Re: [CANSLIM] DFXI

From: Spencer48@aol.com
Subject: Re: [CANSLIM] DFXI
Date: Sun, 31 Mar 2002 16:18:58 EST

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Katherine:

    Sorry about my 1st paragraph babbling; you're really very diplomatic, 
Katherine, not to mention it:  Have another Starbuck's on me!  

     But honestly-DG, last night, displayed DFXI's chart as having an 
identical price rise and volume spike on both Wednesday and Thursday.
   
     Now that I've looked at the new and updated DFXI, here is what I think:  
Whoever first mentioned that DFXI looks like a breakout is (in my opinion) 
right.  Now, as you suggest, whether the breakout will fail or not is another 
question.  However, notice that it fell from its high to close at the left 
lip pivot-high.  Someone is selling into the strength.  It could be normal 
profit taking-or, this seems reasonable, institutions could be selling to 
those who have to buy due to the high short interest (ie. the insititution 
are selling into strength).  
     Whether the DFXI bull (gap up on the breakout, and earnings are due out 
in about 2 weeks-which rise perhaps indicates that someone knows that 
earnings are going to be at least up to snuff); or the DFXI bear (the Market 
could put a monkey wrench into many stocks that are breaking out) will get 
the upper hand remains to be seen (at least from my perch).

jans 



In a message dated 3/30/2002 11:23:11 PM Eastern Standard Time, 
kmalm@earthlink.net writes:

<< Hmmm...DFXI was up nearly 8% on the day, finishing near the high...so I'd 
say it did well. Can't say what will happen, but you're right that if it 
doesn't follow through, it might be a suspect breakout. I never like to go 
for a stock with too many eyes on it and this one gets the "too many eyes 
award" in my book, but this seems to be a company with savvy. (Sure hope they 
can afford all those BowFlex ads that run every 23 minutes.) >>

- ---- Original Message ----- 
  From: Spencer48@aol.com 
  To: canslim@lists.xmission.com 
  Sent: Saturday, March 30, 2002 9:57 PM
  Subject: Re: [CANSLIM] DFXI

There is a high short-interest 
  in DFXI.  It did gap up (and in my opinion broke-out) on Wednesday.  

       However, the question now should be whether the breakout is going to 
  fail or not.  Without my going into how I feel the Market will behave, the 
  issue seems to be: Are the big institutions selling their DFXI into 
strength 
  (those who were short no doubt bought on the breakout, but the stock on 
  Thursday never really went anywhere even though volume was tremendous)?   
  According to WON (as I remember it) if the stock doesn't continue to go up 
  the next day after the breakout, the stock should most likely be sold.

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