Go to Jeff Salisbury LWGate Home Page.From: "Donald Wallker" <dougald@dmv.com>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 11:22:26 -0400
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Ann - - In connection with my remarks about JCOM you should note that =
IBD"s Rael Most Active noted today that : "J2 Global Communications =
(JCOM) retreated 0.62 to $20.08 on more than four times its normal trade =
after clearing a 10-week base-on-base structure Friday." Moreover, it =
is of interest to note that today JCOM traded as low as $18.50 thus far. =
- - Donald=20
- ----- Original Message -----=20
From: Donald Wallker=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, July 31, 2002 10:59 AM
Subject: Re: [CANSLIM] DCOM - B/O rules
Ann -- If you would like to look at another stock to check out, try =
JCOM. Its overall rating is 98 A plus, its 1st in all rankings of 35 =
stocks in its group., its ratings are 81,99,A plus, C and A minus. I =
wonder if it might be considered a good buy today, since "M" is driving =
it down after a couple of great days from the breakout. - Donald
----- Original Message -----=20
From: Ann=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, July 31, 2002 8:50 AM
Subject: Re: [CANSLIM] DCOM - B/O rules
I have written down (though I don't know where I got it) that WON =
says that in this M, we can accept handles which go as low as =
20-30%--also, that we shouldn't chase a stock more than 2-3% above =
pivot.
Ann
----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, July 31, 2002 12:37 AM
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><FONT face=3DArial size=3D2>Ann - - In connection with my remarks =
about JCOM=20
you should note that IBD"s Rael Most Active noted today that : "<FONT=20
face=3D"Times New Roman"><STRONG>J2 Global Communications</STRONG> =
(</FONT><A=20
href=3D"javascript:popup=3Dwindow.open('http://www.investors.com/smartsel=
ect/SmartSelect.asp?x=3DL3F4S5R6','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();"><FONT=20
face=3D"Times New Roman">JCOM</FONT></A><FONT face=3D"Times New Roman">) =
retreated=20
0.62 to $20.08 on more than four times its normal trade after clearing a =
10-week=20
base-on-base structure Friday." Moreover, it is of interest =
to note=20
that today JCOM traded as low as $18.50 thus far. - -=20
Donald </FONT></FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </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=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Ddougald@dmv.com href=3D"mailto:dougald@dmv.com">Donald =
Wallker</A>=20
</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> Wednesday, July 31, 2002 =
10:59=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] DCOM - =
B/O=20
rules</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Ann -- If you would like to look at =
another stock=20
to check out, try JCOM. Its overall rating is 98 A plus, its 1st =
in all=20
rankings of 35 stocks in its group., its ratings are 81,99,A plus, C =
and A=20
minus. I wonder if it might be considered a good buy today, =
since "M" is=20
driving it down after a couple of great days from the breakout. =
- -=20
Donald</FONT></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=3Dannholly@attbi.com =
href=3D"mailto:annholly@attbi.com">Ann</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, July 31, =
2002 8:50=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] DCOM - =
B/O=20
rules</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>I have written down (though I don't know where I =
got it)=20
that WON says that in this M, we can accept handles which go as low =
as=20
20-30%--also, that we shouldn't chase a stock more than 2-3% above=20
pivot.</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>Ann</FONT></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=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> Wednesday, July 31, =
2002 12:37=20
AM</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=20
size=3D2>I see it more as a cup-with-handle (but when the only =
tool you have=20
is a hammer, everything looks like a nail!) because the two dips =
were not=20
of equal depth, but I'm not sure what the tolerance limits=20
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=20
on to dip to a low of $20.20 in the handle, which was a 22% drop. =
WON says=20
that a stock should only correct by at most 15% in the handle =
(although=20
there are inconsistent statements on this) so it didn't qualify as =
a CwH=20
either (but then virtually nothing has in the last couple of =
weeks).=20
Nevertheless, todays breakout was very strong and could be buyable =
up to=20
$27.12 (5% above 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=20
else, 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=20
it 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=20
pivot (buy) point typically occurs when the stock clears =
the peak=20
in the middle of the W-shaped pattern.</FONT></STRONG> =
Sometimes,=20
double bottoms will form handles before they reach this =
point. In=20
those situations, the pivot point is when the stock clears =
the=20
highest price point in the handle area. The handle should =
drift=20
downward slightly and usually form over a period of one to =
seven=20
weeks.<BR><BR>Course 1 in the IBD Learning Center on our =
Web site=20
has a lesson on chart reading. To get there directly, go =
to this=20
link - <A =
href=3D"http://www.investors.com/learn/B09.asp"><FONT=20
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=20
Can Technical Indicators Tell Me?=94 to view past articles =
on this=20
topic - <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=20
b/o from a double<BR>bottom. On Tuesday IBD weblink said =
" ...=20
Dime hit 25.94 Monday, just<BR>missing a breakout..." =
.<BR><BR>As a=20
newbie trying to learn more about charts and breakouts, this =
seems=20
like<BR>a great example to check my understanding.<BR><BR>If I =
am=20
getting it right, the reason why DCOM is deemed to have b/o=20
is<BR>because of the following two easons:<BR><BR>a) It closed =
at=20
26.90 having achieved an high of 27.0, and that is above=20
the<BR>previous high of 26.80 back in May 17, 2002.<BR><BR>b) =
The new=20
high was achieved at a volume 1,056,800 which is 378% up from=20
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?=20
(Lets say that I were<BR>to program it in say =
Metastock?)<BR><BR>Base=20
on this case I can see two rules at least (in =
pseudo-code):<BR><BR>IF=20
today's high is greater than the previous high (is this the =
all time=20
high<BR>or just the rolling 52 week high?)<BR>AND<BR>IF =
today's volume=20
is greater than N times the normal volume (is this =
some<BR>sort of=20
moving average of the daily volume, or just yeaterday's=20
volume)<BR>THEN yippe it is a B/O<BR><BR>Is there any=20
"fuzziness" to the above rules?<BR><BR>BTW, the fundamentals =
on DCOM=20
also look great, ignoring M for a moment, is<BR>this a valid =
CANSLIM=20
candidate stock?<BR><BR>Rgds<BR><BR>Victor=20
=
Chang<BR><BR><BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BL=
OCKQUOTE></BODY></HTML>
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