Re: [CANSLIM] Industry analysis technique/tools? Was: Point of View: Why bother with fundamentals?

From: "Jerry Sparrow" <sparrowj@netpath.net>
Subject: Re: [CANSLIM] Industry analysis technique/tools? Was: Point of View: Why bother with fundamentals?
Date: Thu, 20 Dec 2001 14:55:03 -0500

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I am in the procees of reworking an excel file that Norman had started
showing Industry Groups.  I am going back to use ratings from the Tuesday
edition of the paper as it appears that this may be best.  The workbook also
includes a graph for each industry.  I plan on updating the sheet every
Tuesday night to graphically show which industries are moving up.  I have
compiled information back to August, just haven't got it all typed in.
Maybe I'll get time over the break to finish.
- ----- Original Message -----
From: "Warren Keuffel" <wkeuffel@xmission.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, December 20, 2001 1:15 PM
Subject: Re: [CANSLIM] Industry analysis technique/tools? Was: Point of
View: Why bother with fundamentals?


> Katharine,
>
> I gather that when you see an interesting stock you then examine the
> industry to see if the other players are coming along also (as described
> below).  My question to you is, do you do any kind of industry analysis
> where you find promising industries and then look for candidate stocks
> within that industry?  I would call this a bottom-up approach.
>
> The primary reason I raise this question is that I am trying to figure
> out how best to use the daily IBD industry ranking table.  I know there
> are a few WON comments on investors.com about this, but the big question
> for me is whether it would be worthwhile for me to invest time and
> energy into tracking the daily or weekly movement of those 197 groups to
> see patterns (if any) developing.  This would be what I would call a
> top-down approach.
>
> Thanks,
> Warren
>
> Katherine Malm wrote:
>
> > Hi John, >>The last paragraph seems indicate you do use fundamentals
> > and sector rotation for your screening. Then youuse total technical
> > analysis from that point including exits. Correct?<< That is for the
> > most part correct, though industry analysis (sector rotation) enters
> > in both screening and in buy/sell decisions. I look for something with
> > a fundamental story and if I like it, I watch it until the industry
> > and technical analysis stars align. As part of my buy review process,
> > I look at the action in all players in the industry. This will help
> > ensure that the industry is not topping out, even though the buy
> > candidate looks technically sound. I also look at industry players to
> > be sure that moves off the bottom show that at least 2 strong stocks
> > are moving. One alone, and I wait. Once I own a stock, part of my sell
> > rules include continued review of other stocks in the industry. If
> > they begin breaking down, but my holding is strong, it goes on
> > warning. If other technical warning signs kick in, out it goes. My
> > entries and exits are definitely driven by technicals. There are
> > times, however, where fundamentals do play a hand in my sell rules:
>
>
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