RE: [CANSLIM] XRAY and CECO

From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] XRAY and CECO
Date: Mon, 12 Aug 2002 17:20:44 -1000
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Hi Katherine,

I just opened my brand new copy of HTMMIS v 3 and found on P. 137-138 the topic "Ascending Base". The definition is somewhat similar
to what you describe:- "Ascending Bases, like flat bases, occur midway along a move up after a stock has broken out of a
cup-with-handle or double-bottom base. It has three pullbacks from 10% to 20% with each low point during the sell-of in price being
higher than the preceding, which is why I call it and ascending base. Each of the pullbacks usually ocurs due to the general market
declining at that time."

Looking at your annotated chart, it would seem CECO fits this definition. It would also seem that the most recent pullback coincided
with the July selloff in the markets in agreement with the definition.

Maybe CECO is one to watch. Any other views?

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 Katherine Malm
  Sent: Monday, August 12, 2002 3:52 PM
  To: canslim@lists.xmission.com
  Subject: Re: [CANSLIM] XRAY and CECO


  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.

  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 -----
    From: Mike Gibbons
    To: canslim@lists.xmission.com
    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=CECO) 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.

    Comments anyone?

    Aloha,

    Mike Gibbons
    Proactive Technologies, LLC
    http://www.proactech.com


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<BODY bgColor=3D#ffffff>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080 size=3D2>Hi=20
Katherine,</FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080 size=3D2>I=20
just opened my brand new copy of HTMMIS v 3 and found on P. 137-138 the =
topic=20
"Ascending Base". The definition is somewhat similar to what you =
describe:-=20
"Ascending Bases, like flat bases, occur midway along a move up after a =
stock=20
has broken out of a cup-with-handle or double-bottom base. It has three=20
pullbacks from 10% to 20% with each low point during the sell-of in =
price being=20
higher than the preceding, which is why I call it and ascending base. =
Each of=20
the pullbacks usually ocurs due to the general market declining at that=20
time."</FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2>Looking at your annotated chart, it would seem CECO fits this =
definition.=20
It would also seem that the most recent pullback coincided with the July =
selloff=20
in the markets in agreement with the definition. </FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080 size=3D2>Maybe=20
CECO is one to watch. Any other views?</FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DTahoma color=3D#000080 size=3D2></FONT>&nbsp;</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>
<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>Katherine =

  Malm<BR><B>Sent:</B> Monday, August 12, 2002 3:52 PM<BR><B>To:</B>=20
  canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] XRAY and=20
  CECO<BR><BR></FONT></DIV>
  <DIV>HI Mike,</DIV>
  <DIV>&nbsp;</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>&nbsp;</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=20
  rise 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=20
  a base....it's a stock on the rise, though with low volatility. =
(Sorry, Tom,=20
  just a point on which we don't agree.)</DIV>
  <DIV>&nbsp;</DIV>
  <DIV>The base normally happens when the stock makes a new high, then =
falls=20
  and/or&nbsp;refuses to continue the up move&nbsp;for&nbsp;some period =
of time.=20
  A flat base for example, moves essentially sideways for at least 5 =
wks, the=20
  C&amp;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>&nbsp;</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>&nbsp;</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>&nbsp;</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=20
    Gibbons</A> </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>=
=20
    </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=20
    surprize, the XRAY breakout hasn't failed yet, although it hasn't =
been=20
    strong either, and may be in the process of forming another=20
    handle.</SPAN></FONT></DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20
    class=3D700393200-13082002></SPAN></FONT>&nbsp;</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&nbsp;- but the longer =
term=20
    pattern looks like an ascending base.</SPAN></FONT></DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20
    class=3D700393200-13082002></SPAN></FONT>&nbsp;</DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20
    class=3D700393200-13082002>The CwH pattern is not ideal with the cup =
too short=20
    and V-shaped, which I attribute to the market behavior in July, but =
perhaps=20
    its on its way to resuming the long term ascending base pattern.=20
    </SPAN></FONT></DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20
    class=3D700393200-13082002></SPAN></FONT>&nbsp;</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>&nbsp;</DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 =
size=3D2>Aloha,</FONT></DIV>
    <DIV><FONT face=3DTahoma color=3D#000080 =
size=3D2></FONT>&nbsp;</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>&nbsp;</DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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