Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] M for Market
Date: Thu, 11 Apr 2002 00:58:32 -0400
Previous Article (by Author): Re: [CANSLIM] Breakouts "Tom Worley"
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I don't know much about timing of the markets, never did well at that. So just focused on trying to buy stocks with solid fundies, and looking like they deserved higher valuations by CANSLIM measures. After four days on the road, mostly out of touch with what the US and global markets were doing and with total neglect of my investments, aside from the little I was able to glean from CNN (they never showed a single quote on any stock I owned, guess they were all too insignificant), I was understandably pleased tonight to check where I stood thru Wednesday's close from last Friday's close: IRA - up 0.9% 401K - up 0.4% (big winner was my new investment in the small cap fund, up 2%, but the other three funds were up as well) margin acct - up 9.5% (haven't yet had the time to figure out why) I don't think this makes me a champion stock picker, just one not focused on the short term, but rather the long term with some intermediate term considerations. Seems like I need to apply less obsession, and more benign neglect, to my investment practices. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message ----- From: "Hill, Ernie" <Ernie.Hill@ElPaso.com> To: <canslim@lists.xmission.com> Sent: Tuesday, April 09, 2002 2:33 PM 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. E E -----Original Message----- From: Davellil5@aol.com [mailto:Davellil5@aol.com] Sent: Tuesday, April 09, 2002 12:14 PM To: canslim@lists.xmission.com Subject: [CANSLIM] M for Market Recent email in our group indicates that one should never, never, buy a stock in a dead market. This rule is based on the unstated premise that no stock can ever buck the market -- or that there's no way to identify a stock that has a good chance of bucking the market. So, in a dead market, one should always stay in cash. Yet we've all seen the charts of hundreds of stocks that could, and did, buck the spooky market of the past two years. Our problem, friends, is how to spot those stocks before they rise out of reach, not to moan about the lousy market. What should we be looking for? One type of Company whose stock can buck this dead market -- I've observed - -- is a Company in a niche business. Usually, this kind of Company doesn't even belong in its own industry group -- so it may buck its group as well as the market as a whole. I look for those. Purpose of this email is to pick y'all's brains. What other types of Companies have any of you noticed with a propensity for bucking a dead market. This market may stay dead for awhile yet. Let's pool, our brains on what to look for. I hope I get avalanched on this one Regards to all, Dave - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ****************************************************************** This email and any files transmitted with it from the ElPaso Corporation are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. ****************************************************************** - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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