Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] "Don't let A Shakeout Scare You"
Date: Fri, 2 Aug 2002 07:17:48 -1000
Next Article (by Subject): [CANSLIM] charts and patterns questions michael_niemotka@baxter.com
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_0047_01C239F4.B47EAF80
Content-Type: text/plain;
charset="Windows-1252"
Content-Transfer-Encoding: 7bit
Thanks Scott, you caused me to look at it again and I see what you mean. In
fact, the day of the big move was only the 4th day in the handle, so it
never met the 5 day handle rule, plus the drop to 20% of the pivot on the
third day had already made the handle suspect.
But I still don't understand which principles of their investment philosophy
they were trying to illustrate.
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Scott Gettis
Sent: Thursday, August 01, 2002 11:22 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] "Don't let A Shakeout Scare You"
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_0047_01C239F4.B47EAF80
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 6.00.2715.400" name=3DGENERATOR></HEAD>
<BODY>
<DIV><SPAN class=3D670461017-02082002><FONT face=3DArial color=3D#0000ff =
size=3D2>Thanks=20
Scott, you caused me to look at it again and I see what you mean. In =
fact, the=20
day of the big move was only the 4th day in the handle, so it never met =
the 5=20
day handle rule, plus the drop to 20% of the pivot on the third day had =
already=20
made the handle suspect.</FONT></SPAN></DIV>
<DIV><SPAN class=3D670461017-02082002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D670461017-02082002><FONT face=3DArial color=3D#0000ff =
size=3D2>But I=20
still don't understand which principles of their investment philosophy =
they were=20
trying to illustrate.</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>Scott=20
Gettis<BR><B>Sent:</B> Thursday, August 01, 2002 11:22 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> RE: [CANSLIM] "Don't let =
A=20
Shakeout Scare You"<BR><BR></FONT></DIV>
<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=20
only 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 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=20
before I get around to reading it, so I apologize for bringing up =
yesterdays=20
news, 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=20
we supposed to learn from it? Discussing TOO in 1999, they say it =
wasn't an=20
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=20
was at about $19. Following that Greenspan threatened raising =
interest rates=20
and the stock closed lower three days in a row on significantly =
above=20
average volume, closing at its low for the day on the third day at =
about=20
$15.25, or about 20% below the pivot (remember there's a sell rule =
at 8%=20
below the buy price above the pivot) . Although my =
understanding of=20
CANSLIM and its application is still in its infancy, I'd be =
surprized if any=20
CANLIMmer was still in the stock at that point, and yet they seem to =
be=20
saying that one should have hung on through the shakeout for a gain =
on the=20
4th day of 29%. However , they don't say how analysis of the chart =
would=20
have led one to stay 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=20
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=20
Gibbons</FONT></SPAN></DIV>
<DIV><SPAN class=3D360571608-02082002><FONT face=3DArial size=3D2><A =
=
href=3D"http://www.proactech.com">http://www.proactech.com</A></FONT></SP=
AN></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
- ------=_NextPart_000_0047_01C239F4.B47EAF80--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Subject): [CANSLIM] charts and patterns questions michael_niemotka@baxter.com
Articles sorted by: [Date]
[Author]
[Subject]