Go to Jeff Salisbury LWGate Home Page.From: "Scott Gettis" <sgettis@ucla.edu>
Subject: RE: [CANSLIM] "Don't let A Shakeout Scare You"
Date: Fri, 2 Aug 2002 02:22:23 -0700
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This is a multi-part message in MIME format. - ------=_NextPart_000_0002_01C239CB.6FFAB1C0 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: 7bit from what it looks like to me there really was no handle in this base. The only opportunity to buy would have been on the day it gappped up to 20 on high volume. However, i doubt very many of us would have had the guts to do that since it lost almost 3 points the day before. -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Mike Gibbons Sent: Friday, August 02, 2002 1:56 AM To: canslim@lists.xmission.com Subject: [CANSLIM] "Don't let A Shakeout Scare You" Out here in Hawaii, I don't get IBD until 2 pm and its usually late in the evening before I get around to reading it, so I apologize for bringing up yesterdays news, but this Investor's Corner article (08/01/02) really has me puzzled. What lesson are we supposed to learn from it? Discussing TOO in 1999, they say it wasn't an ideal base because it lacked a handle. Then that the breakout lacked sufficient volume. From the graph in the paper, it looks as though the pivot was at about $19. Following that Greenspan threatened raising interest rates and the stock closed lower three days in a row on significantly above average volume, closing at its low for the day on the third day at about $15.25, or about 20% below the pivot (remember there's a sell rule at 8% below the buy price above the pivot) . Although my understanding of CANSLIM and its application is still in its infancy, I'd be surprized if any CANLIMmer was still in the stock at that point, and yet they seem to be saying that one should have hung on through the shakeout for a gain on the 4th day of 29%. However , they don't say how analysis of the chart would have led one to stay invested. I'm looking for enlightenment, can someone explain what I'm missing here? Aloha, Mike Gibbons http://www.proactech.com - ------=_NextPart_000_0002_01C239CB.6FFAB1C0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Dwindows-1252"> <META content=3D"MSHTML 5.50.4915.500" name=3DGENERATOR></HEAD> <BODY> <DIV><SPAN class=3D614110909-02082002><FONT face=3DArial color=3D#0000ff = size=3D2>from=20 what it looks like to me there really was no handle in this base. = The only=20 opportunity to buy would have been on the day it gappped up to 20 on = high=20 volume. However, i doubt very many of us would have had the guts = to do=20 that since it lost almost 3 points the day before.</FONT></SPAN></DIV> <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>Mike=20 Gibbons<BR><B>Sent:</B> Friday, August 02, 2002 1:56 AM<BR><B>To:</B>=20 canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] "Don't let A = Shakeout=20 Scare You"<BR><BR></FONT></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2>Out = here in=20 Hawaii, I don't get IBD until 2 pm and its usually late in the evening = before=20 I get around to reading it, so I apologize for bringing up yesterdays = news,=20 but this Investor's Corner article (08/01/02) really has me=20 puzzled.</FONT></SPAN></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2>What = lesson are we=20 supposed to learn from it? Discussing TOO in 1999, they say it wasn't = an ideal=20 base because it lacked a handle. Then that the breakout lacked = sufficient=20 volume. From the graph in the paper, it looks as though the pivot was = at about=20 $19. Following that Greenspan threatened raising interest rates and = the stock=20 closed lower three days in a row on significantly above average = volume,=20 closing at its low for the day on the third day at about $15.25, or = about 20%=20 below the pivot (remember there's a sell rule at 8% below the buy = price above=20 the pivot) . Although my understanding of CANSLIM and its = application is=20 still in its infancy, I'd be surprized if any CANLIMmer was still in = the stock=20 at that point, and yet they seem to be saying that one should have = hung on=20 through the shakeout for a gain on the 4th day of 29%. However , they = don't=20 say how analysis of the chart would have led one to stay=20 invested.</FONT></SPAN></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2>I'm = looking for=20 enlightenment, can someone explain what I'm missing = here?</FONT></SPAN></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial=20 size=3D2>Aloha,</FONT></SPAN></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2>Mike = Gibbons</FONT></SPAN></DIV> <DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2><A=20 = href=3D"http://www.proactech.com">http://www.proactech.com</A></FONT></SP= AN></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0002_01C239CB.6FFAB1C0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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