Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] USLB
Date: Wed, 1 May 2002 21:36:51 -0500
Previous Article (by Date): [CANSLIM] Commonly used references on the list "Katherine Malm"
Top of Thread: Re: [CANSLIM] USLB "Parnelli"
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Hi Parnelli,
The best way to identify pivot points is to practice, practice, practice =
reading charts. Any charting tool that shows price/volume action will =
allow you to identify the technical pattern and "ideal" entry point.
A good place to start is at the IBD site itself:
http://www.investors.com/learn/b09.asp
You can chart for free at www.bigcharts.com, www.stockcharts.com etc.
There are services that will identify the pivot points, but they charge =
for the convenience.
Katherine
----- Original Message -----=20
From: Parnelli=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 8:53 PM
Subject: Re: [CANSLIM] USLB
You're definitely right Katherine about experience being the best =
teacher. I have two stupid questions (intended to get me up to speed so =
I can contribute to the board), what is WON and is there a tool that can =
help me find the pivot point? I really do appreciate your help!!! =
- -Parnelli
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 9:46 PM
Subject: Re: [CANSLIM] USLB
Youch....well, you've probably learned the second most important =
rule in CANSLIM.....don't buy extended stocks. If you purchased at =
$16.25, support was a long way away. The pivot on this one was $11.55. =
The gap on the open 3/25 meant that your best entry would have been =
around $12.04. That means it was (16.25-12.04)/12.04 =3D 35% extended on =
purchase. You can see why this is a critical technical guideline. WON =
says about 40% of stocks will pullback to their pivot before moving on. =
If you find a good stock but miss the valid breakout, WAIT and see if =
you can get a second chance entry or wait until it consolidates again =
and breaks out before jumping in. Buying an extended stock is a little =
like bungee jumping without a rope. One of the most critical (and most =
difficult) skills required in CANSLIM investing is patience.
See a marked chart at =
http://WallStreet-LLC.com/canslim/USLB050102.jpg
Oh yes...welcome to the list!
Katherine
PS...one of the best ways to really "get" a CANSLIM rule is to =
experience it first hand. Been there, done that, that's why I remember =
it myself!
----- Original Message -----=20
From: Parnelli=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 7:53 PM
Subject: Re: [CANSLIM] USLB
Thanks Katherine...unfortunately I bought it a week before =
earnings at $16.25 and then it started tanking. Then when their numbers =
came out (I thought they were excellent), but apparently I was the only =
one who felt that way-ouch! Oh well, all part of the learning curve. I =
still think it looks like a good company and I've considered averaging =
down, however, O'neil is not a big fan of that move. Obviously, I =
should have kept my loss from exceeding 8%...but I'm learning. Thanks, =
Parnelli
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 8:44 PM
Subject: Re: [CANSLIM] USLB
Hi Parnelli,
When did you buy? If you bought on the breakout 3/25 then you =
shouldn't have been "slammed" as the big downward action 4/23-4/25 is =
most likely market driven. A good buy would have allowed you to weather =
the action and see if it held above the pivot and the 50dMA, which it's =
done, showing very good support 4/29 with high volume and an upward =
tail.
