Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 05:47:39 -0500
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Hi Mike,
Here's a quote from today's "Big Picture"
Dime Community Bancshares (DCOM), which was highlighted in Monday =
evening's WebLink, broke out of a 10-week, double-bottom base. The stock =
climbed 1.46 to 26.90 on more than four times normal volume.
Katherine
----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 30, 2002 11:37 PM
Subject: RE: [CANSLIM] DCOM - B/O rules
I see it more as a cup-with-handle (but when the only tool you have is =
a hammer, everything looks like a nail!) because the two dips were not =
of equal depth, but I'm not sure what the tolerance limits are.
However, as a CwH it formed a pivot at $25.90 on 7/10. It then went on =
to dip to a low of $20.20 in the handle, which was a 22% drop. WON says =
that a stock should only correct by at most 15% in the handle (although =
there are inconsistent statements on this) so it didn't qualify as a CwH =
either (but then virtually nothing has in the last couple of weeks). =
Nevertheless, todays breakout was very strong and could be buyable up to =
$27.12 (5% above pivot).
Aloha,
Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
-----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Tuesday, July 30, 2002 2:46 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - B/O rules
Hi Victor,
I'll leave the specific analysis of the DCOM chart to somebody else, =
but in the meantime, here's something to get you started:
Question=20
Can a double-bottom base have a handle, or is it just the =
start of another base?=20
=20
Answer=20
In a double-bottom base, the pivot (buy) point typically =
occurs when the stock clears the peak in the middle of the W-shaped =
pattern. Sometimes, double bottoms will form handles before they reach =
this point. In those situations, the pivot point is when the stock =
clears the highest price point in the handle area. The handle should =
drift downward slightly and usually form over a period of one to seven =
weeks.
Course 1 in the IBD Learning Center on our Web site has a =
lesson on chart reading. To get there directly, go to this link - =
http://www.investors.com/learn/B09.asp=20
Also, go to our Investor's Corner archive entitled "What Can =
Technical Indicators Tell Me?" to view past articles on this topic - =
http://www.investors.com/learn/IC.asp#tech=20
Our "Ask Bill O'Neil" archive offers a compilation of Q&A's on =
the subject of chart reading at this link - =
http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5
--Katherine=20
----- Original Message -----=20
From: vchang@win-invest.com=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 30, 2002 7:18 PM
Subject: [CANSLIM] DCOM - B/O rules
MessageOn Wedsday's edition (today) IBD listed DCOM as b/o from a =
double
bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 Monday, =
just
missing a breakout..." .
As a newbie trying to learn more about charts and breakouts, this =
seems like
a great example to check my understanding.
If I am getting it right, the reason why DCOM is deemed to have =
b/o is
because of the following two easons:
a) It closed at 26.90 having achieved an high of 27.0, and that is =
above the
previous high of 26.80 back in May 17, 2002.
b) The new high was achieved at a volume 1,056,800 which is 378% =
up from the
day before and four times the average daily volume of 221,100
What is the exact rule for a breakout mathematically? (Lets say =
that I were
to program it in say Metastock?)
Base on this case I can see two rules at least (in pseudo-code):
IF today's high is greater than the previous high (is this the all =
time high
or just the rolling 52 week high?)
AND
IF today's volume is greater than N times the normal volume (is =
this some
sort of moving average of the daily volume, or just yeaterday's =
volume)
THEN yippe it is a B/O
Is there any "fuzziness" to the above rules?
BTW, the fundamentals on DCOM also look great, ignoring M for a =
moment, is
this a valid CANSLIM candidate stock?
Rgds
Victor Chang
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<BODY bgColor=3D#ffffff>
<DIV>Hi Mike,</DIV>
<DIV> </DIV>
<DIV>Here's a quote from today's "Big Picture"</DIV>
<DIV>
<P><B>Dime Community Bancshares</B> (<A=20
href=3D"javascript:popup=3Dwindow.open('http://www.investors.com/smartsel=
ect/SmartSelect.asp?x=3DF3F4S5R6','SmartSelectPop','width=3D610,height=3D=
510,directories=3Dno,status=3Dno,location=3Dno,toolbar=3Dno,scrollbars=3D=
no,resizable=3Dyes,menubar=3Dno,copyhistory=3Dno,alwaysRaised=3D0,depende=
nt=3Dno');popup.focus();">DCOM</A>),=20
which was highlighted in <A=20
href=3D"http://www.investors.com/weblink/weblinkarch01.asp">Monday =
evening's=20
WebLink</A>, broke out of a <EM>10-week, double-bottom base</EM>. The =
stock=20
climbed 1.46 to 26.90 on more than four times normal volume.</P>
<P>Katherine</P></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=3Dmikegibbons@proactech.com=20
href=3D"mailto:mikegibbons@proactech.com">Mike Gibbons</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> Tuesday, July 30, 2002 =
11:37=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] DCOM - =
B/O=20
rules</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial =
color=3D#0000ff size=3D2>I=20
see it more as a cup-with-handle (but when the only tool you have is a =
