Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Industry group movements.
Date: Sun, 17 Feb 2002 11:03:38 -0600
Previous Article (by Date): Re: AW: [CANSLIM] Lack of Buy Candidates "Katherine Malm"
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This is a multi-part message in MIME format. - ------=_NextPart_000_0004_01C1B7A2.C09EC4A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hey Andreas, Outstanding examples....thanks for taking the time to post them. Katherine ----- Original Message -----=20 From: Andreas Himmelreich=20 To: 'canslim@lists.xmission.com'=20 Sent: Sunday, February 17, 2002 9:13 AM Subject: AW: [CANSLIM] Industry group movements. Hi, Once again a quote from http://beta.dailygraphs.com/tutorials/b04a.asp = - --> "Here's a case where herd mentality works to your advantage. Studies = show=20 37% of a stock's move is directly tied to the performance of the = industry=20 the stock is in. Another 12% is due to strength in its overall = sector." I put a file to http://WallStreet-LLC.com/pub/IGfiles.zip, which shows = the=20 correlation in an example. I found hundreds of them and still find = them=20 every day. Basically you can take the chart patterns and apply them to = industry groups and you will find very strong and dependable trends = where=20 false breakouts take place, but much less then with individual stocks. Here and example on the short side: http://WallStreet-LLC.com/pub/IGShortexample.zip Here an example for an IG that sets up a bull market for its members: http://WallStreet-LLC.com/pub/BullmarketforBuilders.zip Important is: Price and RS need to make new highs (lows for shorting) = our=20 of a base for a buy signal. For the long side I like IGs that cross RS = of=20 60 to 70. On the short side crossing RS of 30. But it can be also very profitable to get into trends that are well=20 established, e.g. where the RS is above 90, but then be sure that you = wait=20 for a second price and RS base and a second Breakout to get in and be = rigid=20 if the group shows sell signals. Best Regards Andreas And this is perfectly canslim, because Oneil states that if you go = with a=20 breakout, look if other stocks out of the group have or had a breakout = as=20 well ... > -----Urspr=FCngliche Nachricht----- > Von: Gary A. Snyder [SMTP:gas175k@hotmail.com] > Gesendet am: Sunday, February 17, 2002 2:30 PM > An: canslim@lists.xmission.com > Betreff: [CANSLIM] Industry group movements. > > > > > > I am fascinated by industry group movement but can't figure out what = move=20 > groups up and down. For example: EPIQ is for sure a fine investment = and I=20 > have owned it but the last big move it made from about 13 to 25 the=20 industry > group moved from at least the lower B group to 30-32. If the = industry=20 group > had not moved EPIQ would still be building a base. In the same group = BARZ=20 > went from 35 to 55, ADVS 29 to 51, FIC 39 to 63, BSYS 44 to 63. Even = thought > these companies offer completely different software to the financial > industry. A few months ago IBD used GNSS, a semi manufacture, as an=20 example > of a successful cup and handle but failed the mention that the = industry > group started up from a e rating and worked its way up to at least = the=20 mid b > rating, against WON rule look in the top sixty groups. Not just = GNSS,=20 all > the semi manufacturing stocks were going up even if they were over = bought=20 by > as much as 50%. You may think that you are picking good companies = and you=20 > are but they are not going anywhere until the industrial group is = going=20 up. > So what moves these industry groups? Some are easy to figure: = defense > stocks- government spending to increase dramatically per purposed = budget.