Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] MWRK, microcaps, charts
Date: Sat, 4 May 2002 12:08:46 -0500
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Hi Jerry,
I use a combination of DGO and Vectorvest for all my mining and =
candidate selection. Between those 2 tools, I'm able to spot stocks well =
before they become well-known names and appear in the IBD. I don't use =
any of the free screeners available on the web because the results are =
too limiting. My own approach is to look at bare minimum requirements =
for forward growth rate, price, ADV, 50/200 day moving averages, A/D and =
RS. From there I sort and filter for the fundamental requirements, group =
strength, etc. My preference is to weight the values for each of these =
rather than eliminating candidates based on specific minimums. That =
means my "universe" of CANLSIM candidates runs about 700-800 at any one =
time. I use current technical strength to draw my eye, then sort based =
on the preponderance of evidence for all other things CANSLIM. I've =
found this approach to be the best for my personal style primarily =
because it allows me to keep a pulse on the health of the CANSLIM =
universe and sectors that are showing outperformance despite the overall =
market averages. The other reason that I like this approach is that I'm =
never in a position to introduce bias into the stocks I do or do not =
look at. I don't rely on lists from the internet, TV , the IBD, =
newsletters, friends, web sites, or message boards. If it doesn't show =
up in my universe, I don't look at it and vice versa.
So more to the point of the message thread, I "dip down" into microcap =
territory to get the pulse of the market, but I tend to keep my buying =
to stocks >=3D$10. That means I miss some of the early explosive action =
that Ian and Tom catch. But for me, the $10 minimum is a "sleep factor" =
selection criteria.
Katherine
----- Original Message -----=20
From: Jerry Weiss=20
To: canslim@lists.xmission.com=20
Sent: Saturday, May 04, 2002 11:01 AM
Subject: Re: [CANSLIM] MWRK, microcaps, charts
K:
I haven't been in the market very long, but I've been examining an =
awful lot of charts. I've seen the pattern you're describing [the =
sudden, rapid ascent from a long, short or almost non-existant base] =
occur in various stock charts over time, but my impression is that the =
phenomenon has snowballed "recently" -- perhaps over the last year or =
two. =20
The micro-caps and other stocks I've looked at come from internet =
"stock selectors," so I assume they are just "average." Would you mind =
sharing the 'source' of your micro-caps? Do you get them off the NASDAQ =
site, TC-2000, or a general "stock selector."
TIA
Jerry
=20
Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Friday, May 03, 2002 9:54 AM
Subject: [CANSLIM] MWRK, microcaps, charts
Ian,
I'm addressing this to you primarily, as you are more familiar with =
microcap behavior, though others on the list may have a point of view on =
this as well... I tend to stick to stocks trading >=3D$10, but monitor =
lower priced stocks for the up and comers. Something I've observed that =
confuses me, however, are the chart patterns for these minis as they =
begin their charge ahead. A good recent example is MWRK (not a perfect =
example, because it traded around 6-12 for quite a while before =
breakout, but good enough for the chart example.)
The question is this....when I look at this chart, it looks like a =
classic parabolic climax run. Something I normally see after a stock has =
put in its 3rd or 4th stage base and is giving up the ghost. In those =
cases, I'm looking to run for cover or short. But what I've noticed =
lately is the tendency for microcaps to shoot into these patterns after =
breaking from their long flat slumbering bases, settle down, and then =
start a steady ascent. Is that a "normal" pattern that I'm seeing for =
the microcaps or is it an anomaly that you've noticed in the market over =
the last couple of years? Any and all thoughts on the subject would be =
most appreciated.
