Re: [CANSLIM] FW: Summer Relief Rally- Is It Possible? and Energy Power in the News

From: Harvey Brion <hbrion@ieee.org>
Subject: Re: [CANSLIM] FW: Summer Relief Rally- Is It Possible? and Energy Power in the News
Date: Sun, 11 Aug 2002 07:40:17 -0700

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I wonder if the comment "The second bottom... slightly higher than the
first... is a bullish indicator" may be referring to entering a
higher-low-higher-high pattern (uptrend).  Of course, we're still
waiting for the first higher-high so it's a bit premature to call it
bullish IMO.  (Dow and S&P500 made sllightly higher highs on Friday so
it will be positive if/when NASDAQ concurs.)

Tom Worley wrote:

> Mike, what I was referring to is the following quote:This past week
> the NASDAQ broke up its' downtrend line (shown in red) for the first
> time since the sell off steepened in mid May, leading to three months
> of bloodletting on all the major indexes.
>
> In addition, the NASDAQ has recently put in a double bottom. The
> second bottom was slightly higher than the first. Technicians will
> tell you this is a bullish indicator in the short term.
>
> Last week was not the first time Naz broke up thru its downtrend line,
> even on their own chart. And I don't know of any technicians that
> prefer the second bottom to remain above the first bottom, least that
> is not how I was trained on them.  A good undercut doesn't guarantee
> there won't be a third bottom, but the failure to undercut increases
> the odds of a failed rally, and the "shortness" of the term for the
> rally is thereby very much less predictable. The only ones I know that
> would like this would be shorters looking for an improved selling
> point, before the market tanks again to even lower levels. This is
> contrary to their advice on NVDA and several other stocks, beaten down
> by the market, which they see as bounce plays (which is what I
> gathered they see on NVDA, buy for a bounce only, not because of the
> fundies).
>
> I would add that the last double bottom by NASDAQ fooled me into false
> belief (hope??) that the bottom had finally been reached. My standards
> this time are more severe, even tho I remain fully invested, and beat
> the indexes again last week.
>
>
> ----- Original Message -----
> From: Mike Gibbons
> To: canslim@lists.xmission.comSent: Saturday, August 10, 2002 5:21
> PMSubject: RE: [CANSLIM] FW: Summer Relief Rally- Is It Possible? and
> Energy Power in the News
>  Thanks Tom for explaining the apparant contradiction - I need to look
> beyond the end of my nose.Regarding the double-bottom, I presume you
> are referring to the fact that the second bottom didn't undercut the
> first. I guess a third bottom is somewhere in the NAS's future, which
> seemed to be the conclusion anyway. Aloha, Mike GibbonsProactive
> Technologies, LLChttp://www.proactech.com
>
>      -----Original Message-----
>      From: owner-canslim@lists.xmission.com
>      [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom
>      Worley
>      Sent: Saturday, August 10, 2002 11:03 AM
>      To: canslim@lists.xmission.com
>      Subject: Re: [CANSLIM] FW: Summer Relief Rally- Is It
>      Possible? and Energy Power in the News
>
>      Mike, as the newsletter says, NVDA indicated the future
>      looks bleak.  Past 4 qtrs of fundamentals are very strong,
>      but now they will be comparing to those strong fundies for
>      the next 4 qtrs. And forecast from DGO indicates a 16%
>      decline in earnings this year, and only a 7% gain from that
>      lower level next year (which won't quite get them back to
>      what they made last year).  I also disagree with some of the
>      statements made in the newsletter about the Naz chart, I am
>      not impressed with their reading, or their understanding of
>      a double bottom either.@lyris.otcjournal.com
>


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