[CANSLIM] LLUR vs. Late Stage Base

From: Spencer48@aol.com
Subject: [CANSLIM] LLUR vs. Late Stage Base
Date: Fri, 12 Jul 2002 14:56:33 EDT

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Tom:

     I often had troubles in identifying LLUR's and distinguishing them from 
WON's late-stage bases.   While LLUR's look bullish and strong (and I've read 
often that "the trend is your friend"), I wasn't able to understand the 
difference between them and late stage bases-since they are both ascending 
bases (with LLURs being bullish and late-stage bases being bearish [according 
to WON's analysis]).  To me, however, both were like an indecipherable Elliot 
Wave in that invariably:  One can always identify the wave AFTER the fact.  

     So I wrote Ask WON (in investors.com) and here is his answer:  

     "My question is: how do you distinguish between an ascending base and a 
late stage base-they both rise from  about 3 bases. Cincinnati, OH    (AskWon 
answered it 7/8/02)                    
      WON's Answer:  The difference lies in the shape of the bases. In a 
late-stage base, the stock might have already run up anywhere from as much as 
100% to 400%-500% or more. The bases it made along the way had a minimum 
correction of 20%, assuming they were all cup bases. But in an ascending 
base, there are three pullbacks from 10% to 20% each, and the low point 
during each sell-off is higher than the previous.  Since the pullbacks were 
smaller than in a normal cup base, you can count this as one long base 
structure. These bases occur when a stock has much power but is held back by 
a sideways-moving market. Always keep in mind that ascending bases are rare. 
Also remember that if a stock breaks out of a base, but then corrects so far 
down that it undercuts the bottom of its base, you can then reset the base 
count."

jans

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