Re: [CANSLIM] DFXI vs. JEC--Faulty handle?

From: "stock oper8or" <stockoper8or@hotmail.com>
Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle?
Date: Tue, 22 Jan 2002 00:34:11 +0000

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Top of Thread: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? "Tom Worley"
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I thought DFXI looked somewhat sloppy in the handle but not enough to 
preculde its purchase:  There were 5 down days on above average volume, the 
pattern was wide and loose, never really formed a downward wedge and the 
volume did not really "dry up".  One of the best indicators of a chart's 
quality is its weekly chart.  I believe you want to see what looks like a 
real handle in the weekly chart.  On the weekly of DFXI you can see the wide 
action of the handle and it never really looked like a classic handle, but 
more like a pennant or triangle.

Neverthess the breakout was very strong, gapping out on more than double 
average daily volume.  It could be argued that the strength of the breakout 
outweighed the imperfect action in the handle.  All in all, this was not a 
perfect chart but was probably worth buying as it had such strong qualities 
other than the non-ideal price-volume action in the handle.  While it has 
given back all its gains plus a little bit, it is still holding right in the 
pivot area.  If it holds at the lows of the past 2 days, I would say it is 
worth holding.  If I owned it (which I don't), I would put my stop pretty 
close to those intraday lows.

By comparison JEC (during October) was so wide and loose that even though 
it's "handle?" was downward sloping and the volume did dry up from Oct 
18-20, the action was just not constructive whatsoever.  There was as much 
or more down volume as up volume coming up the right side and the stock had 
multiple intraday reversals on above average volume.  When it did try to 
"break out" the volume barely exceeded average.  This was definitely not a 
buy by any stretch of the imagination.


>From: "Katherine Malm" <kmalm@earthlink.net>
>Reply-To: canslim@lists.xmission.com
>To: <canslim@lists.xmission.com>
>Subject: [CANSLIM] DFXI vs. JEC--Faulty handle?
>Date: Sun, 20 Jan 2002 07:50:53 -0600
>
>DFXI's chart has been bothering me for some time. An Investor's Corner 
>article dated 12/17/01 used JEC as an example of a "zig-zag" faulty handle. 
>What do you think, could DFXI have the same faulty handle?
>
>http://WallStreet-LLC.com/pub/DFXI_011802.jpg
>http://WallStreet-LLC.com/pub/JEC_011802.jpg
>
>Katherine


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