  willing
  >   to live with these risks if the company is top notch.  I don't see =
the=20
  low
  >   vol breakout as much of a risk; at least I would be making money.  =
If=20
  the
  >   company, chart and GRS are good then I would hold the low vol BO =
with a=20
  >   shallow s/l order in place.  I guess then I would be an =
"aggressive=20
  value
  >   investor".  Additionally, this may be the only way to buy the flat =
base=20
  or
  >   LLUR; they seem to often shoot up out of their pattern quickly.
  >   >
  >   >   disclaimer: I'm an amateur with much less experience than most =
:-)
  >   >
  >   >   Norm
  >   >
  >   >   ----- Original Message -----
  >   >   From: "Katherine Malm" <kmalm@earthlink.net>
  >   >   To: <canslim@lists.xmission.com>
  >   >   Sent: Saturday, December 08, 2001 11:44 PM
  >   >   Subject: Re: [CANSLIM] Another Question: Beakouts ...
  >   >
  >   >
  >   >   > Hi Andreas,
  >   >   >
  >   >   > > And then you wait all day until they breakout? So Canslim =
can=20
  only
  >   be done
  >   >   > by people who
  >   >   > > do this full time?
  >   >   > > Even a Stop buy does not work because you do not know if =
the=20
  volume
  >   is at
  >   >   > least 50% higher then
  >   >   > > average.
  >   >   >
  >   >   > Option 1: If you are trading full time, but don't want to =
sit at=20
  the
  >   >   > computer all day and watch the quote screen, use trading =
software=20
  >   that
  >   >   > allows you to set audible alarms when the stock on your =
wishlist
  >   meets
  >   >   > certain price and/or volume criteria. I do this with =
Schwab's
  >   Streetsmart
  >   >   > Pro. At the beginning of each trading day, I update my =
alarms=20
  based
  >   on my
  >   >   > strategy for the day. If the alarms go off, I look at the =
screen.=20
  If
  >   they
  >   >   > don't, I don't have to watch at all.
  >   >   >
  >   >   > Option 2: Use a service that sends these alarms to your =
pager or
  >   digital
  >   >   > phone. Many brokerages offer this option. If your employer =
has no=20
  >   problem
  >   >   > with you placing trades during your work day, this works =
well.=20
  Ext
  >   rapolating
  >   >   > volume intraday will give a feel as to breakout potential.
  >   >   >
  >   >   > Option 3: If you are working at a job other than trading and =
do=20
  not
  >   or
  >   >   > cannot trade during market hours, using a buy-stop-limit is =
the=20
  only
  >   way to
  >   >   > make entries at the time of the first breakout attempt.
  >   Unfortunately, these
  >   >   > are not volume dependent, as you noted. If you are convinced =
that=20
  >   this is a
  >   >   > stock worth owning, you set up the trade and see what =
happens. If=20
  you
  >   can
  >   >   > check volume at lunchtime, that may help you assess whether =
or=20
  not to
  >   cancel
  >   >   > the order if it has not yet executed. If the buy was =
executed=20
  during
  >   the day
  >   >   > but on your end-of-day review you see that the appropriate=20
  minimum
  >   volume
  >   >   > was not met, sell it the next day. Plain and simple. Cost of =

  doing
  >   business.
  >   >   > While a stock breaking out on below average volume may not
  >   necessarily fail,
  >   >   > the *probability* of failure is higher. That's reason enough =
to=20
  exit
  >   the
  >   >   > trade.
  >   >   >
  >   >   > Option 4: If the stock broke out but finished the day within =
5%=20
  of
  >   the
  >   >   > pivot, place a limit order for the open. If you get it, =
fine. If=20
  you
  >   don't,
  >   >   > well there's 9,999 other stocks in the universe.
  >   >   >
  >   >   > Katherine
  >   >   >
  >   >   >
  >   >   >
  >   >   >
  >   >   > ----- Original Message -----
  >   >   > From: "Andreas Himmelreich" <judgejimmy@web.de>
  >   >   > To: <canslim@lists.xmission.com>
  >   >   > Sent: Saturday, December 08, 2001 9:55 PM
  >   >   > Subject: [CANSLIM] Another Question: Beakouts ...
  >   >   >
  >   >   >
  >   >   > > How do you spot breakouts?
  >   >   > >
  >   >   > > OK, I have a watchlist on stocks that are fundamentally =
and
  >   technically
  >   >   > interesting.
  >   >   > > And then you wait all day until they breakout? So Canslim =
can=20
  only
  >   be done
  >   >   > by people who
  >   >   > > do this full time?
  >   >   > >
  >   >   > > Even a Stop buy does not work because you do not know if =
the
  >   volumne is at
  >   >   > least 50% higher then
  >   >   > > average.
  >   >   > >
  >   >   > > Alternative is to buy on the second day of the breakout, =
but=20
  this
  >   should
  >   >   > only be done if
  >   >   > > the price is not higher then 10% above the pivot? A lot of
  >   breakouts do
  >   >   > 10% and more on the
  >   >   > > breakout day.
  >   >   > >
  >   >   > > So how do you do this?
  >   >   >
  >   >   >
  >   >   > -
  >   >   > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  >   >   > -In the email body, write "subscribe canslim" or
  >   >   > -"unsubscribe canslim".  Do not use quotes in your email.
  >   >   >
  >   >   >
  >   >  << Datei: ATT00013.htm >>
  >
  >   -
  >   -To subscribe/unsubscribe, email "majordomo@xmission.com"
  >   -In the email body, write "subscribe canslim" or
  >   -"unsubscribe canslim".  Do not use quotes in your email.
  >
  >  << Datei: ATT00000.htm >>=20

