Re: [CANSLIM] DCOM - B/O rules

From: Jack Tencza <jtenz@yahoo.com>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 06:39:14 -0700 (PDT)
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Thanks Tom. I was looking for 26 on the 29th which is
.10 above the pivot point per the book. I use these
discussions as conformation that I'm actually learning
the CANSLIM rules/process. Your messages are one of
the several I read thoroughly and got into too much
"by the book" with your email earlier today. Thanks
for helping us new lads. It's very much appreciated. 
- --- Tom Worley <stkguru@bellsouth.net> wrote:
> I did reply, Jack, July 10, 2002 - came thru fine
> here. Hit a high of 25.90,
> closed at 25.50. A break over 25.90, which happened
> July 29, 2002, would
> signal a break out. However, volume that day was not
> heavy enough for me,
> and only eclipsed the mid point by 4 cents, so
> combine that with shaky "M"
> and it would have been wiser to wait for the better
> price action and volume
> yesterday.
> 
> Of course, today may take all that logic and
> reasoning off the table
> 
> ----- Original Message -----
> From: "Jack Tencza" <jtenz@yahoo.com>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, July 31, 2002 7:45 AM
> Subject: Re: [CANSLIM] DCOM - B/O rules
> 
> 
> 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
> 
=== message truncated ===


=====
Jack

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