Re: [CANSLIM] Canslim Evaluation Tool

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Canslim Evaluation Tool
Date: Wed, 3 Apr 2002 19:45:14 -0500

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Thanks, jans, I really appreciate anything that saves me time these days.
Finished up a project at work tonight in a total of about 10 hours that was
expected to take over 40 hours, so decided to celebrate by leaving work
"early". Now, if only Naz could be so kind to me, already lost about 3% in
my VR Fund for Q2, bad way to start even if my IRA and Margin acct are
holding their own. And LB screaming 13% past my selling point yesterday
"almost" doesn't affect me, who cares if I left that profit on the table??

These articles affirm the general training I received in reading charts, the
50 and 200 DMA do matter, but it's more the shape of them and the direction
of the trend than where they are with respect to price. In context, you want
a rising trend however you measure it.

Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, April 03, 2002 3:40 PM
Subject: Re: [CANSLIM] Canslim Evaluation Tool


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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