RE: [CANSLIM] DCOM - B/O rules

From: "Gasta, Jeffrey" <Jeff.Gasta@marriott.com>
Subject: RE: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 15:27:56 -0400

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Hello Victor,

I'm new to this group and CANSLIM, but I did find a couple of web sites that
use algorithms to spot bases and breakouts.  One is CUPWATCH.COM and another
is CANSLIM.NET.  Perhaps other members of this group have experience with
these services and can tell us if they work and if they are worth the price.
Thanks, jg  

- -----Original Message-----
From: vchang@win-invest.com [mailto:vchang@win-invest.com]
Sent: Tuesday, July 30, 2002 8:18 PM
To: canslim@lists.xmission.com
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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