Go to Jeff Salisbury LWGate Home Page.From: Andreas Himmelreich <judgejimmy@web.de>
Subject: AW: [CANSLIM] DFXI vs. JEC--Faulty handle?
Date: Sat, 26 Jan 2002 13:19:10 +0100
Next Article (by Author): Re: [CANSLIM] DFXI vs. JEC--Faulty handle? "Dan Forant"
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The cup deep is a function of the bear market ... somewhere in HTMMIS > -----Ursprungliche Nachricht----- > Von: Dan Forant [SMTP:dforant1@nycap.rr.com] > Gesendet am: Saturday, January 26, 2002 12:56 PM > An: canslim@lists.xmission.com > Betreff: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? > > Hey, nice graphic. Will hold onto this one. I did read somewhere where a 50% deep cup coming out of a bad bear run is acceptable. > > DanF > ----- Original Message ----- > From: Mike Gibbons > To: canslim@lists.xmission.com > Sent: Friday, January 25, 2002 8:46 PM > Subject: RE: [CANSLIM] DFXI vs. JEC--Faulty handle? > > > > Is a cup's depth supposed to be no deeper than 35%?? > > Actually, 33% is the Max. > > From some recent (as yet) unpublished research.... > > > > > > Aloha, > > Mike Gibbons > Proactive Technologies, LLC > http://www.proactech.com > > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Dan Forant > Sent: Friday, January 25, 2002 3:06 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? > > > Is a cup's depth supposed to be no deeper than 35%?? > > DanF > > ----- Original Message ----- > From: "Mike Gibbons" <mikegibbons@proactech.com> > To: <canslim@lists.xmission.com> > Sent: Friday, January 25, 2002 1:25 PM > Subject: RE: [CANSLIM] DFXI vs. JEC--Faulty handle? > > > > I was a little critical of DFXI's handle when Dave brought it to our > > attention on 1/8, but appropriately contrite when it surged the following > > day. > > > > For an example of a more classic cwh chart, have a look at JBHT. This > stock > > has shown 4 stages now of advancing on high volume and then pulling back > on > > reducing volume before surging again. It may be forming another cup > > yesterday and today. (yesterday's reversal was a bit disconcerting but > there > > is a subtlety in this kind of a reversal that diminishes its significance: > > If you think of yesterday and the breakout day before as one long day, > i.e. > > put the two days atop each other, then the stock closed in the top third > of > > its (2-day)range on massive volume. That is positive. And all of > > yesterday's volume was above the prior high. That was also positive. So > > although technically yesterday was a reversal, it was not a sell signal. > > > > We had this on our "low" handle list (based on Weinstein) when it formed > > it's first cup in November and it reappeared on our lists at each > subsequent > > cup formation. The fundamentals were never sufficiently strong to make it > a > > CANSLIM stock but as an example of a cup and handle, I think it's a good > > one. I'm pleased to be holding it for a nice gain. > > > > Aloha, > > > > Mike Gibbons > > > > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Spencer48@aol.com > > Sent: Friday, January 25, 2002 7:56 AM > > To: canslim@lists.xmission.com > > Subject: Re: [CANSLIM] DFXI vs. JEC--Faulty handle? > > > > > > Katherine: > > > > To me DFXI does not look even like a nice Cup (much less a cup with a > > zig/zag handle. However, I realize analyzing is all in perspective (like > > beauty, it's in the eye of the beholder, I guess). Anyway, there was an > on > > point (at least I think so) article today in IBD. You might find it > useful. > > It concerns wide and loose bases: > > > > "Investor's Corner > > Friday, January 25, 2002 > > > > Base Can Be Tight And Loose > > BY MONIKA TJIA > > > > INVESTOR'S BUSINESS DAILY > > > > > > Stocks form a variety of bases. Whether the base is a cup-with-handle or a > > double-bottom, in most cases you'll find at least a week or two of wild > > price > > action. > > > > That's OK. After all, investors' emotions fuel stock movements. Fear > drives > > prices sharply down, and greed yanks them back up. > > > > But if you see this erratic buying and selling throughout the base, watch > > out. An excessive number of dizzying price swings indicates institutions > are > > moving in and out with ease. For every eager buyer, count an anxious > seller. > > > > An occasional shakeout is fine. But you want a base to also have at least > > several weeks of tight, quiet price action. This indicates solid support > > throughout a base. > > > > Tight action means small price gaps from a stock's weekly high to its > weekly > > low. Often you'll see a stock close the week virtually unchanged for > several > > weeks in a row. This implies a lack of speculators and a load of steady > > long-term shareholders. > > > > >From its October 1998 low to its April 16, 1999, high, Techne (TECH) ran > up > > 150%. At its April peak (see point 1 in accompanying image), the > > fast-growing > > maker of cytokine test kits used to find new drugs formed a new base, > > correcting 24% from its high. > > > > As Techne formed its cup-with-handle base, it moved up and down in tiny > > steps. At the end of each week in May, the stock finished very close to > its > > prior weekly close (point 2). > > > > In the week ended May 21, the stock swung as much as 12%. But it had a > > positive reversal. For the week, it finished up 0.13 point vs. the prior > > week > > (point 3). This price action is exactly what you want to see, because > > institutions raced in to support the stock. > > > > As Techne etched the right side of its base, the weekly spreads grew > wider. > > But weeks of quiet action far outnumbered its weeks of wild price swings. > > > > On Aug. 25, 1999, Techne broke out of its 19-week base on triple average > > trade (point 4). > > > > After breaking out, Techne moved sideways for a few weeks. It held above > its > > 50-day moving average. When the market finally took off in late October, > so > > did Techne. > > > > >From its breakout to its July 2000 peak, Techne gained 416%. It then > began > > to > > carve a new three-month base. But in terms of complexion, this one was the > > exact opposite of its previous base. > > > > Instead of making slight price moves, it made extreme ones virtually every > > week. The price swings ranged as much as 26%. Techne failed to finish its > > base. It's now 56% off its all-time high." > > > > jans > > > > > > > > In a message dated 1/25/2002 9:30:10 AM Eastern Standard Time, > > kmalm@earthlink.net writes: > > > > << Hi stockoper8or, > > > > When I wrote my note mid-day, DFXI had a tail. Looks like it ended > midrange > > after dropping a bit more after my note. Interesting action. I suspect in > a > > stronger market it would have been up and out of here by now. I wonder if > > the > > zig zag handle that started it all was a sign of market iffiness or a sign > > of > > stock iffiness. Just one for the "I wonder" pile of thoughts! > > >> > > > > - > > -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. > > << Datei: ATT00005.htm >> << Datei: cwh_WON.gif >> - - - -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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