Katherine
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<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 Jerry,</DIV>
<DIV> </DIV>
<DIV>I use a combination of DGO and Vectorvest for all my mining and =
candidate=20
selection. Between those 2 tools, I'm able to spot stocks well before =
they=20
become well-known names and appear in the IBD. I don't use any of the =
free=20
screeners available on the web because the results are too limiting. My =
own=20
approach is to look at bare minimum requirements for forward growth =
rate, price,=20
ADV, 50/200 day moving averages, A/D and RS. From there I sort and =
filter for=20
the fundamental requirements, group strength, etc. My preference is to =
weight=20
the values for each of these rather than eliminating candidates based on =
specific minimums. That means my "universe" of CANLSIM candidates runs =
about=20
700-800 at any one time. I use current technical strength to draw my =
eye, then=20
sort based on the preponderance of evidence for all other things =
CANSLIM. I've=20
found this approach to be the best for my personal style primarily =
because it=20
allows me to keep a pulse on the health of the CANSLIM universe and =
sectors=20
that are showing outperformance despite the overall market averages. The =
other=20
reason that I like this approach is that I'm never in a position to =
introduce=20
bias into the stocks I do or do not look at. I don't rely on lists from =
the=20
internet, TV , the IBD, newsletters, friends, web sites, or message =
boards. If=20
it doesn't show up in my universe, I don't look at it and vice =
versa.</DIV>
<DIV> </DIV>
<DIV>So more to the point of the message thread, I "dip down" into =
microcap=20
territory to get the pulse of the market, but I tend to keep my buying =
to stocks=20
>=3D$10. That means I miss some of the early explosive action that =
Ian and Tom=20
catch. But for me, the $10 minimum is a "sleep factor" selection =
criteria.</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=3Ddocdoer@swbell.net href=3D"mailto:docdoer@swbell.net">Jerry =
Weiss</A>=20
</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> Saturday, May 04, 2002 =
11:01=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] MWRK, =
microcaps,=20
charts</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D4>K:</FONT></DIV>
<DIV><FONT face=3DArial size=3D4>I haven't been in the market very =
long, but I've=20
been examining an awful lot of charts. I've seen the=20
pattern you're describing [the sudden, rapid ascent from a =
long,=20
short or almost non-existant base] occur in various stock=20
charts over time, but my impression is that the =
phenomenon has=20
snowballed "recently" -- perhaps over the last year or=20
two. </FONT></DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV><FONT face=3DArial size=3D4>The micro-caps and other stocks I've =
looked at=20
come from internet "stock selectors," so I assume they are just=20
"average." Would you mind sharing the 'source' of your =
micro-caps? =20
Do you get them off the NASDAQ site, TC-2000, or a general "stock=20
selector."</FONT></DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV><FONT face=3DArial size=3D4>TIA</FONT></DIV>
<DIV><FONT face=3DArial size=3D4>Jerry</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV>Message ----- </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=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> Friday, May 03, 2002 =
9:54=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] MWRK, =
microcaps,=20
charts</DIV>
<DIV><FONT face=3DArial size=3D4></FONT><FONT face=3DArial =
size=3D4></FONT><FONT=20
face=3DArial size=3D4></FONT><FONT face=3DArial =
size=3D4></FONT><BR></DIV>
<DIV>Ian,</DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV>I'm addressing this to you primarily, as you are more familiar =
with=20
microcap behavior, though others on the list may have a point of =
view on=20
this as well... I tend to stick to stocks trading >=3D$10, but =
monitor=20
lower priced stocks for the up and comers. Something I've observed =
that=20
confuses me, however, are the chart patterns for these minis as they =
begin=20
their charge ahead. A good recent example is MWRK (not a perfect =
example,=20
because it traded around 6-12 for quite a while before breakout, but =
good=20
enough for the chart example.)</DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV>The question is this....when I look at this chart, it looks =
like a=20
classic parabolic climax run. Something I normally see after a stock =
has put=20
in its 3rd or 4th stage base and is giving up the ghost. In those =
cases, I'm=20
looking to run for cover or short. But what I've noticed lately is =
the=20
tendency for microcaps to shoot into these patterns after breaking =
from=20
their long flat slumbering bases, settle down, and then start a =
steady=20
ascent. Is that a "normal" pattern that I'm seeing for the microcaps =
or is=20
it an anomaly that you've noticed in the market over the last couple =
of=20
years? Any and all thoughts on the subject would be most =
appreciated.</DIV>
<DIV><FONT face=3DArial size=3D4></FONT> </DIV>
<DIV>Katherine</DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Next Article (by Author): Re: [CANSLIM] IBD website question? "Katherine Malm"
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