Go to Jeff Salisbury LWGate Home Page.From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: [CANSLIM] Today's WebLink
Date: Thu, 30 May 2002 09:02:20 -0400
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This is a multi-part message in MIME format. - ------=_NextPart_000_000B_01C207B8.B4951040 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Bulletin: Here we go again with some new CANSLIM tactics springing from WON's perfect hindsight in today's WebLink on HOV. I quote: But on May 8, the stock notched a new intraday high on quiet trade and finished lower that day (Point 4). New highs on low volume are one sign that demand is waning and pose as a key sell signal. However, given that the stock was only in the 10th week of its advance, it can be worth waiting to see if a rally still has juice. Over the next week and a half, Hovnanian fell hard and clipped its 50-day line on heavy trade (Point 5). On May 16, the stock closed below its 50-day for the first time since November. But from the next day, it began clawing its way back above the key intermediate trend line. The first new lesson (to me, anyway) is couched in the statement, "But (operative word) on May 8...a new intraday high on quiet trade...a key sell signal." When I look at the chart on May 8, I see something different: It tells me the stock closed down that day on low volume. I thought this was a good sign. But now its a bad sign, because it reached a new "intraday" high on light volume. Maybe I was in the men's room during the advanced seminar when they covered this. :) My point is, if you new about the "intraday high on low volume sell rule," wouldn't you have SOLD the next morning at the open? (If you didn't, then today's Investor's Corner is for naught.) But wait a minute, lo and behold, yet another new rule surfaces: "However, given that the stock was only in the 10th week of its advance, it can be worth waiting to see if the rally still has juice." Where in the 24 Rules is that hidden? I searched the whole Investors.com for "rally juice" and nada. In hindsight, the fact remains, if you held HOV, you would be wise to have sold on the new intraday high on low volume. That is, if you knew about that rule. I guess we learn something new every day, don't we? Where oh where did I put that darn time machine! Duke - ------=_NextPart_000_000B_01C207B8.B4951040 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; = charset=3Dus-ascii"> <TITLE>Message</TITLE> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR></HEAD> <BODY> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>Bulletin: = Here we go=20 again with some new CANSLIM tactics springing from WON's perfect = hindsight in=20 today's WebLink on HOV.<SPAN class=3D656573312-30052002><FONT = face=3DArial> I=20 quote:</FONT></SPAN></FONT></SPAN><SPAN class=3D656573312-30052002><FONT = face=3DArial> </FONT></SPAN></DIV> <DIV><SPAN class=3D656573312-30052002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D656573312-30052002>But on May 8, the stock notched a = new=20 intraday high on quiet trade and finished lower that day (Point 4). New = highs on=20 low volume are one sign that demand is waning and pose as a key sell = signal.=20 However, given that the stock was only in the 10th week of its advance, = it can=20 be worth waiting to see if a rally still has juice. Over the next week = and a=20 half, Hovnanian fell hard and clipped its 50-day line on heavy trade = (Point 5).=20 On May 16, the stock closed below its 50-day for the first time since = November.=20 But from the next day, it began clawing its way back above the key = intermediate=20 trend line.</SPAN></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>The = first new lesson=20 (to me, anyway) is couched in the statement, "But (operative word) = on May=20 8...a new intraday high on quiet trade...a key sell signal." When = I look=20 at the chart on May 8, I see something different: It tells me = the=20 stock closed down that day on low volume. I thought this was a = good=20 sign. But now its a bad sign, because it reached a new "intraday" = high on=20 light volume. Maybe I was in the men's room during the advanced = seminar=20 when they covered this. :)</FONT></SPAN></DIV> <DIV><SPAN class=3D656573312-30052002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>My point is, if = you new=20 about the "intraday high on low volume sell rule," wouldn't = you have=20 SOLD the next morning at the open? (If you didn't, then today's = Investor's=20 Corner is for naught.) </FONT></SPAN></DIV> <DIV><SPAN class=3D656573312-30052002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>But wait a = minute, lo=20 and behold, yet another new rule surfaces: "However, given = that the=20 stock was only in the 10th week of its advance, it can be worth waiting = to see=20 if the rally still has juice." Where in the 24 Rules is that = hidden? =20 I searched the whole Investors.com for "rally juice" and=20 nada. </FONT></SPAN></DIV> <DIV><SPAN class=3D656573312-30052002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>In hindsight, = the fact=20 remains, if you held HOV, you would be wise to have sold on the new = intraday=20 high on low volume. That is, if you knew about that=20 rule. </FONT></SPAN></DIV> <DIV><SPAN class=3D656573312-30052002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D656573312-30052002><FONT face=3DArial>I guess we = learn something=20 new every day, don't we? </FONT></SPAN><SPAN=20 class=3D656573312-30052002><FONT face=3DArial>Where oh where did I put = that darn=20 time machine! </DIV> <DIV> <P></FONT></SPAN><SPAN class=3D656573312-30052002><FONT=20 face=3DArial>Duke</FONT></SPAN></P></DIV> <DIV align=3Dleft> </DIV> <DIV><FONT face=3DArial></FONT> </DIV></BODY></HTML> - ------=_NextPart_000_000B_01C207B8.B4951040-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Author): [CANSLIM] Maybe off-topic, but I don't think so "Duke Miller"
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