Re: [CANSLIM] Canslim Evaluation Tool

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Canslim Evaluation Tool
Date: Wed, 3 Apr 2002 15:40:15 EST

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Tom:

     I recalled that recently I downloaded an Ask WON from IBD that concerned 
the relationship of the 50 and 200 MAs'.  I hope these columns I cite save 
you some time looking for them:

     "Ask Bill O'Neil, 3/31/02, Re. 200 and 50 MA-Slope as Signals-  Should 
the 50- and 200-day moving average lines be slanting upward before 
considering a stock breaking out?              Not necessarily. In some 
cases, when a base is predominantly horizontal in shape, the moving average 
lines can be more or less flat. But rather than looking at the slope of the 
moving average lines, you should check if the stock is above its 50-day[on 
the BreakOut]. If it isn't, chances are there is something wrong with the 
breakout. Also, you'll sometimes see the 50-day moving average cross above 
the 200-day line at about the same time of the breakout, although this 
crossover is not by itself a signal to buy. Overall, the overriding factor in 
studying any breakout is the health of the base pattern. [Remember]Moving 
averages are just a secondary indicator. 

Ask Bill O'Neil Archives, Friday, March 29, 2002, Gapping < it's 50&200 in 
one fell swoop-trashing a valid long base-- "A recent Big Picture column said 
a stock "gapped below its 50- and 200-day moving averages, trashing an 
eight-month base." Does gapping down destroy an otherwise good base? Does 
breaking the moving averages trash the base? " - Submitted from W. Lafayette, 
Ind.    A stock gapping below its 50- and 200-day moving averages in one fell 
swoop is an extreme sign of weakness. It doesn't necessarily destroy a base. 
But in the context of Biomet, the stock in question, the action knocked the 
stock to its lowest point since September, marring its long consolidation. "

jans


In a message dated 4/3/2002 5:03:41 AM Eastern Standard Time, 
stkguru@bellsouth.net writes:

<< I skimmed thru HTMMIS this morning without finding the references to moving
 averages I was looking for. Will keep looking for this, but I know that when
 WON's staffers trained me to read charts, these two averages were heavily
 emphasized. I also note that at least the 50 DMA is included in every WON
 chart. >>

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