Re: [CANSLIM] DCOM - B/O rules

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 07:31:04 -0400
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7/10/02

- ----- Original Message ----- 
From: "Jack Tencza" <jtenz@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, July 31, 2002 7:29 AM
Subject: Re: [CANSLIM] DCOM - B/O rules


Tom, what date are you using for midpoint between the
two dips with DCOM? Thanks
- --- Tom Worley <stkguru@bellsouth.net> wrote:
> I have to agree with IBD on this one, Mike.  No cup
> & handle, definitely would call this a double
> bottom.  Keep in mind with a double bottom that you
> don't want two dips of equal depth, rather you want
> the second one undercutting the first. Same with a
> triple bottom. In this case, the second dip reached
> its bottom on a reversal day and closed up. However
> volume was not that impressive.
> 
> An aggressive investor (and would take one in this
> market) could have bought on 7/29, as it did trade
> over the high of the high of the center point of the
> "W" (but only by 4 cents, and volume not
> impressive). But yesterday's volume and price
> movement would mark this in my books as a b/o from a
> double bottom.
> 
> ----- Original Message ----- 
> From: Katherine Malm 
> To: canslim@lists.xmission.com 
> Sent: Wednesday, July 31, 2002 6:47 AM
> Subject: Re: [CANSLIM] DCOM - B/O rules
> 
> 
> 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 ----- 
>   From: Mike Gibbons 
>   To: canslim@lists.xmission.com 
>   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 
>             Can a double-bottom base have a handle,
> or is it just the start of another base? 
>          
>             Answer 
>             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 
> 
>           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 
> 
>           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=5
> 
>           --Katherine 
> 
>       ----- Original Message ----- 
>       From: vchang@win-invest.com 
>       To: canslim@lists.xmission.com 
>       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
> 
> 
> 
> 


=====
Jack

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