Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] XRAY and CECO
Date: Mon, 12 Aug 2002 20:52:14 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_009B_01C24242.23735170 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable HI Mike, I've noticed the term "long term ascending base" coming up in many posts = lately, so thought I'd make comment on that concept. There's actually no such thing, as "ascending base" is a very particular = kind of conolidation in the stock's move. In general, a stock will rise, = then pause (base), rise, then pause, rise, then pause, and so on. As = long as the rise between consolidations is at least 25%, the next area = of consolidation is considered a new stage base. This is also the same = reason that an LLUR is not a base....it's a stock on the rise, though = with low volatility. (Sorry, Tom, just a point on which we don't agree.) The base normally happens when the stock makes a new high, then falls = and/or refuses to continue the up move for some period of time. A flat = base for example, moves essentially sideways for at least 5 wks, the C&H = or cup without handle lasts for at least 7 wks and sports a deeper = correction as the stock retraces some of the previous move, etc. The = ascending base is just an odd consolidation in that it drifts upward, = attempting to breakout 3 times. It's a subtle pattern that's hard to = read, but shouldn't be confused with a stock that is rising *between* = consolidations.=20 I've uploaded an example on the CECO chart that shows the base, move up, = base, move up, etc. http://WallStreet-LLC.com/canslim/CECO081202.jpg Please note that I marked the chart quickly, so the circled areas for = the base are "general" and not exact for each base formation. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Monday, August 12, 2002 7:54 PM Subject: [CANSLIM] XRAY and CECO When I brought up XRAY last week, Winston observed that the longer = term pattern was more like an ascending base. To my surprize, the XRAY = breakout hasn't failed yet, although it hasn't been strong either, and = may be in the process of forming another handle. I came across another stock today with similar chart characteristics = to XRAY - now in the handle of a Cwh formation with good CANSLIM = characteristics = (http://www.cwhcharts.com/canslim/fuzzy_canslim.php?symbol=3DCECO) = except for v. high institutional ownership - but the longer term pattern = looks like an ascending base. The CwH pattern is not ideal with the cup too short and V-shaped, = which I attribute to the market behavior in July, but perhaps its on its = way to resuming the long term ascending base pattern.=20 Comments anyone? Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com - ------=_NextPart_000_009B_01C24242.23735170 Content-Type: text/html; charset="iso-8859-1" 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=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>HI Mike,</DIV> <DIV> </DIV> <DIV>I've noticed the term "long term ascending base" coming up in many = posts=20 lately, so thought I'd make comment on that concept.</DIV> <DIV> </DIV> <DIV>There's actually no such thing, as "ascending base" is a very = particular=20 kind of conolidation in the stock's move. In general, a stock will rise, = then=20 pause (base), rise, then pause, rise, then pause, and so on. As long as = the rise=20 between consolidations is at least 25%, the next area of consolidation = is=20 considered a new stage base. This is also the same reason that an LLUR = is not a=20 base....it's a stock on the rise, though with low volatility. (Sorry, = Tom, just=20 a point on which we don't agree.)</DIV> <DIV> </DIV> <DIV>The base normally happens when the stock makes a new high, then = falls=20 and/or refuses to continue the up move for some period of = time. A=20 flat base for example, moves essentially sideways for at least 5 wks, = the=20 C&H or cup without handle lasts for at least 7 wks and sports a = deeper=20 correction as the stock retraces some of the previous move, etc. The = ascending=20 base is just an odd consolidation in that it drifts upward, attempting = to=20 breakout 3 times. It's a subtle pattern that's hard to read, but = shouldn't be=20 confused with a stock that is rising *between* consolidations. </DIV> <DIV> </DIV> <DIV>I've uploaded an example on the CECO chart that shows the base, = move up,=20 base, move up, etc.</DIV> <DIV><A=20 href=3D"http://WallStreet-LLC.com/canslim/CECO081202.jpg">http://WallStre= et-LLC.com/canslim/CECO081202.jpg</A></DIV> <DIV> </DIV> <DIV>Please note that I marked the chart quickly, so the circled areas = for the=20 base are "general" and not exact for each base formation.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE dir=3Dltr=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dmike@proactech.com href=3D"mailto:mike@proactech.com">Mike = Gibbons</A>=20 </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, August 12, 2002 = 7:54=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] XRAY and = CECO</DIV> <DIV><BR></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002>When I brought up XRAY last week, Winston = observed=20 that the longer term pattern was more like an ascending base. To my = surprize,=20 the XRAY breakout hasn't failed yet, although it hasn't been strong = either,=20 and may be in the process of forming another = handle.</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN = class=3D700393200-13082002>I=20 came across another stock today with similar chart characteristics to = XRAY -=20 now in the handle of a Cwh formation with good CANSLIM characteristics = (<A=20 = href=3D"http://www.cwhcharts.com/canslim/fuzzy_canslim.php?symbol=3DCECO"= >http://www.cwhcharts.com/canslim/fuzzy_canslim.php?symbol=3DCECO</A>)=20 except for v. high institutional ownership - but the longer term = pattern=20 looks like an ascending base.</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN = class=3D700393200-13082002>The=20 CwH pattern is not ideal with the cup too short and V-shaped, which I=20 attribute to the market behavior in July, but perhaps its on its way = to=20 resuming the long term ascending base pattern. </SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002>Comments anyone?</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D700393200-13082002></SPAN></FONT><FONT face=3DTahoma = color=3D#000080=20 size=3D2><SPAN class=3D700393200-13082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Aloha,</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Mike = Gibbons</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Proactive = Technologies,=20 LLC</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080=20 size=3D2>http://www.proactech.com</FONT></DIV> <DIV> </DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_009B_01C24242.23735170-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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