  -
  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.


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<DIV><FONT size=3D2>Why did you buy it so extended, =
Andreas?</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-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 href=3D"mailto:judgejimmy@web.de" title=3Djudgejimmy@web.de>Andreas =

  Himmelreich</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
  href=3D"mailto:'canslim@lists.xmission.com'"=20
  title=3Dcanslim@lists.xmission.com>'canslim@lists.xmission.com'</A> =
</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, December 10, 2001 =
6:05=20
  AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> AW: [CANSLIM] Another =
Question:=20
  Beakouts ...</DIV>
  <DIV><BR></DIV>Hi Tom,<BR><BR>yes It is a typo, I bought it for 13.50=20
  ...<BR><BR>&gt; -----Ursprungliche Nachricht-----<BR>&gt; Von: Tom =
Worley [<A=20
  =
href=3D"mailto:SMTP:stkguru@netside.net">SMTP:stkguru@netside.net</A>]<BR=
>&gt;=20
  Gesendet am: Sunday, December 09, 2001 3:51 PM<BR>&gt; An: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;=20
  Betreff: Re: [CANSLIM] Another Question: Beakouts ...<BR>&gt;<BR>&gt; =
Hi=20
  Andreas,<BR>&gt;<BR>&gt; I will have to figure out why SAY never =
showed up on=20
  my lists, should <BR>have and didn't until you mention it. I presume =
your=20
  "15.50" is a typo, as <BR>it has yet to trade there?<BR>&gt;<BR>&gt; =
For TTIL,=20
  it's hard for me to think of buying it here, I picked it up for <BR>my =
VR fund=20
  a while ago, up now nearly 60%. I knew this company from some =
<BR>years ago,=20
  and expected this kind of results based on its fundies. Just =
<BR>another of my=20
  "non-CANSLIM" picks.<BR>&gt;<BR>&gt; Tom Worley<BR>&gt; <A=20
  href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>&gt; =
AIM:=20
  TexWorley<BR>&gt;<BR>&gt;&nbsp;&nbsp; ----- Original Message=20
  -----<BR>&gt;&nbsp;&nbsp; From: Andreas =
Himmelreich<BR>&gt;&nbsp;&nbsp; To: <A=20
  =
href=3D"mailto:'canslim@lists.xmission.com'">'canslim@lists.xmission.com'=
</A><BR>&gt;&nbsp;&nbsp;=20
  Sent: Sunday, December 09, 2001 9:41 AM<BR>&gt;&nbsp;&nbsp; Subject: =
AW:=20
  [CANSLIM] Another Question: Beakouts =
...<BR>&gt;<BR>&gt;<BR>&gt;&nbsp;&nbsp;=20
  Thanx for the response !!!<BR>&gt;<BR>&gt;&nbsp;&nbsp; This week I=20
  bought<BR>&gt;<BR>&gt;&nbsp;&nbsp; ECTX (I figured if USTI breaks out, =
why=20
  should not ECTX, which has even <BR>&gt;&nbsp;&nbsp; better =
fundamentals) and=20
  AMWD (a lot of home builders broke out, so why =
<BR>not<BR>&gt;&nbsp;&nbsp;=20
  AMWD)<BR>&gt;&nbsp;&nbsp; before it broke out above the pivot). Also =
DFXI=20
  (fundamentally the <BR>stock I<BR>&gt;&nbsp;&nbsp; love the most=20
  !!!)<BR>&gt;<BR>&gt;&nbsp;&nbsp; I bought also SAY, but at 15.50, so =
an=20
  actually overextended CANSLIM <BR>trade,<BR>&gt;&nbsp;&nbsp; which =
should not=20
  be done, but I take the risk, because I think there is=20
  <BR>a<BR>&gt;&nbsp;&nbsp; good chance<BR>&gt;&nbsp;&nbsp; that the =
trend=20
  sustaines, I placed the stop, so I do not risk more then=20
  <BR>2%<BR>&gt;&nbsp;&nbsp; of my whole capital =
...<BR>&gt;<BR>&gt;&nbsp;&nbsp;=20
  I am also thinking about TTIL, which is also overextended, but has a=20
  <BR>nice<BR>&gt;&nbsp;&nbsp; Flag ...<BR>&gt;<BR>&gt;&nbsp;&nbsp; See=20
  you<BR>&gt;<BR>&gt;&nbsp;&nbsp; =
Andreas<BR>&gt;<BR>&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt; -----Ursprungliche Nachricht-----<BR>&gt;&nbsp;&nbsp; &gt; Von: =
Katherine=20
  Malm [<A=20
  =
href=3D"mailto:SMTP:kmalm@earthlink.net">SMTP:kmalm@earthlink.net</A>]<BR=
>&gt;&nbsp;&nbsp;=20
  &gt; Gesendet am: Sunday, December 09, 2001 2:25 =
PM<BR>&gt;&nbsp;&nbsp; &gt;=20
  An: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;&nbsp;&nbsp;=20
  &gt; Betreff: Re: [CANSLIM] Another Question: Beakouts =
...<BR>&gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt; Mornin' Norm,<BR>&gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt; Sure seems to me the approach you are =
describing=20
  shows greater depth <BR>of<BR>&gt;&nbsp;&nbsp; understanding than many =

