Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point

From: "Dave Squires" <dcsquires1@home.com>
Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point
Date: Fri, 21 Dec 2001 14:23:35 -0600

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IMO, the failed breakouts are a function of a market that is not quite there
yet. Sure we are in a buy market but it's highly unlikely we are in a new
bull market, at least on the NASDAQ. The NASDAQ has had the equivalent of a
heart attack so it will need lots of bed rest before it runs a marathon.
Eventually the market will setup hundreds of leadership stocks. Those stocks
will sail past there obvious pivot points and not look back for a second. As
the market usually does it will trick many traders. As soon as everyone
becomes accustom to selling 10% above the breakout, buying the breakout
whipsaw and running for the door at the first sign of weakness, leaders will
emerge that setup right, breakout right and advance triple digits. Growth
stocks will likely be out of favor and CNBC will have a constant drum beat
about the virtues of value investing. I can't wait!

As to Oliver Velez's comments I think this is (partly) where light volume
breakouts come from. The day traders push a stock through the pivot and some
IT traders buy but the institutions keep their wallets on their hips.

DSquires

- ----- Original Message -----
From: "Patrick Wahl" <pjwahl@attbi.com>
To: <canslim@lists.xmission.com>
Sent: Friday, December 21, 2001 12:13 PM
Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot
point

> I have been wondering for a while if the fact that these breakout points
have
> become so well known expains why there seems to be (seems is the key word,
I
> have no empirical evidence) so many failed breakouts.  I have gotten to
the point
> where I frequently wait for a breakout and then buy a pullback, rather
than trying to
> anticipate it, or get in at the breakout point.
>
> Regarding failed breakouts, I was reading a daytrading book (The Master
Day
> Trader, not to be confused with The Master Swing Trader), and found the
following
> passage interesting -
>
> "We teach our traders to be the creators of those market events that
others are
> waiting for. If the crowd is waiting for the stock to trade above 40
before they buy,
> then we say 'get the stock up to 40 1/8'.  In other words, make the chart.
... we
> thought it would be beneficial for you to know how the professionals are
playing the
> crowd.  The idea is to ignite the action of your desire by getting to the
crowd to take
> your lead.  It can't always be done, but our Master Traders pull it off
more often than
> some might think."
>
>
>
> On 21 Dec 2001 at 11:36, Dave Squires wrote:
>
> > the W. For an other "base" it's usually the spot where the major
resistance
> > is overcome. These are obvious points because WON, et al have taught
> > breakout buying for many years now and the 90's were a breakout traders
> > utopia.
>  >     Maybe it's not as hard as I make it out to be, but I have not had
>
>
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