Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Industry group movements.
Date: Sun, 17 Feb 2002 14:36:18 -0600
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Yes, jans, that's my belief.
While you can see how the industry has changed in rating from last week =
to this week, it is still a lagging indicator that is looking 6 months =
back. The same holds for something like the DGO's RS rating for the =
stock. It shows the price performance of the stock relative to all other =
IBD6000 stocks over the last 12 months, but it is actually the relative =
*behavior* of the RS that is more important. Example, a stock at the =
beginning of its move might have a RS of 60-70, but if the RS has been =
*rising* steadily to get there, you are starting to watch it early as it =
sets up out of its current consolidation. Often times, if you wait to =
look at the stock until after the RS is 80 or 85, much of the move is =
already over. In a strong bull market, it's less of an issue, because =
the strength will tend to continue. But in markets that are not strongly =
trending, you may only get one chance to ride the strength before the =
stock and the industry roll over and money rotates elsewhere.
Katherine
----- Original Message -----=20
From: Spencer48@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Sunday, February 17, 2002 2:03 PM
Subject: Re: [CANSLIM] Industry group movements.
Katherine:
DG (and IBD) I thought give yesterday's and last weeks IGS rating =
(Industry Group Strength). I agree it is not enough, especially when =
the=20
markets are in a bearish and volatile mode, but is your contention =
that IGS=20
ratings in IBD are not very timely-even if there are available weekly =
and=20
yesterday's ratings?
jans
In a message dated 2/17/2002 9:48:17 AM Eastern Standard Time,=20
kmalm@earthlink.net writes:
<< Another issue that I have with IBD is that the industry rankings =
are based=20
on 6 months with the 3 most recent months more heavily weighted. =
That's all=20
well and good when the market is in a strong uptrend lasting for many =
years,=20
but the ratings are laggard when the market is choppy, is in the midst =
of=20
contra bear rallies, or is in a long sideways mode. In this case, the=20
industries rotate more quickly and if one wants to ride them, they =
need tools=20
to identify rising industries more quickly than the IBD rankings. I =
actually=20
discovered this by accident many years ago when I became frustrated =
with=20
trying to track industry movement by highlighting and placing little =
arrows=20
in the paper's industry chart. I couldn't get a "picture" of the =
movement. >>
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<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
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<BODY bgColor=3D#ffffff>
<DIV>Yes, jans, that's my belief.</DIV>
<DIV> </DIV>
<DIV>While you can see how the industry has changed in rating from last =
week to=20
this week, it is still a lagging indicator that is looking 6 months =
back. The=20
same holds for something like the DGO's RS rating for the stock. It =
shows the=20
price performance of the stock relative to all other IBD6000 stocks over =
the=20
last 12 months, but it is actually the relative *behavior* of the RS =
that is=20
more important. Example, a stock at the beginning of its move might have =
a RS of=20
60-70, but if the RS has been *rising* steadily to get there, you are =
starting=20
to watch it early as it sets up out of its current consolidation. Often =
times,=20
if you wait to look at the stock until after the RS is 80 or 85, much of =
the=20
move is already over. In a strong bull market, it's less of an issue, =
because=20
the strength will tend to continue. But in markets that are not strongly =
trending, you may only get one chance to ride the strength before the =
stock and=20
the industry roll over and money rotates elsewhere.</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=3DSpencer48@aol.com=20
href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</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>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, February 17, 2002 =
2:03=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Industry =
group=20
movements.</DIV>
<DIV><BR></DIV>Katherine:<BR><BR> DG (and IBD) =
I=20
thought give yesterday's and last weeks IGS rating <BR>(Industry Group =
Strength). I agree it is not enough, especially when the =
<BR>markets are=20
in a bearish and volatile mode, but is your contention that IGS =
<BR>ratings in=20
IBD are not very timely-even if there are available weekly and =
<BR>yesterday's=20
ratings?<BR><BR>jans<BR><BR>In a message dated 2/17/2002 9:48:17 AM =
Eastern=20
Standard Time, <BR><A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>=20
writes:<BR><BR><< Another issue that I have with IBD is that the =
industry rankings are based <BR>on 6 months with the 3 most recent =
months more=20
heavily weighted. That's all <BR>well and good when the market is in a =
strong=20
uptrend lasting for many years, <BR>but the ratings are laggard when =
the=20
market is choppy, is in the midst of <BR>contra bear rallies, or is in =
a long=20
sideways mode. In this case, the <BR>industries rotate more quickly =
and if one=20
wants to ride them, they need tools <BR>to identify rising industries =
more=20
quickly than the IBD rankings. I actually <BR>discovered this by =
accident many=20
years ago when I became frustrated with <BR>trying to track industry =
movement=20
by highlighting and placing little arrows <BR>in the paper's industry =
chart. I=20
couldn't get a "picture" of the movement. >><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>
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