Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] HANDLE%
Date: Thu, 18 Apr 2002 21:56:15 -0500
Next Article (by Subject): Re: [CANSLIM] List posting....... "William King"
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This is a multi-part message in MIME format. - ------=_NextPart_000_0099_01C1E723.DCF37960 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Arthur,=20 I don't know that I've ever read anything about volatility vs. handle = formation but I do know that WON talks about the handle in relation to = the base itself. You want the handle to drop only 12-15% from the right = side of the base under normal conditions and no more than 20% during a = bear market. You also want the handle to form in the upper half of the = base. This shows the ability of the stock to "hang tough" while shaking = out the last of the weak hands. I don't think that you can conclude that = a handle that drops more than the recommended amount just because the = stock has a higher beta is "stronger."=20 Katherine ----- Original Message -----=20 From: DBell 0467=20 To: canslim@lists.xmission.com=20 Cc: DBell 0467=20 Sent: Thursday, April 18, 2002 11:45 AM Subject: HANDLE% I ASKED WON UNDER GENERAL QUESTIONS IF VOLITILITY HAD ANY BEARING ON = THE HANDLE %. I DIDN`T RECEIVE AN ANSWER. MAYBE THE GROUP CAN = ENLIGHTEN ME. CONSIDER 2 STOCKS THAT DROP FROM 40 TO 30 AND RECOVER TO 38 AND ONE = HAS A DAILY AVERAGE RANGE OF 1% AND DROPS 10% OVER 10 DAYS IN ITS HANDLE = WHILE THE OTHER DROPS 25% OVER THE SAME 10 DAYS BUT SPORTS A 7% AVERAGE = DAILY RANGE. I FIGURE THAT, APPLES TO APPLES, THE 7% STOCK SHOULD HAVE DROPPED 70% = AND WHILE IT DROPPED ONLY 25% WAS CONSIDERABLY STRONGER THAN THE STOCKED = THAT DROPPED WITHIN THE ACCEPTABLE HANDLE RANGE. ARTHUR BELANGER - ------=_NextPart_000_0099_01C1E723.DCF37960 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Arthur, </DIV> <DIV> </DIV> <DIV>I don't know that I've ever read anything = about volatility vs.=20 handle formation but I do know that WON talks about the handle in = relation to=20 the <EM>base itself</EM>. You want the handle to drop only = 12-15%=20 from the right side of the base under normal conditions and no more than = 20%=20 during a bear market. You also want the handle to form in the upper half = of the=20 base. This shows the ability of the stock to "hang tough" while shaking = out the=20 last of the weak hands. I don't think that you can conclude that a = handle that=20 drops more than the recommended amount just because the stock has a = higher beta=20 is "stronger." </DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3D"DBell 0467" href=3D"mailto:DBell 0467">DBell 0467</A> = </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Cc:</B> <A title=3D"DBell 0467"=20 href=3D"mailto:DBell 0467">DBell 0467</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, April 18, 2002 = 11:45=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> HANDLE%</DIV> <DIV><BR></DIV><BR>I ASKED WON UNDER GENERAL QUESTIONS IF VOLITILITY = HAD ANY=20 BEARING ON THE HANDLE %. I DIDN`T RECEIVE AN ANSWER. MAYBE = THE=20 GROUP CAN ENLIGHTEN ME.<BR><BR>CONSIDER 2 STOCKS THAT DROP FROM 40 TO = 30 AND=20 RECOVER TO 38 AND ONE HAS A DAILY AVERAGE RANGE OF 1% AND DROPS 10% = OVER 10=20 DAYS IN ITS HANDLE WHILE THE OTHER DROPS 25% OVER THE SAME 10 DAYS BUT = SPORTS=20 A 7% AVERAGE DAILY RANGE.<BR><BR>I FIGURE THAT, APPLES TO APPLES, THE = 7% STOCK=20 SHOULD HAVE DROPPED 70% AND WHILE IT DROPPED ONLY 25% WAS CONSIDERABLY = STRONGER THAN THE STOCKED THAT DROPPED WITHIN THE ACCEPTABLE HANDLE=20 RANGE.<BR><BR>ARTHUR BELANGER<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0099_01C1E723.DCF37960-- - - - -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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