  professionals have. None of the 4 options =
<BR>listed<BR>&gt;&nbsp;&nbsp; are=20
  worth a flip unless the candidate is superior and I think that's=20
  <BR>what<BR>&gt;&nbsp;&nbsp; people forget in their rush to fill the =
portfolio=20
  with positions. Your<BR>&gt;&nbsp;&nbsp; alternative, which I'll call =
"option=20
  5" shows a different entry <BR>strategy<BR>&gt;&nbsp;&nbsp; supported =
by your=20
  own individual style. My own style is to move quickly=20
  <BR>out<BR>&gt;&nbsp;&nbsp; of something if it doesn't do what I'm =
expecting=20
  in the near term. But <BR>I<BR>&gt;&nbsp;&nbsp; continue to monitor =
the=20
  candidate in case it was a false start, then =
<BR>get<BR>&gt;&nbsp;&nbsp; right=20
  back in. That means that under some market conditions it might=20
  <BR>take<BR>&gt;&nbsp;&nbsp; me two entries, but my loss the first =
time is=20
  generally well under the <BR>7-8%<BR>&gt;&nbsp;&nbsp; rule, so I write =
that=20
  off as "risk control." As you have pointed out,<BR>&gt;&nbsp;&nbsp; =
everyone=20
  has their own risk tolerance and patience factor and finding a=20
  <BR>&gt;&nbsp;&nbsp; strategy that fits that personality makes all the =

