Re: [CANSLIM]"Rubberband Sell Rule"

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM]"Rubberband Sell Rule"
Date: Wed, 12 Dec 2001 00:41:58 -0500
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Ahhh, the light bulb just clicked on in the old gray matter. I didn't =
look back far enough to see the c&h (cup and handle) base formation, and =
use that for the base low price.

Tom Worley
stkguru@netside.net
AIM: TexWorley

  ----- Original Message -----=20
  From: Katherine Malm=20
  To: canslim@lists.xmission.com=20
  Sent: Tuesday, December 11, 2001 11:11 PM
  Subject: Re: [CANSLIM]"Rubberband Sell Rule"


  Tom,
  =20
  I always use a valid base to do the measure. The only recent valid =
base is a cup from $20.05 on 8/30 to a low of $8.49 9/21 to a B/O on =
11/6 at 2x ADV.
  =20
  That means at today's close price of $27.50, we have
  =20
  224% above BL $8.49 and
  32% above 50dMA $20.88 and
  77% above 200dMA $15.58
  =20
  Possible sell triggered.
  =20
  Katherine
    ----- Original Message -----=20
    From: Tom Worley=20
    To: canslim@lists.xmission.com=20
    Sent: Tuesday, December 11, 2001 11:13 PM
    Subject: Re: [CANSLIM]"Rubberband Sell Rule"


    Bill and Katherine,

    Where do you peg the "recent base low"?? If you use the short base =
just under 20, then it's up about 140% depending on the exact price you =
use. On the other hand, if you use the more recent and longer =
consolidation it did around / over $25 (now in its 5th week), then this =
criteria is not satisfied, and the test fails on this count.

    P.S. Shhsssshhh, if IBD thinks we have too much knowledge here, then =
they're liable to give out the address, and we will be swamped with =
newbies. Another form of the IBD curse!!  Not that I don't welcome =
newcomers here, in fact they typically bring in fresh perspective, =
ideas, and challenges to the stodgy thinking of members like me (once we =
get them over their shyness about posting). Just gotta take them in =
moderation, not volume.

    Tom Worley
    stkguru@netside.net
    AIM: TexWorley

      ----- Original Message -----=20
      From: Bill Triffet=20
      To: canslim@lists.xmission.com=20
      Sent: Wednesday, December 12, 2001 12:01 AM
      Subject: Re: [CANSLIM]"Rubberband Sell Rule"


      Katherine,

      Really enjoy your posts. You and Tom ought to write a book =
together! : ) I'm
      amazed at the wealth of information I've seen here in the past few =
weeks.
      Really great stuff.

      Looks like ALLY has just made the "rubber band" criteria. Will be =
a good
      eductional study to follow its actions.

      -Bill Triffet

      ----- Original Message -----
      From: "Katherine Malm" <kmalm@earthlink.net>
      To: <canslim@lists.xmission.com>
      Sent: Tuesday, December 11, 2001 6:50 PM
      Subject: Re: [CANSLIM]"Rubberband Sell Rule"


      Hi John,

      The original discussion of this came up on the AZO thread, then =
again on
      "PECS & the Rubberband sell rule" if you want to get more of the =
discussion.

      But the criteria for the rule is:

      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.

      This is an enhancement to WON's "may want to sell if the stock is =
70%+ above
      the 200 day MA." It's really just about quantifying the degree of =
extension
      from its base and moving averages and the likelihood that short =
term players
      will be taking profits.

      Hope that helps!

