Go to Jeff Salisbury LWGate Home Page.From: "stock oper8or" <stockoper8or@hotmail.com>
Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle?
Date: Fri, 25 Jan 2002 07:34:22 +0000
Previous Article (by Author): Re: [CANSLIM] Mr. Greenspan "Tom Worley"
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Never heard a reversal called a tail before but I like it. The loose action of this stock's price and volume in addition to today's high volume minor reversal is a bit of a negative. It almost had an outside day (higher high and lower low than prior day) as well, but at least it did not close near its low. If it had, it would have been a signal to sell at least part of one's position. But as you say, as long as it holds that $32 support area... >From: "Katherine Malm" <kmalm@earthlink.net> >Reply-To: canslim@lists.xmission.com >To: <canslim@lists.xmission.com> >Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? >Date: Thu, 24 Jan 2002 12:58:19 -0600 > >Thanks stockoper8or and Tom for your input. > >I am watching DFXI with great interest as a "case study." The last couple >of days seemed to indicate strength as the stock bounced again off the >pivot. Today, however, the action is forming the dreaded tail on fairly >high volume. Will be interesting to see how it plays out. > >Katherine > ----- Original Message ----- > From: stock oper8or > To: canslim@lists.xmission.com > Sent: Monday, January 21, 2002 6:34 PM > Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? > > > 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 > > > _________________________________________________________________ > Send and receive Hotmail on your mobile device: http://mobile.msn.com > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. _________________________________________________________________ MSN Photos is the easiest way to share and print your photos: http://photos.msn.com/support/worldwide.aspx - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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