Re: [CANSLIM] ASIA?

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ASIA?
Date: Mon, 14 Jan 2002 22:02:44 -0500
Next Article (by Subject): RE: [CANSLIM] ASIA? "Dave"
Previous Article (by Subject): Smart Investing can Make You Wealthy (3213xRjB2-409tNgY5860sKcW1-91@27)
Next in Thread: RE: [CANSLIM] ASIA? "Dave"
Articles sorted by: [Date] [Author] [Subject]
Thanks for the retrospective, Dave.

With your thinking that "the Nasdaq will continue to do well for a few
months ", does this mean you were just trying to trade it for a short term
profit?  Would a long term investment perspective have changed either your
entry point, or your tight stop?

While UTSI is in a different group (Telecom Equip vs Internet-Network
Sec/Solutions), today's action looks to me to be a failed breakout being
confirmed. In both cases, though, the chart suggests to me that the 50 DMA
will coincide with the short prior base, and give support. Should ASIA
settle into another short base in the 17-18 range, would you again be a
buyer? What would trigger your decision to act?

Be careful of using how a stock (DFXI) in an unrelated group is behaving to
analyze another stock's chart. Stay within the group, or at least related
groups, for this.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Dave" <drubin@i-2000.com>
To: <canslim@lists.xmission.com>
Sent: Monday, January 14, 2002 10:11 AM
Subject: RE: [CANSLIM] ASIA?


> In a nutshell, with ASIA I convinced myself to take a gamble with the
> chart formation because there were things I liked about the stock:
>
>  - Although the Internet/Network Security group is not in favor now, I
> feel it will be one of the first tech groups to recover, and recover
> strongly.
>
>  - China continues to be a growth area for Internet and wireless
> technology. Other stocks with significant interest in China, such as UTSI,
> have broken out recently.
>
>  - I think the Nasdaq will continue to do well for a few months and I'm
> trying to put some cash to work.
>
>  - Despite the sloppy handle, I still think it is a great chart. DFXI had
> a sloppier handle and is still holding its breakout. ASIA's volume on 1/7
> and beyond was well above average.
>
>  - Having missed the ASIA breakout on 1/7 I had it on my watchlist for a
> pullback.
>
> In hindsight, buying breakout pullbacks, especially in this market, is not
> a safe strategy. The high volume alone should have made me more cautious.
> But I decided to take the risk, using a tight stop.
>
> This group was very helpful by pointing out the weaknesses that I knew
> about, and some that I didn't. Although I'm not a CANSLIM purist and will
> use other strategies from time to time, I was clearly buying ASIA as a
> CANSLIM breakout and this group helped me to put that decision in the
> right perspective.
>
> I'm still watching ASIA. Although technically the breakout failed I think
> it is doing well to stay above 19.6, the low on breakout day. If the last
> few days of market weakness is just a brief pullback in an uptrend, ASIA
> still has a good chance of moving higher.
>
> Nevertheless, in this market, I have seen yet another example that
> second-chance buy opportunities usually do not work out. If you miss a
> breakout, move on. If you catch a breakout and the stock shows signs of
> weakness, be very cautious. This is not a bull market by any stretch.
>
>
>
>
> > -----Original Message-----
> > From: owner-canslim@lists.xmission.com
> > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley
> > Sent: Friday, January 11, 2002 11:58 PM
> > To: canslim@lists.xmission.com
> > Subject: Re: [CANSLIM] ASIA?
> >
> >
> > Dave, the only way you truly lose is if you are not able to
> > learn from the
> > experience. I know I would be interested, and suspect many other members
> > would also be interested, in you doing a retrospective piece on
> > ASIA. There
> > has been lots of discussion and feedback today and prior. Would be
> > interested in your thoughts on the experience, what you may have learned
> > from the group's comments you didn't know or see when you
> > bought it, what
> > you may do differently on this or another stock in the future,
> > and what else
> > you may have learned from it.
> >
> > Tom Worley
> > stkguru@netside.net
> > AIM: TexWorley
> > ----- Original Message -----
> > From: "Dave" <drubin@i-2000.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Friday, January 11, 2002 9:41 AM
> > Subject: RE: [CANSLIM] ASIA?
> >
> >
> > > You all win, I lose. This is clearly a failed breakout now. Out with a
> > > small loss, and another lesson learned :)
> > >
> > >
> > > --
> > > Dave
> > >
> > >
> > > -
> > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > > -In the email body, write "subscribe canslim" or
> > > -"unsubscribe canslim".  Do not use quotes in your email.
> > >
> > >
> >
> >
> >
> > -
> > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > -In the email body, write "subscribe canslim" or
> > -"unsubscribe canslim".  Do not use quotes in your email.
> >
>
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your email.
>



- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.
Go to Jeff Salisbury LWGate Home Page.