      Katherine




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<BODY bgColor=3D#ffffff>
<DIV><FONT size=3D2>Ahhh, the light bulb just clicked on in the old gray =
matter. I=20
didn't look back far enough to see the c&amp;h (cup and handle) base =
formation,=20
and use that for the base low price.</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 dir=3Dltr=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:kmalm@earthlink.net" =
title=3Dkmalm@earthlink.net>Katherine=20
  Malm</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> Tuesday, December 11, =
2001 11:11=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: =
[CANSLIM]"Rubberband Sell=20
  Rule"</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial size=3D2>Tom,</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>I always use a valid base to do the =
measure. The=20
  only recent valid base is a cup from $20.05 on 8/30 to a low of $8.49 =
9/21 to=20
  a B/O on 11/6 at 2x ADV.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>That means at today's close price of =
$27.50, we=20
  have</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>224% above BL $8.49 and</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>32% above 50dMA $20.88 =
and</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>77% above 200dMA $15.58</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Possible sell triggered.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
  <BLOCKQUOTE dir=3Dltr=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:stkguru@netside.net" =
title=3Dstkguru@netside.net>Tom=20
    Worley</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> Tuesday, December 11, =
2001 11:13=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: =
[CANSLIM]"Rubberband Sell=20
    Rule"</DIV>
    <DIV><BR></DIV>
    <DIV><FONT size=3D2>Bill and Katherine,</FONT></DIV>
    <DIV>&nbsp;</DIV>
    <DIV><FONT size=3D2>Where do you peg the "recent base low"?? If you =
use the=20
    short base just under 20, then it's up about 140% depending on the =
exact=20
    price you use. On the other hand, if you use the more recent and =
longer=20
    consolidation it did around / over $25 (now in its 5th week), then =
this=20
    criteria is not satisfied, and the test fails on this =
count.</FONT></DIV>
    <DIV>&nbsp;</DIV>
    <DIV><FONT size=3D2>P.S. Shhsssshhh, if IBD thinks we have too much =
knowledge=20
    here, then they're liable to give out the address, and we will be =
swamped=20
    with newbies. Another form of the IBD curse!!&nbsp; Not that I don't =
welcome=20
    newcomers here, in fact they typically bring in fresh perspective, =
ideas,=20
    and challenges to the stodgy thinking of members like me (once we =
get them=20
    over their shyness about posting). Just gotta take them in =
moderation, not=20
    volume.</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:btriffet@earthlink.net" =
title=3Dbtriffet@earthlink.net>Bill=20
      Triffet</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> Wednesday, December =
12, 2001=20
      12:01 AM</DIV>
      <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: =
[CANSLIM]"Rubberband=20
      Sell Rule"</DIV>
      <DIV><BR></DIV>Katherine,<BR><BR>Really enjoy your posts. You and =
Tom=20
      ought to write a book together! : ) I'm<BR>amazed at the wealth of =

      information I've seen here in the past few weeks.<BR>Really great=20
      stuff.<BR><BR>Looks like ALLY has just made the "rubber band" =
criteria.=20
      Will be a good<BR>eductional study to follow its =
actions.<BR><BR>-Bill=20
      Triffet<BR><BR>----- Original Message -----<BR>From: "Katherine =
Malm"=20
      &lt;<A=20
      =
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>&gt;<BR>To:=20
      &lt;<A=20
      =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>Sent:=20
      Tuesday, December 11, 2001 6:50 PM<BR>Subject: Re: =
[CANSLIM]"Rubberband=20
      Sell Rule"<BR><BR><BR>Hi John,<BR><BR>The original discussion of =
this came=20
      up on the AZO thread, then again on<BR>"PECS &amp; the Rubberband =
sell=20
      rule" if you want to get more of the discussion.<BR><BR>But the =
criteria=20
      for the rule is:<BR><BR>If all three of these criteria are met, be =

      prepared to sell, as the price<BR>can fall 15-25%:<BR>(1) &gt;125% =
above=20
      the recent base low AND<BR>(2) &gt;70% above the 200 day MA =
AND<BR>(3)=20
      &gt;25% above the 50 day MA.<BR><BR>This is an enhancement to =
WON's "may=20
      want to sell if the stock is 70%+ above<BR>the 200 day MA." It's =
really=20
      just about quantifying the degree of extension<BR>from its base =
and moving=20
      averages and the likelihood that short term players<BR>will be =
taking=20
      profits.<BR><BR>Hope that=20
      helps!<BR><BR>Katherine<BR><BR><BR><BR><BR>-<BR>-To =
subscribe/unsubscribe,=20
      email "<A=20
      =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
      the email body, write "subscribe canslim" or<BR>-"unsubscribe=20
      canslim".&nbsp; Do not use quotes in your=20
email.<BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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