hammer,=20
everything looks like a nail!) because the two dips were not of equal =
depth,=20
but I'm not sure what the tolerance limits are.</FONT></SPAN></DIV>
<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D630372004-31072002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>However, as a CwH it formed a pivot at $25.90 on 7/10. It =
then went on=20
to dip to a low of $20.20 in the handle, which was a 22% drop. WON =
says that a=20
stock should only correct by at most 15% in the handle (although there =
are=20
inconsistent statements on this) so it didn't qualify as a CwH either =
(but=20
then virtually nothing has in the last couple of weeks). Nevertheless, =
todays=20
breakout was very strong and could be buyable up to $27.12 (5% above=20
pivot).</FONT></SPAN></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive =
Technologies,=20
LLC</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
=
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D=
IV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of =
</B>Katherine=20
Malm<BR><B>Sent:</B> Tuesday, July 30, 2002 2:46 PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] DCOM - =
B/O=20
rules<BR><BR></FONT></DIV>
<DIV>Hi Victor,</DIV>
<DIV> </DIV>
<DIV>I'll leave the specific analysis of the DCOM chart to somebody =
else,=20
but in the meantime, here's something to get you started:</DIV>
<DIV> </DIV>
<DIV>
<TABLE cellSpacing=3D0 width=3D"100%" border=3D0>
<TBODY>
<TR>
<TD class=3Dsubtitle>Question</TD></TR>
<TR>
<TD class=3Dtextcell> </TD>
<TD class=3Dtextcell>Can a double-bottom base have a handle, or =
is it=20
just the start of another base?</TD></TR>
<TR>
<TD><IMG height=3D6 alt=3D""=20
src=3D"http://investdaily.custhelp.com/rnt/rnw/img/trnsp.gif"=20
width=3D1></TD></TR>
<TR>
<TD class=3Dsubtitle> </TD>
<TD class=3Dsubtitle>Answer</TD></TR>
<TR>
<TD class=3Dtextcell> </TD>
<TD class=3Dtextcell>
<DIV>In a double-bottom base, <STRONG><FONT =
color=3D#0000ff>the pivot=20
(buy) point typically occurs when the stock clears the peak in =
the=20
middle of the W-shaped pattern.</FONT></STRONG> Sometimes, =
double=20
bottoms will form handles before they reach this point. In =
those=20
situations, the pivot point is when the stock clears the =
highest price=20
point in the handle area. The handle should drift downward =
slightly=20
and usually form over a period of one to seven =
weeks.<BR><BR>Course 1=20
in the IBD Learning Center on our Web site has a lesson on =
chart=20
reading. To get there directly, go to this link - <A=20
href=3D"http://www.investors.com/learn/B09.asp"><FONT =
face=3DVerdana=20
=
color=3D#336699>http://www.investors.com/learn/B09.asp</FONT></A>=20
<BR><BR>Also, go to our Investor's Corner archive entitled =
=93What Can=20
Technical Indicators Tell Me?=94 to view past articles on this =
topic -=20
<A href=3D"http://www.investors.com/learn/IC.asp#tech"><FONT=20
face=3DVerdana=20
=
color=3D#336699>http://www.investors.com/learn/IC.asp#tech</FONT></A>=20
<BR><BR>Our =93Ask Bill O=92Neil=94 archive offers a =
compilation of=20
Q&A=92s on the subject of chart reading at this link - <A=20
=
href=3D"http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5">=
<FONT=20
face=3DVerdana=20
=
color=3D#336699>http://www.investors.com/askBill/Search_ByTopic.asp?Topic=
ID=3D5</FONT></A></DIV>
<DIV> </DIV>
<DIV>--Katherine</DIV></TD></TR></TBODY></TABLE></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=3Dvchang@win-invest.com=20
href=3D"mailto:vchang@win-invest.com">vchang@win-invest.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
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> Tuesday, July 30, =
2002 7:18=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] DCOM - =
B/O=20
rules</DIV>
<DIV><BR></DIV>MessageOn Wedsday's edition (today) IBD listed DCOM =
as b/o=20
from a double<BR>bottom. On Tuesday IBD weblink said " ... =
Dime hit=20
25.94 Monday, just<BR>missing a breakout..." .<BR><BR>As a newbie =
trying=20
to learn more about charts and breakouts, this seems like<BR>a =
great=20
example to check my understanding.<BR><BR>If I am getting it =
right, the=20
reason why DCOM is deemed to have b/o is<BR>because of the =
following two=20
easons:<BR><BR>a) It closed at 26.90 having achieved an high of =
27.0, and=20
that is above the<BR>previous high of 26.80 back in May 17,=20
2002.<BR><BR>b) The new high was achieved at a volume 1,056,800 =
which is=20
378% up from the<BR>day before and four times the average daily =
volume of=20
221,100<BR><BR>What is the exact rule for a breakout =
mathematically? (Lets=20
say that I were<BR>to program it in say Metastock?)<BR><BR>Base on =
this=20
case I can see two rules at least (in pseudo-code):<BR><BR>IF =
today's high=20
is greater than the previous high (is this the all time high<BR>or =
just=20
the rolling 52 week high?)<BR>AND<BR>IF today's volume is greater =
than N=20
times the normal volume (is this some<BR>sort of moving average of =
the=20
daily volume, or just yeaterday's volume)<BR>THEN yippe it is a=20
B/O<BR><BR>Is there any "fuzziness" to the above =
rules?<BR><BR>BTW,=20
the fundamentals on DCOM also look great, ignoring M for a moment, =
is<BR>this a valid CANSLIM candidate =
stock?<BR><BR>Rgds<BR><BR>Victor=20
=
Chang<BR><BR><BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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