=20 > Safety and security- the terrorist effect. Any computer group a = month=20 ago- I > don't have a clue. You don't want to know how poorly some of these=20 security > companies were rated when they started moving up and they are not > fundamentally good companies but that doesn't matter if the market=20 perceives > future growth. Some of these security companies have very poor=20 fundamentals > but that does not stop them from going through the roof if the = industry > group is on the rise. The rating on some of these companies look = great > now(after the fact). Lower oil prices helped the success of > transportation/trucking even in a bad economy but if the price of = oil=20 goes > up for any of a number of reasons, number one being Iraq targeted as = the > next enemy on the war on terrorism transportation/trucking will go = down=20 so > fast only bested by oil&gas/any company with proved oil reserves = going=20 up. > You don't have to pick the best company in the group. Throw a dart = at any=20 > company on the list for success. Home builders: low interest rates, > increased new home sales, increased building permits but let the = interest=20 > rates go up a little and home builders start correcting along with = home > mortgage businesses and banks living on refinancing income. In fact = let=20 an > influential analysis say interest rates have bottomed and all these=20 groups > start down no proof needed.Good companies along with bad. I'm = confused=20 and > bloodied but feel one key is tracking industry groups. I ask for = comment > and/or instruction. gas175k > > > > _________________________________________________________________ > 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. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0004_01C1B7A2.C09EC4A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 5.50.4807.2300" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hey Andreas,</DIV> <DIV> </DIV> <DIV>Outstanding examples....thanks for taking the time to post = them.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Djudgejimmy@web.de href=3D"mailto:judgejimmy@web.de">Andreas = Himmelreich</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:'canslim@lists.xmission.com'">'canslim@lists.xmission.com'= </A>=20 </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, February 17, 2002 = 9:13=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> AW: [CANSLIM] Industry = group=20 movements.</DIV> <DIV><BR></DIV>Hi,<BR><BR>Once again a quote from <A=20 = href=3D"http://beta.dailygraphs.com/tutorials/b04a.asp">http://beta.daily= graphs.com/tutorials/b04a.asp</A>=20 --><BR><BR>"Here's a case where herd mentality works to your = advantage.=20 Studies show <BR>37% of a stock's move is directly tied to the = performance of=20 the industry <BR>the stock is in. Another 12% is due to strength in = its=20 overall sector."<BR><BR>I put a file to <A=20 = href=3D"http://WallStreet-LLC.com/pub/IGfiles.zip">http://WallStreet-LLC.= com/pub/IGfiles.zip</A>,=20 which shows the <BR>correlation in an example. I found hundreds of = them and=20 still find them <BR>every day. Basically you can take the chart = patterns and=20 apply them to <BR>industry groups and you will find very strong and = dependable=20 trends where <BR>false breakouts take place, but much less then with=20 individual stocks.<BR><BR>Here and example on the short = side:<BR><BR><A=20 = href=3D"http://WallStreet-LLC.com/pub/IGShortexample.zip">http://WallStre= et-LLC.com/pub/IGShortexample.zip</A><BR><BR>Here=20 an example for an IG that sets up a bull market for its = members:<BR><BR><A=20 = href=3D"http://WallStreet-LLC.com/pub/BullmarketforBuilders.zip">http://W= allStreet-LLC.com/pub/BullmarketforBuilders.zip</A><BR><BR>Important=20 is: Price and RS need to make new highs (lows for shorting) our <BR>of = a base=20 for a buy signal. For the long side I like IGs that cross RS of <BR>60 = to=20 70.<BR>On the short side crossing RS of 30.<BR><BR>But it can be also = very=20 profitable to get into trends that are well <BR>established, e.g. = where the RS=20 is above 90, but then be sure that you wait <BR>for a second price and = RS base=20 and a second Breakout to get in and be rigid <BR>if the group shows = sell=20 signals.<BR><BR>Best Regards<BR><BR>Andreas<BR><BR><BR><BR><BR><BR>And = this is=20 perfectly canslim, because Oneil states that if you go with a = <BR>breakout,=20 look if other stocks out of the group have or had a breakout as = <BR>well=20 ...