Re: [CANSLIM] Opinions on KKD?

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Opinions on KKD?
Date: Sun, 13 Jan 2002 16:13:05 -0500

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I am not sure if I follow the logic of your reasoning, but one area where
you may be confusing yourself, and other members, is trying to combine a
LLUR pattern with a c&h pattern. They are not compatible. A good LLUR
pattern is not a short term pattern, rather it is best measured over a
period of one year or longer. Beginning patterns can be recognized over
shorter patterns, but they are higher risk because they are immature.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, January 13, 2002 3:28 PM
Subject: Re: [CANSLIM] Opinions on KKD?


> Rolf:
>
>      I've had trouble identifying relevant bases in the stock's past
because
> I never understood that WON gave a precise definition of 3rd, 4th or 5th
> stage bases.
>
>      According to Friday's 1/11/02 Investors Corner (which I'm basing my
> analysis of KKD on), KKD is in the throes of its 3rd base (I suppose that
one
> can see weakness in the stock in this type of pattern- afterwards-because
if
> the stock is basing for the 3 or 4th time, then it will likely be an LLUR.
> And-and as I understood Tom pointing out-once the LLUR changes it's angle,
it
> is likely topping out (this would make it consistent with WON's admonition
to
> avoid stocks with 4th or 5th stage bases).
>
>      The salient passages of the Investors Corner article for me was this:
> "... A stock need rise only 25% or more from its pivot to trigger a
new-stage
> base above it. As long as the new base doesn't undercut the lows of the
prior
> consolidation, add another checkmark to your list of bases. Few stocks
ever
> get to form late-stage bases. Only the best can break out of well-formed
> bases again and again, stacking gains on top of gains."
>
>      My view of KKD and the bases it has formed comes from DG (the daily
> version.  I imagine that day bases would affect the stock more in the
> short-term, and weekly bases would affect the stock more in the
> intermediate-to-long term).  Anyway, these are the bases that I see:  1st
> Base: 10/23-11/1; 2nd Base: 11/20-1129; 3rd Base: Began 12/28.  As far as
> differentiating between "a sloppy base" and those that aren't, I don't
know
> how this can be done-except afterwards, and with a lot of subjectivity.  I
> must admit, though, the Investor Corner definition would make it appear
that
> long cups (with a right LLUR leg that leads to a right lip) would make the
> Handle of this C&H suspect.  So,then, one wonders if this means that an
LLUR
> which leads to the Handle of a Long Cup can be disregarded as pointing to
a
> potentially weak stock-if the LLUR has 3rd, 4th, or 5th stage bases (and,
I
> would think that nearly ALL LLURs are subject to these bases, which I
would
> call: Corrections or Retracements.   Thus, when does a new base count
begin:
> When the stock has Broken Out of its Handle?
>
> jans
>
>
> In a message dated 1/13/2002 8:44:39 AM Eastern Standard Time,
> rolfh@mindspring.com writes:
>
> << For my edification, could you tell me the period in which you see the 3
>  bases?
>  Depending on whether I look at 6 month, 1 year, or 2 year charts, I see
>  a variety of what I might call a base, some sloppy, some not.
>
>  Thanks!
>    Rolf
>   >>
>
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