Re: [CANSLIM] M for Market

From: "Bill Triffet" <btriffet@earthlink.net>
Subject: Re: [CANSLIM] M for Market
Date: Tue, 9 Apr 2002 11:57:36 -0700

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In addition I would add that looking back there were several types of
opportunities to take advantage of that I neglected:

IPO's - I stayed away from them...including KKD.

Cyclicals - Home Builders to be exact. I spent to much effort looking for
"real growth" oriented companies as HTMMIS mentions they are the first to
launch when the new bull takes off.

Not taking the money off the table quickly when the stock was mentioned in
IBD or after seeing two or more days of downward tails. I had several quick
10%-15% gains that I let fall back to zero due to these mistakes.

Buying in the base. Yes, I know this is not real canslim but I'm sure many
have survived this market buying in sound bases to avoid the whipsaws. Of
course these stocks must have strong fundamentals.

- -Bill

- ----- Original Message -----
From: "Hill, Ernie" <Ernie.Hill@ElPaso.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, April 09, 2002 11:33 AM
Subject: RE: [CANSLIM] M for Market


> Dave you are right, but!
>
> Part of my recent research was to do just that, beat the market with those
> very few companies that buck the trend. Here is the rub, at least what I
> found with the samplings that I was working with. Even when you can get a
> good entry point you can easily get whipsawed out of your position when
the
> market takes one of it's quick drops. The 8% stop loss rule is applicable
to
> CANSLIM when M is operating in uptrend mode.
>
> Often the very stocks that buck M while it is on its way down are very
> volatile because of the condition of M. Two bad days in a row for M and
you
> could easily be stopped out of your position only to see the market
> stabilize and then see your prize stock take off without you.
>
> Unless you are a champion stock picker the odds are really stacked against
> you. I of course am not that smart and too hardheaded to learn from
others,
> so instead I paid for my education. The main thing I learned from my
> research of my investments over the past year and other stocks with
CANSLIM
> qualities during the same timeframe, is this; the stocks that made money
did
> so while the market was moving up, and the ones that lost money did so
while
> the market was moving down.
>
> Granted some of these stocks when up while the market was resting or
> dropping only a little, but invariably the market would have a one or two
> day sharp drop and I would be stopped out.
>
> That's when I became very focused on timing the short term (one week to
two
> month) moves of the market. I have found that you can beat the longer term
> trend of the market with top quality stocks if you only hold them for a
> short period of time while the market is moving up.
>
> Of course timing the short term moves of the market is no easy task
either.
> Bottom line its easy to look at charts of stocks that have beaten the
market
> over the past two years, its another thing entirely to have been able to
> enter those stocks and not have gotten stopped out unless you are willing
to
> use wider stop loss points, which can become very expensive when you are
> wrong.
>
> Caveat emptor.



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