Re: [CANSLIM] Bulkowski re: patterns besides C&H

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H
Date: Tue, 8 Jan 2002 21:45:10 -0500
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Warren,

I am just getting started on reading tonight's emails, so may be repeating
something others have already posted.

CANSLIM was around and a developed concept long before IBD (originally just
Investor's Daily) was even a twinkle in Uncle Bill's eye. CANSLIM does not
depend on IBD, nor does IBD depend on CANSLIM, but they do both complement
each other, and share some common data bases and systems.

As to your basic question, should we have more arrows in our quiver than cup
& handle? Yes, absolutely, of course. This group and it's members focus far
too much on just finding that single pattern on the charts. WON says it's
the strongest, and I accept that. But I rarely buy off a c&h pattern,
focusing instead on finding the many flat bases where stocks are on the edge
of hitting new highs. I did that throughout the long decline of the past two
years, and made good money in 2001 for the entire year.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Warren Keuffel" <wkeuffel@xmission.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, January 08, 2002 2:25 PM
Subject: Re: [CANSLIM] Bulkowski re: patterns besides C&H


> Katherine,
>
> I am not an experienced or particularly successful CANSLIM investor, but
> am learning fast -- particularly due to this great list.  But with that
> caveat out of the way, here's my take on the matter.  Of necessity,
> CANSLIM has to be a fairly simple (ha!) system so that it can be applied
> by a wide range of IBD readers -- let's face it, IBD and CANSLIM need
> each other for both to prosper.  For more sophisticated investors, who
> understand what the rules are *before* they  consider breaking them, I
> suspect that the fundamental analysis aspects of CANSLIM *can* be
> applied successfully using other technical patterns besides the C&H.
>  WON can't do that because he needs to keep his system simple enough to
> explain in short newspaper articles.
>
> Bottom line:  I am planning to look for opportunities to apply B's
> patterns but I am going to continue to make my focus the C&H pattern, at
> least until I understand the other patterns as well as I am beginning to
> understand the C&H.
>
> Thanks for your observations.
> Warren
>
> Katherine Malm wrote:
>
> > Well, Warren, you've managed the $1m question. So here's my current
> > "take" on it--During strongly trending Bulls where everything is
> > rising, buying stocks near their 52 wk highs coming out of C&H or flat
> > base consolidations is fine and dandy. This assumes that any
> > correction will be followed by more up-movement as the stock changes
> > hands. It also assumes that earnings will continue to be good and will
> > grow at current or higher rates.
> >
> >
> >
> > Then there's the market coming off the bottom of an Ursa Major
> > correction. Earnings estimates and growth rates have been coming down,
> > prices have been coming down, every stock gets punished, most every
> > stock gets its outlook revised downward, all stocks in all "previously
> > overvalued" industries all get hit. But, there are plenty of stocks in
> > this shape that were hit too hard, their earnings outlook is now
> > improving, the economy appears to be turning around, and in certain
> > cases, these stocks have strong competitive advantage, strong
> > products/services, and more importantly strong balance sheets. This is
> > a long winded way to get here....but if the earnings growth estimates
> > have been slashed too low, then the prices have been slashed too low.
> > I'd say the next move for these kinds of stocks is up, and in some
> > cases, it will actually precede the earnings evidence. Wait for the
> > B/O of a C&H near the old highs and miss out on all the fun! er,
profits!
> >
> >
> >
> > This is definitely not "party line." But if I have a good quality
> > CANSLIM stock that fits all the requirements, where in CANSLIM does it
> > tell me I can't use other technical patterns? Without Bulkowski, I
> > wouldn't have figured that out, however. Now, don't you dare reveal
> > that I'm working on the edges of CANSLIM or I'll get kicked off the
> > list! Hah!
> >
> >
> >
> > Tell me your thoughts on this...
> >
> >
> >
> > Katherine
> >
> >     ----- Original Message -----
> >
> >     From: Warren Keuffel <mailto:wkeuffel@xmission.com>
> >
> >     To: canslim <mailto:canslim@lists.xmission.com>
> >
> >     Sent: Tuesday, January 08, 2002 11:38 AM
> >
> >     Subject: [CANSLIM] Bulkowski re: patterns besides C&H
> >
> >
> >     Katherine,
> >
> >     My copy of Bulkowski arrived yesterday and (like others) I was
> >     mightily
> >     impressed.  I was particularly intrigued by his analysis of C&H
> >     patterns, particularly in how O'Neill's example was not actually a
> >     C&H!
> >      But what I am writing you about specifically is to inquire
> >     whether you
> >     have applied B.'s pattern analysis to other patterns observed in
> >     stocks
> >     you trade?  Seems to me that, if B's research and analysis is
> >     accurate,
> >     that we would do well to have more arrows in our quivers than just
> >     C&H.
> >
> >     Thanks,
> >     Warren
> >
> >
> >     -
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> >
>
>
>
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>
>




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