Re: [CANSLIM] cup-without-handle; "tightness" questions

From: "Norman" <theboyd@tisd.net>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Wed, 7 Aug 2002 21:36:34 -0500

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Tom,

From the August 6th Investors Corner "Cup Without A Handle Can Yield Large
Profits", 8th paragraph: "Cups without handles have a somewhat higher
failure rate, but they can work."

As Ann has pointed out, I don't think the pattern is easily used to make
money but we all know how IBD uses hindsight.

norm

- ----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Wednesday, August 07, 2002 9:26 PM
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions


> Patrick and Ann,
>
> I don't recall ever hearing about a handleless cup as a valid CANSLIM
> pattern. Is this something only IBD sees, or can someone quote WON also
> supporting this as a valid pattern?
>
> ----- Original Message -----
> From: "Patrick Wahl" <pjwahl@attbi.com>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, August 07, 2002 12:30 PM
> Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
>
>
> I don't know this for sure, but I think you might be referring to an
article
> where the
> IBD pulled out an example of a stock that blasted off from a cup pattern
> without first
> forming a handle and said that not all stocks form a handle.  This is the
> sort of thing
> that IBD does that I find a little questionable ( and Duke has been good
at
> pointing
> this stuff out), and that is to do an after the fact analysis and justify
it
> on shaky
> grounds.  If a stock spiked up from a cup with no handle and then failed,
I
> could
> easily see IBD saying -see, no handle, this is the sort of thing you have
to
> watch out
> for, this stock should not have been bought.
>
> So I think the easy answer is that if it doesn't form a handle and takes
> off, let it go,
> wiat for the next one, you don't have to catch everything, look for the
> sounder
> pattern.
>
> On 7 Aug 2002 at 12:14, Ann wrote:
>
> > Maybe I didn't form my question right. How do I know, as the cup forms
its
> > right side and approaches the previous high, whether it's going to be a
> cup
> > with a handle or without a handle? What if I am waiting for a handle to
> > form, but it doesn't form and goes straight to breaking out? Then it has
> > formed a cup-without-handle, but I have missed the breakout. Or do you
> just
> > have to be there at the time it is breaking out or catch it within 5%?
>
>
>
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