Go to Jeff Salisbury LWGate Home Page.From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: RE: [CANSLIM] A short ride
Date: Fri, 8 Mar 2002 14:08:45 -0500
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Jans: You don't...and that's my point! Let me clarify with an example... You buy a stock that breaks out. The next day, your alert goes off around noon that the stock's trading at 150% volume, and falling, 9% off the pivot where you got it. You pull up the intraday chart, and there it is...down at the bottom of it's range AT THAT POINT IN TIME...and falling. You sell. Next day, you look at the chart, and lo and behold, the stock closed, as in the example IBD used, down at the very bottom of its daily range. My you were smart to sell when you did. WON was right. But what if the stock rallied in the late afternoon, as they often do, to close down just 5% on triple volume? Boy, selling when I did was stupid. WON says to expect that kind of action after a breakout! Even though during the day it was off as much as 12%. However, is it not true (in THIS example) that had you stuck to the original CANSLIM strategy, basing decisions on what a stock CLOSES at each day, you'd have been better off? My point I tried to make is, the pendulum is probably swinging back again. And maybe we need to shelve the day-trader mentality of the 90's for a more rational mode as expressed in the original CANSLIM. Just a thought. This weekend, I'm going to look at the stocks I got stopped out of since January 1. I'm going to "re-buy" them as of the close the day they broke out; and I'm going to "sell" them at the opening the day AFTER they lose >7%. Just for kicks. If I've learned one thing this past year from WON, it's don't hide your mistakes; study them and learn. Duke > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Spencer48@aol.com > Sent: Friday, March 08, 2002 11:15 AM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] A short ride > > > Duke: > > How do you know it is at the bottom of its daily range until > the stock > closes? > > jans > > > In a message dated 3/8/2002 9:45:09 AM Eastern Standard Time, > dukemill@tampabay.rr.com writes: > > << My recollection is, Mike, is to expect just that scenario > you've described > below, but ONLY when it CLOSES at the BOTTOM of the fall on high volume. > Which poses a question : If it's noon, the stock is trading in > the bottom of > it's range on high volume, should you sell?... >> > > - > -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.
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