Re: [CANSLIM] BRLI

From: "Bill Triffet" <btriffet@earthlink.net>
Subject: Re: [CANSLIM] BRLI
Date: Wed, 27 Mar 2002 08:54:42 -0800
Next Article (by Date): [CANSLIM] gold prices "Robert McGill"
Previous Article (by Date): Re: [CANSLIM] BRLI Ian
Next in Thread: Re: [CANSLIM] BRLI Ian
Articles sorted by: [Date] [Author] [Subject]
Ian,

Have you in the past bought while still in the base as a method to catch the
breakout? I know others here have been occasionally doing so (though NOT
canslim). I think the windows of ALL trades can only get smaller now with
each passing year. Related to this is the increasing amount of WON news
traders I see on sites such as clearstation. Lately I've seen," mentioned in
IBD today, going for short term profit". These are by no means institutional
traders but it is an interesting phenomena.

My plan lately has been to wait for stocks with a VERY quiet handle and buy
into a lengthy base.
Problem of course is it's hard to find them as news has driven every little
spike on my list making quick breakouts with equally quick retreats.

- -Bill


- ----- Original Message -----
From: "Ian" <ianstm@shaw.ca>
To: <canslim@lists.xmission.com>
Sent: Tuesday, March 26, 2002 10:11 PM
Subject: Re: [CANSLIM] BRLI


> Bill:
>
> One of the most beneficial artifacts of buying microcaps is also what
makes
> them very difficult:
>
> 1. If you catch the trigger point precisely, and the stock 'behaves', you
> almost never have to worry about near-term sell rules, as the price will
> explode past the pivot point, and never revisit it (see NBSC at $6 as a
> recent example, but ALL of my big winners have the same characteristic -
it
> is what encourages me to pyramid to my positions).
>
> 2. It is often extremely dificult to catch trigger points precisely. You
> really do need to be watching when it happens, and pull the trigger very
> quickly and decisively. You often only have a 5-minute window (or less) to
> get within the 5% trigger point.
>
> The liquidity (or lack thereof) in these cases acts as a very strong
barrier
> to deep pullbacks You get to be comofrtably in the green from the onset,
and
> can happily hold through 10-15% swings that never revisit the trigger
point.
> The key, as always is volume. You need to be very aware of distribution.
>
> Cheers,
>
> Ian
>
>
>
>
> ----- Original Message -----
> From: Bill Triffet <btriffet@earthlink.net>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, March 26, 2002 5:00 PM
> Subject: Re: [CANSLIM] BRLI
>
>
> > Ian,
> >
> >
> >
> > > Actually, if you just go through the letters in CANSLIM, there is
> nothing
> > in
> > > them about price or volume :)
> >
> > That's why I included the recommendation about HTMMIS as it does cover
> price
> > and volume - a lot. I actualy should have mentioned the 24 Lessons book.
> The
> > old
> > WON book is really dated now.
> >
> > > Because the low price stocks tend to trade at much lower valuations,
> they
> > > are MUCH more resistant to getting dragged down with 'M", so I can
> > > underweight it - but you have to be very careful about only buying
> strong
> > > sectors.
> >
> > That brings up an excellent point. In the current market say 2000 to now
> > (g), the larger caps have sucked ( at least the ones I picked). Tom here
> can
> > attest to the strength of micros over the past couple years. I have
> watched
> > (and got taken out) on more than a few IBD perfect (so I perceive)
> breakouts
> > this year and the last.
> >
> > Which brings me to my point. If you go through HTMMIS you see WON
doesn't
> > put a lot of faith in cyclicals, banks, services, etc... The talk was
> always
> > "look for the high growth flyers, ready to explode..." (so I exagerated
it
> a
> > bit). This year we've been seeing retail, financials, services, even
golk
> > etc... being talked about in IBD and this group as candidates. I think
> this
> > addresses your comment below about the current crop. I also think IBD
has
> > adopted a bit of a shorter trading stratigy because in the book I recall
> the
> > metion of cyclicals falling out of favor when the new bull starts up.
> >
> > >
> > > IMHO, most current IBD CANSLIM stocks are grossly negligent in their
> > > complete dismissal of the original 'S' criteria.  Microcaps can kick
you
> > in
> > > the back of the head telling you that 'S' is about to propel them
> upwards.
> > > Look at the volume on NBSC from Feb 13 onwards. The increase from its
> > > week-earlier ADV is an order of magnitude. When the stock is cheap,
> > hitting
> > > new highs, growing with strong EPS and a sound outlook ... and that
kind
> > of
> > > 'S' picture suddenly emerges, the stock has nowhere to go but up.
> > >
> >
> > Bottom line is if true canslim is not working it's probubly the market
to
> > blame. If microcaps are working, I say right on but be aware of the
> > differences. I for one am starting to look more into micros - but with a
> > very cautious eye.
> >
> > But who am I to say... I've been in cash for several weeks now. (g)
> >
> > -Bill
> >
> >
> >
> > -
> > -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.


- -
- -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.