Re: [CANSLIM] Opinions on KKD?

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Opinions on KKD?
Date: Sun, 13 Jan 2002 15:28:46 EST

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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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