Re: [CANSLIM] cup w/o handle

From: "Bill Triffet" <btriffet@earthlink.net>
Subject: Re: [CANSLIM] cup w/o handle
Date: Wed, 7 Aug 2002 12:30:09 -0700
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Ann,

I think the whole issue with the cup w/o a handle comes to this. Have all
the sellers finished selling? The problem with no handle is the chance of a
big pullback as the previous shareholder get out for good after sitting
through that darned cup. With a handle of lower volume, there is less risk
of a pullback. Most of the sellers are done IMO.

So, I'm no expert at this but, I might want to see the volume dryup a bit as
it climbs the right side near the top - then increased volume as it breaks
to new ground. Add to that, the fundies had better be perfect for added
insurance against the lack of a handle.

Note: I find the no handle issue fits with the double bottom charts better
as the stock's had ample time to shake out the sellers

- -Bill

- ----- Original Message -----
From: "Ann" <annholly@attbi.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, August 07, 2002 12:15 PM
Subject: Re: [CANSLIM] cup w/o handle


> Mike,
>
> Sorry if I'm missing something, but aren't you talking about cup With
> handle?
> Or are you saying that, in the cup With handle the drop in volume occurs
in
> the handle, and in the cup Without handle it occurs on the right side of
the
> cup (at least part of the time)?
>
>
> Ann
>
> ----- Original Message -----
> From: "Mike Gibbons" <mikegibbons@proactech.com>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, August 07, 2002 2:35 PM
> Subject: RE: [CANSLIM] cup w/o handle, churning
>
>
> : Hi Ann,
> :
> : Perhaps the key to getting your understanding of this nailed is to
analyze
> : the phrase from your posting "but I had in my notes ... that the volume
> : should dry up on the R-side of a Cup-without-Handle."
> :
> : As I understand it, the volume should be above the 50 ADV on at least a
> few
> : days as it comes up the right side of the cup and those days should be
> : accompanied by a price increase. Once the handle has started to form,
you
> : now want the volume to drop below the 50 ADV on most days. In
particular,
> : you don't want to see above average volume accompanied by large downward
> : price moves, as this is a sign of weakness. (Katherine pointed this out
> : earlier).
> :
> : If you run the chart selector that I posted yesterday, you will see that
> the
> : stocks selected are given a CQ rating. This is a metric that attempts to
> : quantify the qualities I mentioned in the previous paragraph. (see my
> : earlier post today also).
> :
> : 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 Ann
> : Sent: Wednesday, August 07, 2002 6:49 AM
> : To: CANSLIM Listserv
> : Subject: [CANSLIM] cup w/o handle, churning
> :
> :
> : Thanks, Charley, Mike, Patrick, Nancy, Katherine,
> :
> : This is such a great list. It's amazing to be able to post questions and
> get
> : all these prompt and helpful replies. Thank you, all.
> :
> : My questions arose, when I was looking at the charts in Chapter 13 of
> : HTMMIS. The Cup-without-Handle patterns are on pages 161-162. Some of
the
> : charts point out "strong up weeks on big volume" on the R-side of the
cup,
> : but I had in my notes (possibly from Investors' Corner, as I think
Charley
> : suggests) that the volume should dry up on the R-side of a
> : Cup-without-Handle.
> :
> : But, as I look over all the charts (and these are charts that WON picked
> : because the stocks flew after breakout), no one chart has ALL the
> : characteristics you should look for. For example, in the CSCO chart (p.
> : 158), the RS line was not at an all-time high before the stock took off
in
> : '95.
> :
> : I guess the moral of the story is that you have to take a preponderance
of
> : indicators, and not just get stuck over one of them missing. (But then,
> that
> : "one" could later prove to be your downfall!! Alas!).
> :
> : Thanks again,
> :
> : Ann
> :
> :
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