Re: [CANSLIM] Today's IBD "Big Picture" comments...

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Today's IBD "Big Picture" comments...
Date: Thu, 02 May 2002 08:05:40 -0700
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Winston:

Managing for the overnight haircut, is IMHO, the single most difficult part
of this game. Recently, in any case where I am not 95% certain of earnings
and outlook, I have taken to selling positions before earnings reports as
one way to manage it. However, that can work against me too (see what FSTW
did the day it opened after its most recent report for an example).

In the pharmaceutical/biotech industries, news announcements can do the same
thing, so I shy away from them when there is known news pending. Apart from
that, I'm not sure how to deal with it. But in my case, taking small gains
would be disastrous to my long term results, and defeat the purpose of all
my efforts - so I cannot use it as part of my strategy.

Would you mind elaborating on each of your recent overnight haircuts -
tickers, price and reason for the drop? It is a subject I would like to see
some CANSLIM discussion on, as I'm sure it has happened to all of us with
the high-beta stocks that we follow.

Ian


- ----- Original Message -----
From: Winston Little <wlittle1@peoplepc.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, May 02, 2002 6:12 AM
Subject: Re: [CANSLIM] Today's IBD "Big Picture" comments...


> Tom:
> In my trading during the past several months, I have been through a series
> of issues that appeared to fit the CANSLIM criteria, then were hit with
> adverse overnight or early morning news. Result was a drop of 30 to 40% in
> price in pre-opening trade (no opportunity to contain loss to under 7%),
and
> no significant recovery afterwards. CACI is a recent  example.
> My other gainers were of smaller magnitude. Since it takes many more small
> gains to equal one big loser, net result was not good for me. Thus, I
> concluded that taking smaller gains QUICKLY and moving on is more reliable
> in "this market".
> What I mean by "this market" is that Monday's hero is often Thursday's
goat.
>
>
> ----- Original Message -----
> From: "Tom Worley" <stkguru@bellsouth.net>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, May 01, 2002 7:19 PM
> Subject: Re: [CANSLIM] Today's IBD "Big Picture" comments...
>
>
> > I disagree, Winston
> >
> > I did very well in 2001 applying my version of CANSLIM, and I doubt
anyone
> > would call that a bull market.
> >
> > I did it with buy and hold throughout the year, I doubt I sold any
> position
> > less than a month after purchase, some were held the entire year.
> >
> > Tom Worley
> > stkguru@bellsouth.net
> > AIM: TexWorley
> > ----- Original Message -----
> > From: "Winston Little" <wlittle1@peoplepc.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Wednesday, May 01, 2002 12:44 PM
> > Subject: Re: [CANSLIM] Today's IBD "Big Picture" comments...
> >
> >
> > My observations:
> > - true CANSLIM works well in a "bull market'.
> > - ALL markets have issues which are rising and some which are falling.
(In
> > bull market more rise than fall and the life of a rise is very long).
> > - we are currently in a rotational market, with the life of a trend
> varying
> > from one or two days to at most one month
> > - in this era only the fast survive, a good example is that of OVER
during
> > the past week.
> > The quickest way to lose money is buy and hold . It is similar to
grabbing
> a
> > handful of smoke and hoping to keep it.
> >
> >
> > ----- Original Message -----
> > From: "Bill Triffet" <btriffet@earthlink.net>
> > To: "canslim" <canslim@lists.xmission.com>
> > Sent: Wednesday, May 01, 2002 12:12 PM
> > Subject: [CANSLIM] Today's IBD "Big Picture" comments...
> >
> >
> > > Well friends, it seems that today's IBD confirms what I've thought
about
> > the
> > > M in canslim - It's not necessarily based on the readings of the three
> > major
> > > market indexes ( a big departure from HTMMIS).
> > >
> > > I'm paraphrasing the last three paragraphs of "The Big Picture"(there
> are
> > > stiff copyright disclaimers at IBD):
> > >
> > > It will take a few days to see if the rotation BACK into the Dow, Naz,

> and
> > > S&P is valid. There should be a big move in heavier volume by the end
of
> > the
> > > week to confirm it.
> > >
> > > It goes on to say it's a "nonissue" for growth investors since small
and
> > > mid-cap stocks along with medical, consumer and defense are doing well
> > > despite the big averages. If they hold up, it says, the major averages
> > could
> > > improve.
> > >
> > > Also mentions "careful trading" with tight loss cutting is key.
> > >
> > > My point? IMHO, IBD is marketed for many types of investors. Pure
> canslim
> > > (if there is such a thing) is just one of them.
> > >
> > > I think perhaps it's time for me to look at growth investing with a
> > canslim
> > > approach. I'm starting to see several here have done this to great
> success
> > > (though with very close watching). Including things such as a lower
but
> > > advancing RS as opposed to just a high rating and not be afraid to
jump
> > into
> > > stocks in an upwards trending sector though the market is flat or down
> IF
> > > they have good fundies.
> > >
> > > Several times this and last year I saw stocks and groups moving ahead
> but
> > > stayed out due to the major indexes downward trend. Comments?
> > >
> > > Btw, for Fred, it suggests there's heavy distribution out of gold and
> > > precious metals by investors.
> > >
> > > Bill Triffet
> > >
> > >
> > >
> > >
> > >
> > > -
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> >
> >
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>
>
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