Katherine
----- Original Message -----=20
From: Parnelli=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 7:39 PM
Subject: [CANSLIM] USLB
Hi Board,
I'm a new "canslimer" and thought I was an IBD guru until I =
bought USLB and it slammed me. I know I missed on the "M", but for the =
life of me I can't see any other problems. If any experienced folks =
follow this stock and can give me their two cents worth I'd be very =
appreciative. Many thanks, Parnelli =20
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<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV>Hi Parnelli,</DIV>
<DIV> </DIV>
<DIV>The best way to identify pivot points is to practice, practice, =
practice=20
reading charts. Any charting tool that shows price/volume action will =
allow you=20
to identify the technical pattern and "ideal" entry point.</DIV>
<DIV> </DIV>
<DIV>A good place to start is at the IBD site itself:</DIV>
<DIV><A=20
href=3D"http://www.investors.com/learn/b09.asp">http://www.investors.com/=
learn/b09.asp</A></DIV>
<DIV> </DIV>
<DIV>You can chart for free at <A=20
href=3D"http://www.bigcharts.com">www.bigcharts.com</A>, <A=20
href=3D"http://www.stockcharts.com">www.stockcharts.com</A> etc.</DI=
V>
<DIV> </DIV>
<DIV>There are services that will identify the pivot points, but they =
charge for=20
the convenience.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dpgone@fuse.net href=3D"mailto:pgone@fuse.net">Parnelli</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>Sent:</B> Wednesday, May 01, 2002 =
8:53=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>You're definitely right Katherine about =
experience=20
being the best teacher. I have two stupid questions (intended to =
get me=20
up to speed so I can contribute to the board), what is WON and is =
there a tool=20
that can help me find the pivot point? I really do appreciate =
your=20
help!!! -Parnelli</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 01, 2002 =
9:46=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV>Youch....well, you've probably learned the second most =
important rule=20
in CANSLIM.....<EM>don't buy extended stocks</EM>. If you purchased =
at=20
$16.25, support was a long way away. The pivot on this one was =
$11.55. The=20
gap on the open 3/25 meant that your best entry would have been =
around=20
$12.04. That means it was (16.25-12.04)/12.04 =3D <EM><STRONG>35%=20
extended</STRONG></EM> on purchase. You can see why this is a =
critical=20
technical guideline. WON says about 40% of stocks will pullback to =
their=20
pivot before moving on. If you find a good stock but miss the valid=20
breakout, WAIT and see if you can get a second chance entry or wait =
until it=20
consolidates again and breaks out before jumping in. Buying an =
extended=20
stock is a little like bungee jumping without a rope. One of the =
most=20
critical (and most difficult) skills required in CANSLIM investing =
is=20
patience.</DIV>
<DIV> </DIV>
<DIV>See a marked chart at <A=20
=
href=3D"http://WallStreet-LLC.com/canslim/USLB050102.jpg">http://WallStre=
et-LLC.com/canslim/USLB050102.jpg</A></DIV>
<DIV> </DIV>
<DIV>Oh yes...welcome to the list!</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV>PS...one of the best ways to really "get" =
a CANSLIM rule is=20
to experience it first hand. Been there, done that, that's why I =
remember it=20
myself!</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dpgone@fuse.net =
href=3D"mailto:pgone@fuse.net">Parnelli</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 01, =
2002 7:53=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Thanks Katherine...unfortunately I bought it a =
week=20
before earnings at $16.25 and then it started tanking. Then =
when=20
their numbers came out (I thought they were excellent), but =
apparently I=20
was the only one who felt that way-ouch! Oh well, all part =
of the=20
learning curve. I still think it looks like a good company =
and I've=20
considered averaging down, however, O'neil is not a big fan of =
that=20
move. Obviously, I should have kept my loss from exceeding =
8%...but=20
I'm learning. Thanks, Parnelli</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 01, =
2002 8:44=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV>Hi Parnelli,</DIV>
<DIV> </DIV>
<DIV>When did you buy? If you bought on the breakout 3/25 then =
you=20
shouldn't have been "slammed" as the big downward action=20
4/23-4/25 is most likely market driven. A good buy would =
have=20
allowed you to weather the action and see if it held above the =
pivot and=20
the 50dMA, which it's done, showing very good support 4/29 with =
high=20
volume and an upward tail.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dpgone@fuse.net =
href=3D"mailto:pgone@fuse.net">Parnelli</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May =
01, 2002=20
7:39 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Hi Board,</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>I'm a new "canslimer" and thought I was an =
IBD guru=20
until I bought USLB and it slammed me. I know I missed =
on the=20
"M", but for the life of me I can't see any other =
problems. If=20
any experienced folks follow this stock and can give me their =
two=20
cents worth I'd be very appreciative. Many thanks,=20
=
Parnelli </FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></=
BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Previous Article (by Date): [CANSLIM] Commonly used references on the list "Katherine Malm"
Top of Thread: Re: [CANSLIM] USLB "Parnelli"
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