Re: [CANSLIM] low volume breakouts

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] low volume breakouts
Date: Mon, 10 Dec 2001 10:41:23 -0600

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Hi jans,

The copy of my book is copyrighted 2000. I have found this to be one of my
most frequented references. But I'm a technical neophyte in comparison to my
fundamental, economic and business knowledgebase. I like that he takes a
very statistical look at each of the chart patterns. He explains why or why
not he may have included certain criteria, gives average rates of success
and failure, % advance or decline from each of the patterns, etc.

In the case of the C&H pattern, he is not looking at all CANSLIM criteria,
only the performance of an identified C&H technical pattern. He explains how
these are identified for the analysis. He notes in this chapter, for
example, that he was unable to include the stock's RS in his analysis,
because it was not clear from WON's description to what the RS was being
compared. That's why I have to add my own anecdotal evidence of this
technical pattern combined with underlying CANSLIM criteria for the given
candidates. I see these patterns fail most often when group RS or the
stock's RS is low or declining. This seems to override the current read on
the fundamentals.. Good examples of that are in early 2000. When stocks with
good fundamentals started failing, they often fell out of C&H patterns. That
makes sense, because the deterioration of the fundamentals is a lagging
indicator. On the other hand, when a company is going through a turnaround,
whether of iinternal or external origin, the turnaround in the fundamentals
need to precede the technical patterns to indicate a quality candidate. You
can see that currently in stocks like MCAF.

Katherine

- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Monday, December 10, 2001 9:54 AM
Subject: Re: [CANSLIM] low volume breakouts

> Katherine:
>
>      Thank you very much for your time and efforts in looking up this
> material.
>      However, would you tell me what you mean by "throwback"?  Also, when
was
> the book published, and-if it was published years ago-why do you think
> Bulkowski's statistical study on CANSLIM is still valid today?
>
> jans
>
>
> In a message dated 12/10/2001 7:16:48 AM Eastern Standard Time,
> kmalm@earthlink.net writes:
>
> << Waiting for the throwback increases the success rate another 1%. >>
>
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