Re: AW: [CANSLIM] Industry group movements.

From: "Gary A. Snyder" <gas175k@hotmail.com>
Subject: Re: AW: [CANSLIM] Industry group movements.
Date: Tue, 19 Feb 2002 09:56:16 -0500
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Andreas:
How does one find the RS and price of industrial groups? Are you saying 
industrial groups rated or passing into the top 60 or 75% of all the groups? 
In other words groups ranked at least 50 to 79 in the 197 rankings? or RS of 
90 or above is that in the top 10% of the ratings? gas175
>From: Andreas Himmelreich <judgejimmy@web.de>
>Reply-To: canslim@lists.xmission.com
>To: "'canslim@lists.xmission.com'" <canslim@lists.xmission.com>
>Subject: AW: [CANSLIM] Industry group movements.
>Date: Sun, 17 Feb 2002 16:13:18 +0100
>
>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
>37% of a stock's move is directly tied to the performance of the industry
>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
>correlation in an example. I found hundreds of them and still find them
>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
>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
>of a base for a buy signal. For the long side I like IGs that cross RS of
>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
>established, e.g. where the RS is above 90, but then be sure that you wait
>for a second price and RS base and a second Breakout to get in and be rigid
>if the group shows sell signals.
>
>Best Regards
>
>Andreas
>
>
>
>
>
>And this is perfectly canslim, because Oneil states that if you go with a
>breakout, look if other stocks out of the group have or had a breakout as
>well ...
>
>
>
>
>
>
> > -----Ursprüngliche 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
> > groups up and down. For example: EPIQ is for sure a fine investment and 
>I
> > have owned it but the last big move it made from about 13 to 25 the
>industry
> > group moved from at least the lower B group to 30-32. If the industry
>group
> > had not moved EPIQ would still be building a base. In the same group 
>BARZ
> > 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
>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
>mid b
> > rating, against WON rule look in the top sixty groups.  Not just GNSS,
>all
> > the semi manufacturing stocks were going up even if they were over 
>bought
>by
> > as much as 50%. You may think that you are picking good companies and 
>you
> > are but they are not going anywhere until the industrial group is going
>up.
> > So what moves these industry groups? Some are easy to figure: defense
> > stocks- government spending to increase dramatically per purposed 
>budget.
> > Safety and security- the terrorist effect. Any computer group a month
>ago- I
> > don't have a clue. You don't want to know how poorly some of these
>security
> > companies were rated when they started moving up and they are not
> > fundamentally good companies but that doesn't matter if the market
>perceives
> > future growth. Some of these security companies have very poor
>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
>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
>so
> > fast only bested by oil&gas/any company with proved oil reserves going
>up.
> > You don't have to pick the best company in the group. Throw a dart at 
>any
> > company on the list for success. Home builders: low interest rates,
> > increased new home sales, increased building permits but let the 
>interest
> > rates go up a little and home builders start correcting along with home
> > mortgage businesses and banks living on refinancing income. In fact let
>an
> > influential analysis say interest rates have bottomed and all these
>groups
> > start down no proof needed.Good companies along with bad. I'm confused
>and
> > bloodied but feel one key is tracking industry groups. I ask for comment
> > and/or instruction. gas175k
> >
> >
> >
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