  difference in success <BR>&gt;&nbsp;&nbsp; rate.<BR>&gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt; Katherine<BR>&gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt; ----- Original Message -----<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; =
From:=20
  Norman<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; Sent: Sunday, December 09, 2001 7:54 =
AM<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; Subject: Re: [CANSLIM] Another Question: Beakouts=20
  ...<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; Hi Andreas,<BR>&gt;&nbsp;&nbsp; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; I like, and have begun to use, Katherine's option =
number=20
  3.&nbsp; This <BR>is<BR>&gt;&nbsp;&nbsp; not a bad method if canslim =
criteria=20
  are met.&nbsp; If there is good vol on <BR>the<BR>&gt;&nbsp;&nbsp; =
right side=20
  of the base (unless it's a flat base) then funds are buying,=20
  <BR>if<BR>&gt;&nbsp;&nbsp; the base and handle are correctly formed, =
if the=20
  company has <BR>outstanding<BR>&gt;&nbsp;&nbsp; fundamentals, if the =
GRS is=20
  good and trending up, if it's peers are <BR>doing<BR>&gt;&nbsp;&nbsp; =
well on=20
  the average, etc.&nbsp; I know this is a lot to ask but this market=20
  <BR>has<BR>&gt;&nbsp;&nbsp; not been very forgiven for CANSLIMers=20
  lately.&nbsp; And often the stock will <BR>not<BR>&gt;&nbsp;&nbsp; =
break out=20
  for days or weeks or not at all.&nbsp; But you will have the odds=20
  <BR>on<BR>&gt;&nbsp;&nbsp; your side; a good company, with big money =
support=20
  and a good chart. <BR>&nbsp;The<BR>&gt;&nbsp;&nbsp; only real problems =
I have=20
  noted are 1) that I have to sit around and =
<BR>watch<BR>&gt;&nbsp;&nbsp; other=20
  stocks on my list shoot up (unavoidable), and 2) if the handle is=20
  <BR>&gt;&nbsp;&nbsp; 10-15% off the pivot then there has to be a =
substantial=20
  move just to <BR>get to<BR>&gt;&nbsp;&nbsp; my buy order; this =
increases the=20
  likely hood of a second handle or that <BR>my<BR>&gt;&nbsp;&nbsp; =
order will=20
  execute and the price will close below that point.&nbsp; I am=20
  <BR>willing<BR>&gt;&nbsp;&nbsp; to live with these risks if the =
company is top=20
  notch.&nbsp; I don't see the <BR>low<BR>&gt;&nbsp;&nbsp; vol breakout =
as much=20
  of a risk; at least I would be making money.&nbsp; If=20
  <BR>the<BR>&gt;&nbsp;&nbsp; company, chart and GRS are good then I =
would hold=20
  the low vol BO with a <BR>&gt;&nbsp;&nbsp; shallow s/l order in =
place.&nbsp; I=20
  guess then I would be an "aggressive <BR>value<BR>&gt;&nbsp;&nbsp;=20
  investor".&nbsp; Additionally, this may be the only way to buy the =
flat base=20
  <BR>or<BR>&gt;&nbsp;&nbsp; LLUR; they seem to often shoot up out of =
their=20
  pattern quickly.<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp;=20
  disclaimer: I'm an amateur with much less experience than most=20
  :-)<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  Norm<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; =
- -----=20
  Original Message -----<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; From: =
"Katherine=20
  Malm" &lt;<A=20
  =
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>&gt;<BR>&gt;&n=
bsp;&nbsp;=20
  &gt;&nbsp;&nbsp; To: &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; Sent: Saturday, December 08, 2001 11:44=20
  PM<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; Subject: Re: [CANSLIM] Another =

  Question: Beakouts ...<BR>&gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; Hi =
Andreas,<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; =
And then=20
  you wait all day until they breakout? So Canslim can=20
  <BR>only<BR>&gt;&nbsp;&nbsp; be done<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp; &gt;=20
  by people who<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; do this =
full=20
  time?<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; Even a Stop buy =
does not=20
  work because you do not know if the <BR>volume<BR>&gt;&nbsp;&nbsp; is=20
  at<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; least 50% higher=20
  then<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt;=20
  average.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; =

