Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] H&S on S&P
Date: Thu, 25 Jul 2002 07:50:38 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0097_01C233AF.F7BC4780 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi John, I suppose *anything* could happen at this point, but I don't think we = really need to worry about it. As I see it, each and every day brings = new information and new opportunities. You've got people on one side of = the camp saying "this time it's different...the Bear will go on because = of x y and z...this chart pattern says xxx....this thing will go on = forever....sell into strength....", you've got people on the other side = saying "buy, buy buy, this is the bottom...market history shows = xyz....etc..." These are the times where discipline and trading what we = see, not what we feel or are worried/expect will happen, are most = critical.=20 These are things we need to see: a follow through day, high quality = CANSLIM candidates setting up and breaking out of sound bases. If we get = that, we buy long and follow a sound sell discipline. If we don't, we = sit it out and/or wait for short setups. Given that the market could do = anything at this point, it seems the most important task at hand is to = be *ready* to trade in the direction the market wants to go. Katherine ----- Original Message -----=20 From: Cefaloni, John L Jr. [AMSTA-AR-WEA]=20 To: canslim@lists.xmission.com=20 Sent: Thursday, July 25, 2002 6:48 AM Subject: [CANSLIM] H&S on S&P Attached (hopefully) is a chart showing the head and shoulders on the = S&P 500. The top of the head is around 1500 and the neckline is around = 960, which we have crashed through under heavy volume. This seems like a textbook pattern. From what I remember reading about H&S patterns, = there may be a return to the neckline before we head back down, with a = target for the drop being the same as the distance from the neck to the head, = i.e., 1500 - 960 =3D 540 points. So the target would be 960 - 540 =3D 420 = points (gulp.) If it plays out like this, the return to the neck is the last good = chance to get out. Does anyone have any comments about this or any reasons why = you think it *won't* play out like this? <<5.1027596283489.mail.gif>>=20 Thanks, John C. - ------=_NextPart_000_0097_01C233AF.F7BC4780 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi John,</DIV> <DIV> </DIV> <DIV>I suppose *anything* could happen at this point, but I don't think = we=20 really need to worry about it. As I see it, each and every day = brings=20 new information and new opportunities. You've got people on one side of = the camp=20 saying "this time it's different...the Bear will go on because of = x y and=20 z...this chart pattern says xxx....this thing will go on forever....sell = into=20 strength....", you've got people on the other side saying "buy, buy buy, = this is=20 the bottom...market history shows xyz....etc..." These are the times = where=20 discipline and trading what we see, not what we feel or are = worried/expect will=20 happen, are most critical. </DIV> <DIV> </DIV> <DIV>These are things we need to see: a follow through day, high quality = CANSLIM=20 candidates setting up and breaking out of sound bases. If we get that, = we buy=20 long and follow a sound sell discipline. If we don't, we sit it out = and/or wait=20 for short setups. Given that the market could do anything at this point, = it=20 seems the most important task at hand is to be *ready* to trade in the = direction=20 the market wants to go.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=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=3Djohn.cefaloni@us.army.mil=20 href=3D"mailto:john.cefaloni@us.army.mil">Cefaloni, John L Jr.=20 [AMSTA-AR-WEA]</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> Thursday, July 25, 2002 = 6:48=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] H&S on=20 S&P</DIV> <DIV><BR></DIV>Attached (hopefully) is a chart showing the head and = shoulders=20 on the S&P<BR>500. The top of the head is around 1500 and = the=20 neckline is around 960,<BR>which we have crashed through under heavy=20 volume. This seems like a<BR>textbook pattern. From what I = remember reading about H&S patterns, there<BR>may be a return to = the=20 neckline before we head back down, with a target for<BR>the drop being = the=20 same as the distance from the neck to the head, i.e.,<BR>1500 - 960 = =3D 540=20 points. So the target would be 960 - 540 =3D 420=20 points<BR>(gulp.)<BR><BR>If it plays out like this, the return to the = neck is=20 the last good chance to<BR>get out. Does anyone have any = comments about=20 this or any reasons why you<BR>think it *won't* play out like=20 this?<BR><BR> <<5.1027596283489.mail.gif>>=20 <BR><BR>Thanks,<BR>John C.<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0097_01C233AF.F7BC4780-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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