Re: [CANSLIM] DCOM - B/O rules

From: Jack Tencza <jtenz@yahoo.com>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 04:45:53 -0700 (PDT)
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Tom,did you mean to reply with your previous reply?

I too am a little fuzzy on what the the pivot point is
with DCOM. The midpoint between the two dips seems to
be 25.90 with the pivot being .10 above? Would
appreciate some help from someone?

Many thanks.



- --- Tom Worley <stkguru@bellsouth.net> wrote:
> 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,
> 
=== message truncated ===


=====
Jack

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