  &gt;&nbsp;&nbsp; &gt; Option 1: If you are trading full time, but =
don't want=20
  to sit at <BR>the<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; computer =
all day=20
  and watch the quote screen, use trading software <BR>&gt;&nbsp;&nbsp;=20
  that<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; allows you to set =
audible=20
  alarms when the stock on your wishlist<BR>&gt;&nbsp;&nbsp;=20
  meets<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; certain price and/or =
volume=20
  criteria. I do this with Schwab's<BR>&gt;&nbsp;&nbsp;=20
  Streetsmart<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; Pro. At the =
beginning of=20
  each trading day, I update my alarms <BR>based<BR>&gt;&nbsp;&nbsp; on=20
  my<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; strategy for the day. If =
the=20
  alarms go off, I look at the screen. <BR>If<BR>&gt;&nbsp;&nbsp;=20
  they<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; don't, I don't have to =
watch at=20
  all.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; Option 2: Use a service that sends these alarms =
to your=20
  pager or<BR>&gt;&nbsp;&nbsp; digital<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp; &gt;=20
  phone. Many brokerages offer this option. If your employer has no=20
  <BR>&gt;&nbsp;&nbsp; problem<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
with=20
  you placing trades during your work day, this works well.=20
  <BR>Ext<BR>&gt;&nbsp;&nbsp; rapolating<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp;=20
  &gt; volume intraday will give a feel as to breakout=20
  potential.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; Option 3: If you are working at a job other than =
trading=20
  and do <BR>not<BR>&gt;&nbsp;&nbsp; or<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp;=20
  &gt; cannot trade during market hours, using a buy-stop-limit is the=20
  <BR>only<BR>&gt;&nbsp;&nbsp; way to<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp; &gt;=20
  make entries at the time of the first breakout =
attempt.<BR>&gt;&nbsp;&nbsp;=20
  Unfortunately, these<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; are not =
volume=20
  dependent, as you noted. If you are convinced that =
<BR>&gt;&nbsp;&nbsp; this=20
  is a<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; stock worth owning, you =
set up=20
  the trade and see what happens. If <BR>you<BR>&gt;&nbsp;&nbsp;=20
  can<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; check volume at =
lunchtime, that=20
  may help you assess whether or <BR>not to<BR>&gt;&nbsp;&nbsp;=20
  cancel<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; the order if it has =
not yet=20
  executed. If the buy was executed <BR>during<BR>&gt;&nbsp;&nbsp; the=20
  day<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; but on your end-of-day =
review=20
  you see that the appropriate <BR>minimum<BR>&gt;&nbsp;&nbsp;=20
  volume<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; was not met, sell it =
the next=20
  day. Plain and simple. Cost of <BR>doing<BR>&gt;&nbsp;&nbsp;=20
  business.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; While a stock =
breaking out=20
  on below average volume may not<BR>&gt;&nbsp;&nbsp; necessarily=20
  fail,<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; the *probability* of =
failure=20
  is higher. That's reason enough to <BR>exit<BR>&gt;&nbsp;&nbsp;=20
  the<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
trade.<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; Option =
4: If=20
  the stock broke out but finished the day within 5% =
<BR>of<BR>&gt;&nbsp;&nbsp;=20
  the<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; pivot, place a limit =
order for=20
  the open. If you get it, fine. If <BR>you<BR>&gt;&nbsp;&nbsp;=20
  don't,<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; well there's 9,999 =
other=20
  stocks in the universe.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
Katherine<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; ----- =
Original=20
  Message -----<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; From: "Andreas =

  Himmelreich" &lt;<A=20
  =
href=3D"mailto:judgejimmy@web.de">judgejimmy@web.de</A>&gt;<BR>&gt;&nbsp;=
&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; To: &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; Sent: Saturday, December 08, 2001 9:55=20
  PM<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; Subject: [CANSLIM] =
Another=20
  Question: Beakouts ...<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; &gt; How do you spot =
breakouts?<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
&gt; OK,=20
  I have a watchlist on stocks that are fundamentally =
and<BR>&gt;&nbsp;&nbsp;=20
  technically<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;=20
  interesting.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; And then =
you wait=20
  all day until they breakout? So Canslim can =
<BR>only<BR>&gt;&nbsp;&nbsp; be=20
  done<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; by people=20
  who<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; do this full=20
  time?<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; &gt; Even a Stop buy does not work because you =
do not=20
  know if the<BR>&gt;&nbsp;&nbsp; volumne is at<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; least 50% higher then<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; &gt; average.<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;&nbsp; &gt;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; Alternative is to =
buy on=20
  the second day of the breakout, but <BR>this<BR>&gt;&nbsp;&nbsp;=20
  should<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; only be done=20
  if<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; the price is not =
higher then=20
  10% above the pivot? A lot of<BR>&gt;&nbsp;&nbsp; breakouts=20
  do<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; 10% and more on=20
  the<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; &gt; breakout=20
  day.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; =
&gt;<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; &gt; So how do you do this?<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; -<BR>&gt;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; -To subscribe/unsubscribe, email "<A=20
  =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>&gt=
;&nbsp;&nbsp;=20
  &gt;&nbsp;&nbsp; &gt; -In the email body, write "subscribe canslim"=20
  or<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt; -"unsubscribe =
canslim".&nbsp; Do=20
  not use quotes in your email.<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp;=20
  &gt;<BR>&gt;&nbsp;&nbsp; &gt;&nbsp;&nbsp; &gt;<BR>&gt;&nbsp;&nbsp; =
&gt;&nbsp;=20
  &lt;&lt; Datei: ATT00013.htm &gt;&gt;<BR>&gt;<BR>&gt;&nbsp;&nbsp;=20
  -<BR>&gt;&nbsp;&nbsp; -To subscribe/unsubscribe, email "<A=20
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  -In the email body, write "subscribe canslim" or<BR>&gt;&nbsp;&nbsp;=20
  -"unsubscribe canslim".&nbsp; Do not use quotes in your=20
  email.<BR>&gt;<BR>&gt;&nbsp; &lt;&lt; Datei: ATT00000.htm &gt;&gt;=20
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