Re: [CANSLIM] DFXI

From: "Tim Fisher" <Tim@orerockon.com>
Subject: Re: [CANSLIM] DFXI
Date: 1 Apr 2002 19:08:32 -0800

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Once again, 20 days to cover is considered "high" short interest by most.
Less than a trading week (5 days) is definitely NOT high short interest;
it's low to very low on my scale.

At 04:36 PM 3/31/2002 -0500, you wrote:
>Ian:
>
>      I just want to mention this for what it's worth:  A promo market letter
>(it wants me to subscribe. It's called the Erlanger Squeeze Play, published
>by Michael London) has as its strategy to buy stocks with powerful looking
>charts THAT also have a high short interest.  His belief is that a stock that
>is poised to rise will have a double impetus if it also has a high short
>interest (since when it does rise, the shorts will  buy back).
>
>      This strategem makes sense to me.  So, at least in my universe, the high
>short interest is a plus (considering that the chart also looks strong).
>However,  you make a point that I hadn't considered:  On DFXI's rise (from
>its nadir to the right lip) the volume was sub-50 day moving average.  Now, I
>don''t believe WON has said anything definite about the volume on the rise to
>the right lip.  Is it your experience that a rise to the right lip should be
>accompanied by rising volume?  If there is not concommitant high volume up
>the right side of the cup, then do you believe that MOST C&H's are likely to
>fail-even after it breaks-out-when volume up the right side (until you reach
>the handle) is lowish?
>
>      Does anyone else have experience concerning volume on the right side of
>the cup?
>
>jans

Tim Fisher
Ore-ROCK-On Rockhounding Web Site
Owner, Fisher Fisheries, Ltd.
mailto:tim@OreRockOn.com
WWW http://OreRockOn.com

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