Go to Jeff Salisbury LWGate Home Page.From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: RE: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 13:13:27 -0400
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It's also interesting to note that this has happened to NUMEROUS stocks
since early this year...breakout....retreat. As Austin Powers would
say, "Caaaaaaaaaasssshhhhh, bay-beeeee!"
Duke
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Donald Wallker
Sent: Wednesday, July 31, 2002 11:22 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - B/O rules
Ann - - In connection with my remarks about JCOM you should note that
IBD"s Rael Most Active noted today that : "J2 Global Communications (
<javascript:popup=window.open('http://www.investors.com/smartselect/Smar
tSelect.asp?x=L3F4S5R6','SmartSelectPop','width=610,height=510,directori
es=no,status=no,location=no,toolbar=no,scrollbars=no,resizable=yes,menub
ar=no,copyhistory=no,alwaysRaised=0,dependent=no');popup.focus();> 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
- ----- Original Message -----
From: Donald Wallker <mailto:dougald@dmv.com>
To: canslim@lists.xmission.com
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 -----
From: Ann <mailto:annholly@attbi.com>
To: canslim@lists.xmission.com
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 -----
From: Mike Gibbons <mailto:mikegibbons@proactech.com>
To: canslim@lists.xmission.com
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 <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?
<http://investdaily.custhelp.com/rnt/rnw/img/trnsp.gif>
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>
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>
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>
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
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<DIV><SPAN class=3D078431117-31072002><FONT face=3DArial>It's also =
interesting to=20
note that this has happened to NUMEROUS stocks since early this=20
year...breakout....retreat. As Austin Powers would say, =20
"Caaaaaaaaaasssshhhhh, bay-beeeee!"</FONT></SPAN></DIV>
<DIV><SPAN class=3D078431117-31072002><FONT =
face=3DArial></FONT></SPAN> </DIV>
<DIV><SPAN class=3D078431117-31072002><FONT =
face=3DArial>Duke</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV></DIV>
<DIV class=3DOutlookMessageHeader lang=3Den-us dir=3Dltr =
align=3Dleft><FONT=20
face=3DTahoma size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]=20
<B>On Behalf Of </B>Donald Wallker<BR><B>Sent:</B> Wednesday, July 31, =
2002=20
11:22 AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> =
Re:=20
[CANSLIM] DCOM - B/O rules<BR><BR></FONT></DIV>
<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=20
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. =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>=
=20
</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=20
stock to check out, try JCOM. Its overall rating is 98 A plus, =
its 1st=20
in all rankings of 35 stocks in its group., its ratings are 81,99,A =
plus, C=20
and A minus. I wonder if it might be considered a good buy =
today,=20
since "M" is driving it down after a couple of great days from =
the=20
breakout. - 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>=20
</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 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 =
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=20
12:37 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=20
have is a hammer, everything looks like a nail!) because the two =
dips=20
were not 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=20
went on to dip to a low of $20.20 in the handle, which was a 22% =
drop.=20
WON says that a stock should only correct by at most 15% in the =
handle=20
(although there are inconsistent statements on this) so it =
didn't=20
qualify as a CwH either (but then virtually nothing has in the =
last=20
couple of weeks). Nevertheless, todays breakout was very strong =
and=20
could be buyable up to $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 NOSEND=3D"1"></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=20
peak in the middle of the W-shaped =
pattern.</FONT></STRONG>=20
Sometimes, double bottoms will form handles before they =
reach=20
this point. In those situations, the pivot point is when =
the=20
stock clears the highest price point in the handle area. =
The=20
handle should drift downward slightly and usually form =
over a=20
period of one to seven weeks.<BR><BR>Course 1 in the IBD =
Learning Center on our Web site has a lesson on chart =
reading.=20
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 “What=20
Can Technical Indicators Tell Me?” to view past =
articles on this=20
topic - <A=20
=
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 “Ask Bill O’Neil” archive =
offers a compilation of=20
Q&A’s 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=20
7:18 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=20
as b/o from a double<BR>bottom. On Tuesday IBD weblink =
said "=20
... Dime hit 25.94 Monday, just<BR>missing a breakout..."=20
.<BR><BR>As a newbie trying to learn more about charts and=20
breakouts, this seems like<BR>a great example to check my=20
understanding.<BR><BR>If I am getting it right, the reason =
why DCOM=20
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=20
27.0, and that is above the<BR>previous high of 26.80 back =
in May=20
17, 2002.<BR><BR>b) The new high was achieved at a volume =
1,056,800=20
which is 378% up from the<BR>day before and four times the =
average=20
daily volume of 221,100<BR><BR>What is the exact rule for a =
breakout=20
mathematically? (Lets say that I were<BR>to program it in =
say=20
Metastock?)<BR><BR>Base on this case I can see two rules at =
least=20
(in pseudo-code):<BR><BR>IF today's high is greater than the =
previous high (is this the all time high<BR>or just the =
rolling 52=20
week high?)<BR>AND<BR>IF today's volume is greater than N =
times the=20
normal volume (is this some<BR>sort of moving average of the =
daily=20
volume, or just yeaterday's volume)<BR>THEN yippe it is a=20
B/O<BR><BR>Is there any "fuzziness" to the above=20
rules?<BR><BR>BTW, the fundamentals on DCOM also look great, =
ignoring M for a moment, is<BR>this a valid CANSLIM =
candidate=20
stock?<BR><BR>Rgds<BR><BR>Victor=20
=
Chang<BR><BR><BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BL=
OCKQUOTE></BLOCKQUOTE></BODY></HTML>
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