Go to Jeff Salisbury LWGate Home Page.From: "Fred Richards" <ffradrich@attbi.com>
Subject: [CANSLIM] Was yesterday's rally for real?
Date: Thu, 25 Jul 2002 07:57:56 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0000_01C233B0.FCD9FB80 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit In analyzing yesterday's rally, I would make the following points for your consideration: 1. A good deal of short covering occurred. I know that I covered most of my short positions by 9:15 CDT. 2. A fear from a lot of people that they did not want to get left missing the bottom fueled the buying in mostly large cap stocks. 3. The market was one in which all the technical indicators showed a major oversold position. Yet, the breadth of the market was not heavily in favor of the upside. And the number of stocks rated A in the Acc/Dis ratings for IBD actually fell to an all-time low hitting 106 yesterday. For the moment, this looks just like another relief rally in a bear market. Relief rallies rarely increase more than 15-20% from their low points so a lot of energy has already by consumed. For me, I will be very cautious in this market. You, of course, will make your own decisions. - ---------------------------------------------------------------------------- - ---- Fred Richards Corruptisima republica plurimae leges. [The more corrupt a republic, the more laws.] - - Tacitus, Annuals III 27 www.adrich.com - ------=_NextPart_000_0000_01C233B0.FCD9FB80 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></HEAD> <BODY> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>In = analyzing=20 yesterday's rally, I would make the following points for your=20 consideration:</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN = class=3D980034912-25072002> 1. A=20 good deal of short covering occurred. I know that I covered most = of my=20 short positions by 9:15 CDT.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN = class=3D980034912-25072002> 2. A=20 fear from a lot of people that they did not want to get left missing the = bottom fueled the buying in mostly large cap=20 stocks. </SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN = class=3D980034912-25072002> 3. The=20 market was one in which all the technical indicators showed a major = oversold=20 position.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>Yet, = the breadth of=20 the market was not heavily in favor of the upside.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>And = the number of=20 stocks rated A in the Acc/Dis ratings for IBD actually fell to an = all-time low=20 hitting 106 yesterday.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>For = the moment, this=20 looks just like another relief rally in a bear market. =20 </SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>Relief = rallies=20 rarely increase more than 15-20% from their low points so a lot of = energy=20 has already by consumed.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002>For = me, I will be=20 very cautious in this market. You, of course, will make your own=20 decisions.</SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2><SPAN=20 class=3D980034912-25072002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><SPAN class=3D980034912-25072002> <HR> </SPAN></FONT></DIV> <DIV><FONT face=3DArial size=3D2>Fred Richards</FONT></DIV> <DIV> </DIV> <DIV><FONT face=3DArial size=3D2>Corruptisima republica plurimae = leges. [The=20 more corrupt a republic, the more laws.] - - Tacitus, Annuals III=20 27</FONT></DIV> <DIV> </DIV> <DIV><FONT face=3DArial size=3D2><A=20 href=3D"http://www.adrich.com/">www.adrich.com</A></FONT></DIV> <DIV> </DIV></BODY></HTML> - ------=_NextPart_000_0000_01C233B0.FCD9FB80-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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