Re: [CANSLIM] CHBS

From: Spencer48@aol.com
Subject: Re: [CANSLIM] CHBS
Date: Mon, 28 Jan 2002 16:27:15 EST

Next Article (by Subject): Re: [CANSLIM] CHBS Warren Keuffel
Previous Article (by Subject): [CANSLIM] CHBS Warren Keuffel
Top of Thread: [CANSLIM] CHBS Warren Keuffel
Next in Thread: Re: [CANSLIM] CHBS Warren Keuffel
Articles sorted by: [Date] [Author] [Subject]

Warren:

     These are just my opinions based on my understanding of  WON's CANSLIM=20
ideas:  To me it does not yet invalidate the C&H formation.  If the handle=20
wedged upward, then CHBS would invalidated as a CANSLIM candidate.  Or if it=
=20
BO above its pivot point (about 34=BE) on lowish volume, then it also would=20=
not=20
be CANSLIMMISH.

     Sometimes a stock will rise to its pivot point on low volume.  If the=20
market is in a bull, the stock will break out with high volume.  If it is in=
=20
a bear (or consolidating) the stock probably will fall into a base-on-base,=20
or another handle consolidation.  To identify that the stock is still strong=
,=20
look at the volume.  It should be low.  The Big Picture on 1/28/02 gives wha=
t=20
I believe is apropos counsel: =20
      "Now is a good time to search for stocks with strong fundmentals.  Loo=
k=20
at IBD's yellow highlighted stocks; NY and NASDAQ Where The Big Money Is=20
Flowing and Stocks In The News; Weekend Review.  1) See if the buy candidate=
=20
has more up weeks in above average volume than down weeks in above average=20
volume (ie. the stock has more up weeks than downs, and the ups were=20
generally on above average volume).   2) Also note that the stock should ten=
d=20
to close in the upper half of each week's trading range.  3) See if the base=
s=20
are areas of tight trading ranges and closes. ALL OF THESE TRAITS PAINT A=20
PICTURE OF INSTITUTIONS ACCUMULATING THE STOCK.  IT STANDS TO REASON THAT IF=
=20
THEY SUPPORT THE STOCK DURING ITS BASING PHASE, THAT THEY WILL BE MORE LIKEL=
Y=20
TO BE HEAVY BUYERS WHEN THE STOCK BREAKS OUT."

     Also, another way to judge the strength of the stock:  Notice that the=20
RS line (in DGO) is strongish today (ie. it is trending up, and is at least=20
as high as it was at the left lip of the cup.

jans=20


In a message dated 1/28/2002 12:30:34 PM Eastern Standard Time,=20
wkeuffel@xmission.com writes:

<< CANSLIMers --
=20
 What do you make of CHBS?  The fundies are good, and it has (or had) a=20
 C&H with a nice handle, but now there is upward activity from the handle=20
 base but not on good volume.  Should the pattern of the handle=20
 disqualify the stock from consideration as a CANSLIM candidate?
=20
 Thanks,
 Warren >>

- -
- -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.