RE: [CANSLIM] Bear Rally?

From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: RE: [CANSLIM] Bear Rally?
Date: Sun, 14 Apr 2002 09:55:15 -0400

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Jans:

Good thinking and input for the neighborhood. Can you say "CANSLICM?" 

Not long ago we debated herein the capitalization definitions.  Do you
suppose their (IBD's) definitions in the IC (<=1bb is small; >=5bb is
large; mid in between) conform to the S&P 600 (Small), 400 (mid), and
500 (big)?  

Duke

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Spencer48@aol.com
Sent: Sunday, April 14, 2002 1:15 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Bear Rally?


Katherine and Duke:

     In today's Investor's Corner (4/15) the column focuses on the fact
that 
small caps are doing well while the big caps are lagging.  This approach
is 
interesting.  Apparently one should look at:  The Mkts ->The Industry ->
The 
Capitalization (whether the stock is a big cap or a small cap makes a 
difference, according to the article, regarding the probability that the

stock will take off.  If small caps are currently  being favored than 
investing in big caps is less likely to garner a winner.)           
- -> (and finally) The Stock.

     So it looks as if one should go through the above checklist to find
a 
stock that will be a winner.  (Apropos, I wonder if anyone has compared
the 
industry [I know CANSLIM uses a Strong Industry as a necessary
forerunner of 
a strong stock] with the favored capitalization at the time.  

     For instance, if XYZ industry is the industry that CANSLIM/WON
favors at 
the present, would the capitalization  of the stock that is in that
industry 
make a significant difference as to its return, ie. do the statistics
confirm 
that not only the industry, but also the capitalization of the stock in
that 
industry, is a big factor in the movement up of that stock? ) 

jans



In a message dated 4/13/2002 12:50:16 PM Eastern Daylight Time, 
kmalm@earthlink.net writes:

<< MessageHi Duke,
 
 I read the article and thought the same thing. I think the real issue
is 
that when all stocks are not in a Bull Market, you can't talk
meaningfully 
about "THE Market" any longer. For example, the last couple of years of
"the 
great Bull", the Dow ran sideways while the NASDAQ screamed. The article

today only reinforces that notion. That is, some stocks are going up,
others 
are going down, others are moving sideways. That's always the case, but
when 
equities aren't the absolute best place to put your money for "sure"
gains, 
the marginal dollars will flow to other investment classes and the rest
of 
the market will ebb and flow. If nothing else, it just reminds us as
CANSLIM 
investors that we have to pick only the best candidates and follow sound

buy/sell rules. I don't think there's going to be a clear direction for
"the 
Market" as a whole for many years. We're going to have to read the
health of 
the CANSLIM market (i.e. CANSLIM-quality stocks) and then go for
strength 
within that.
 
 Katherine
 
 PS.... The term "rally" is used in many contexts, even within the IBD
and 
Investors.com. Is it an upswing? Is it action after a followthru day? Is
it a 
Bull? How persistent does an upswing need to be before it's no longer 
considered "a rally"? Rally relative to what? relative to when?
Geez....very 
confusing terminology. >>

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