<BR><BR><BR><BR><BR><BR><BR>> -----Urspr=FCngliche = Nachricht-----<BR>>=20 Von: Gary A. Snyder [SMTP:gas175k@hotmail.com]<BR>> Gesendet am: = Sunday,=20 February 17, 2002 2:30 PM<BR>> An: <A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= <BR>>=20 Betreff: [CANSLIM] Industry group=20 movements.<BR>><BR>><BR>><BR>><BR>><BR>> I am = fascinated by=20 industry group movement but can't figure out what move <BR>> groups = up and=20 down. For example: EPIQ is for sure a fine investment and I <BR>> = have=20 owned it but the last big move it made from about 13 to 25 the=20 <BR>industry<BR>> group moved from at least the lower B group to = 30-32. If=20 the industry <BR>group<BR>> had not moved EPIQ would still be = building a=20 base. In the same group BARZ <BR>> went from 35 to 55, ADVS 29 to = 51, FIC=20 39 to 63, BSYS 44 to 63. Even <BR>thought<BR>> these companies = offer=20 completely different software to the financial<BR>> industry. A few = months=20 ago IBD used GNSS, a semi manufacture, as an <BR>example<BR>> of a=20 successful cup and handle but failed the mention that the = industry<BR>>=20 group started up from a e rating and worked its way up to at least the = <BR>mid=20 b<BR>> rating, against WON rule look in the top sixty groups. = Not=20 just GNSS, <BR>all<BR>> the semi manufacturing stocks were going up = even if=20 they were over bought <BR>by<BR>> as much as 50%. You may think = that you=20 are picking good companies and you <BR>> are but they are not going = anywhere until the industrial group is going <BR>up.<BR>> So what = moves=20 these industry groups? Some are easy to figure: defense<BR>> = stocks-=20 government spending to increase dramatically per purposed budget. = <BR>>=20 Safety and security- the terrorist effect. Any computer group a month = <BR>ago-=20 I<BR>> don't have a clue. You don't want to know how poorly some of = these=20 <BR>security<BR>> companies were rated when they started moving up = and they=20 are not<BR>> fundamentally good companies but that doesn't matter = if the=20 market <BR>perceives<BR>> future growth. Some of these security = companies=20 have very poor <BR>fundamentals<BR>> but that does not stop them = from going=20 through the roof if the industry<BR>> group is on the rise. The = rating on=20 some of these companies look great<BR>> now(after the fact). Lower = oil=20 prices helped the success of<BR>> transportation/trucking even in a = bad=20 economy but if the price of oil <BR>goes<BR>> up for any of a = number of=20 reasons, number one being Iraq targeted as the<BR>> next enemy on = the war=20 on terrorism transportation/trucking will go down <BR>so<BR>> fast = only=20 bested by oil&gas/any company with proved oil reserves going=20 <BR>up.<BR>> You don't have to pick the best company in the group. = Throw a=20 dart at any <BR>> company on the list for success. Home builders: = low=20 interest rates,<BR>> increased new home sales, increased building = permits=20 but let the interest <BR>> rates go up a little and home builders = start=20 correcting along with home<BR>> mortgage businesses and banks = living on=20 refinancing income. In fact let <BR>an<BR>> influential analysis = say=20 interest rates have bottomed and all these <BR>groups<BR>> start = down no=20 proof needed.Good companies along with bad. I'm confused = <BR>and<BR>>=20 bloodied but feel one key is tracking industry groups. I ask for=20 comment<BR>> and/or instruction. = gas175k<BR>><BR>><BR>><BR>>=20 = _________________________________________________________________<BR>>= MSN=20 Photos is the easiest way to share and print your photos:<BR>> <A=20 = href=3D"http://photos.msn.com/support/worldwide.aspx">http://photos.msn.c= om/support/worldwide.aspx</A><BR>><BR>><BR>>=20 -<BR>> -To subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>= ; -In=20 the email body, write "subscribe canslim" or<BR>> -"unsubscribe=20 canslim". Do not use quotes in your email.<BR><BR>-<BR>-To=20 subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0004_01C1B7A2.C09EC4A0-- - - - -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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