Go to Jeff Salisbury LWGate Home Page.From: Eric Jaenike <ericjaenike@yahoo.com>
Subject: Re: [CANSLIM] Market Rally
Date: Thu, 11 Apr 2002 06:38:40 -0700 (PDT)
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- --0-856235601-1018532320=:23792 Content-Type: text/plain; charset=us-ascii Agree that downturn materialized. As for requirement of undercutting low, I believe that applies to very early in the nascent rally only. Once a rally has moved the indices away from the low, the 3-5 day distribution rule takes effect. If you waited for an undercut of the previous low after a meaningful rally to call that rally dead, you'd be extremely late (assuming the rollover and downtrend even bought the indices below that previous low). Eric Katherine Malm <kmalm@earthlink.net> wrote: Hi Rob, I just read the Ask Bill column and agree the wording is confusing. Here's what I see for recent action on the NASDAQ: Recent low set 2/22/02, close 1696.6By definition, a follow thru day (FTD) on 3/4/02, close 1790Uptrend stalled and turned around 3/8/02, close 1908While a new bull doesn't start without a FTD, a FTD doesn't necessarily mean we are in a sustained rally.Too many distribution days in a row makes it official, whatever chance there was of a rally on the NASDAQ is done for-- Heavy distribution days on: 3/20/02, 4/2/02, 4/3/02, 4/9/02 Unless things change quickly, the downtrend remains intact. Katherine----- Original Message ----- From: Rob Miller To: canslim@lists.xmission.com Sent: Thursday, April 11, 2002 8:02 AMSubject: [CANSLIM] Market Rally I'm confused. I noticed that on investors.com today, WON (or whoever answers these questions) states that there is no rally at this time because we haven't had a FTD off recent lows. My understanding is that a rally is intact as long as the first day of the rally attempt is not undercut. Therefore, the rally beginning in February is still in force. You could argue that the rally failed because so few Canslim stocks were breaking out, but I don't recall that being a requirement to call the rally a failure, only a measure of the rally's strength. IBD called the last follow through day and I don't remember them calling the rally a failure yet. I don't read IBD every day so I may be missing something, but are they always this inconsistent. The columns on the front page have also been questionable lately. Rob - --------------------------------- Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax - --0-856235601-1018532320=:23792 Content-Type: text/html; charset=us-ascii <P> Agree that downturn materialized. As for requirement of undercutting low, I believe that applies to very early in the nascent rally only. Once a rally has moved the indices away from the low, the 3-5 day distribution rule takes effect. If you waited for an undercut of the previous low after a meaningful rally to call that rally dead, you'd be extremely late (assuming the rollover and downtrend even bought the indices below that previous low). <P>Eric <P> <B><I>Katherine Malm <kmalm@earthlink.net></I></B> wrote: <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid"> <META content="MSHTML 6.00.2600.0" name=GENERATOR> <STYLE></STYLE> <DIV>Hi Rob,</DIV> <DIV> </DIV> <DIV>I just read the Ask Bill column and agree the wording is confusing. Here's what I see for recent action on the NASDAQ:</DIV> <DIV> </DIV> <DIV>Recent low set 2/22/02, close 1696.6</DIV> <DIV>By definition, a follow thru day (FTD) on 3/4/02, close 1790</DIV> <DIV>Uptrend stalled and turned around 3/8/02, close 1908</DIV> <DIV>While a new bull doesn't start without a FTD, a FTD doesn't necessarily mean we are in a sustained rally.</DIV> <DIV>Too many distribution days in a row makes it official, whatever chance there was of a rally on the NASDAQ is done for--</DIV> <DIV> </DIV> <DIV>Heavy distribution days on: 3/20/02, 4/2/02, 4/3/02, 4/9/02</DIV> <DIV> </DIV> <DIV>Unless things change quickly, the downtrend remains intact.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE dir=ltr style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style="FONT: 10pt arial">----- Original Message ----- </DIV> <DIV style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B> <A title=rmiller2@carolina.rr.com href="mailto:rmiller2@carolina.rr.com">Rob Miller</A> </DIV> <DIV style="FONT: 10pt arial"><B>To:</B> <A title=canslim@lists.xmission.com href="mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A> </DIV> <DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, April 11, 2002 8:02 AM</DIV> <DIV style="FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Market Rally</DIV> <DIV><BR></DIV> <DIV><FONT face=Arial size=2>I'm confused. I noticed that on investors.com today, WON (or whoever answers these questions) states that there is no rally at this time because we haven't had a FTD off recent lows. My understanding is that a rally is intact as long as the first day of the rally attempt is not undercut. Therefore, the rally beginning in February is still in force. You could argue that the rally failed because so few Canslim stocks were breaking out, but I don't recall that being a requirement to call the rally a failure, only a measure of the rally's strength. IBD called the last follow through day and I don't remember them calling the rally a failure yet. I don't read IBD every day so I may be missing something, but are they always this inconsistent. The columns on the front page have also been questionable lately. </FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV><FONT face=Arial size=2>Rob</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE><p><br><hr size=1><b>Do You Yahoo!?</b><br> <a href="$rd_url/welcome/?http://taxes.yahoo.com/">Yahoo! Tax Center</a> - online filing with TurboTax - --0-856235601-1018532320=:23792-- - - - -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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