Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] XRAY and CECO
Date: Tue, 13 Aug 2002 10:18:33 -0500
Next Article (by Subject): RE: [CANSLIM] XRAY and CECO "Mike Gibbons"
Previous Article (by Subject): RE: [CANSLIM] specialist "Edward W. Gjertsen II"
Next in Thread: RE: [CANSLIM] XRAY and CECO "Mike Gibbons"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_01C2_01C242B2.C7737640
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
HI Mike,
I can tell my response wasn't clear. Let me try again with some examples =
and articles.
In general, it's important to distinguish between a "healthy rising =
stock" and a "base." On one hand, you will have a stock, like CECO, =
which has been rising over time. Each time is rises for a while, then it =
pauses to consolidate. That pause is the "base." Each time the stock =
reaches a new high and then consolidates, it will demonstrate its =
ability to absorb the gains from the previous rise of >=3D25%. That =
pattern that you see along the rising trend line is what you want to see =
in a stock. The problem is, after the stock has done this 3 or 4 times, =
it becomes well-known and obvious, and so it is rare that it can =
continue tracing out this same rising behavior for too much longer. What =
will normally happen is that the stock will often fail in the next =
breakout and/or correct so deeply that it undercuts the low of the =
previous base. That "resets the base count" and you then start over with =
counting bases, assuming of course, that the stock *can* recover. WON =
suggests that if the correction is more than 80% that the stock is too =
badly damaged that it may not recover in any reasonable time period. =
(IBM and WMT come to mind....look back at a 10 year chart of each of =
them and notice what happened after they corrected so deeply. They =
essentially went into years of sideways movement.)
Sometimes a picture is worth a thousand words, so thought it easier to =
write up some notes. See notes on the "Healthy Rising Stock" at:
http://WallStreet-LLC.com/canslim/HealthyRisingStock.JPG
Now, far different than the healthy rising stock is the *type* of base =
that it forms while consolidating. There are many, though there are some =
that are more common, more reliable, and far easier to spot than others. =
I'd rank the ascending base as the most difficult to master. See my =
handwritten notes on types of bases at:
http://WallStreet-LLC.com/canslim/TypesOfBases.JPG
Just to be complete, I've also uploaded quite a few resources related to =
both rising stocks (base counting) and ascending bases. I figured it was =
far easier to do that than to reinvent the wheel and describe the =
ascending base in detail. See them at:
Counting bases:
http://WallStreet-LLC.com/canslim/CountingBasesHowTo.doc
http://WallStreet-LLC.com/canslim/DeepCorrResetBCount.JPG
http://WallStreet-LLC.com/canslim/CountBasesB4Buy.JPG
http://WallStreet-LLC.com/canslim/MktWashoutNewBases.JPG
Ascending bases:
http://WallStreet-LLC.com/canslim/AscendingBaseRally.JPG
http://WallStreet-LLC.com/canslim/FindAscendingBases.doc
http://WallStreet-LLC.com/canslim/BuyPointABase.doc
In summary, there is no such thing as a "long term ascending base" as =
the concept confuses a healthy rising stock pattern over a longer time =
period with the ascending base pattern, which is a particular kind of =
consolidation (>=3D6wks).=20
CECO has been exhibiting the characteristics of a "healthy rising stock" =
and is currently forming a 3rd stage base. CECO is *not* currently =
forming an ascending base. It is forming a very strange base on base =
(flat + C&H) as far as I can tell. I saw many odd patterns like this at =
the September '01 low and many of the stocks were able to recover from =
the V shaped sell off, breakout and move on. Many of the retailers, the =
gaming stocks, homebuilders, security related stocks and Aero & Defense =
come to mind.
Katherine
----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Monday, August 12, 2002 10:20 PM
Subject: RE: [CANSLIM] XRAY and CECO
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.=20
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.=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_01C2_01C242B2.C7737640
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><SPAN style=3D"mso-fareast-font-family: 'MS Mincho'">
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">HI =
Mike,</SPAN></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">I can tell my response =
wasn't=20
clear. Let me try again with some examples and =
articles.</SPAN></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">In general, it's =
important to=20
distinguish between a "healthy rising stock" and a "base." On one hand, =
you will=20
have a stock, like CECO, which has been rising over time. Each time =
is=20
rises for a while, then it pauses to consolidate. That pause is the =
"base." Each=20
time the stock reaches a new high and then consolidates, it will =
demonstrate its=20
ability to absorb the gains from the previous rise of >=3D25%. That =
pattern=20
that you see along the rising trend line is what you want to see in a =
stock. The=20
problem is, after the stock has done this 3 or 4 times, it becomes =
well-known=20
and obvious, and so it is rare that it can continue tracing out this =
same rising=20
behavior for too much longer. What will normally happen is that the =
stock will=20
often fail in the next breakout and/or correct so deeply that it =
undercuts the=20
low of the previous base. That "resets the base count" and you then =
start over=20
with counting bases, assuming of course, that the stock *can* recover. =
WON=20
suggests that if the correction is more than 80% that the stock is too =
badly=20
damaged that it may not recover in any reasonable time period. (IBM and =
WMT come=20
to mind....look back at a 10 year chart of each of them and notice what =
happened=20
after they corrected so deeply. They essentially went into years of =
sideways=20
movement.)</SPAN></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Sometimes a picture is =
worth a=20
thousand words, so thought it easier to write up some notes. See notes =
on the=20
"Healthy Rising Stock" at:</SPAN></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/HealthyRisingStock.JPG">http://=
WallStreet-LLC.com/canslim/</SPAN>HealthyRisingStock.JPG</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Now, far different than =
the healthy=20
rising stock is the *type* of base that it forms while consolidating. =
There are=20
many, though there are some that are more common, more reliable, and far =
easier=20
to spot than others. I'd rank the ascending base as the most difficult =
to=20
master. See my handwritten notes on types of bases at:</SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/TypesOfBases.JPG">http://WallSt=
reet-LLC.com/canslim/</SPAN>TypesOfBases.JPG</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Just to be complete, I've =
also=20
uploaded quite a few resources related to both rising stocks (base=20
counting) and ascending bases. I figured it was far easier to do =
that than=20
to reinvent the wheel and describe the ascending base in detail. See =
them=20
at:</SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Counting =
bases:</SPAN></P></SPAN>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/CountingBasesHowTo.doc">http://=
WallStreet-LLC.com/canslim/</SPAN>CountingBasesHowTo.doc</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/DeepCorrResetBCount.JPG">http:/=
/WallStreet-LLC.com/canslim/</SPAN>DeepCorrResetBCount.JPG</A></SPAN></P>=
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/CountBasesB4Buy.JPG">http://Wal=
lStreet-LLC.com/canslim/</SPAN>CountBasesB4Buy.JPG</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/MktWashoutNewBases.JPG">http://=
WallStreet-LLC.com/canslim/</SPAN>MktWashoutNewBases.JPG</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Ascending =
bases:</SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/AscendingBaseRally.JPG">http://=
WallStreet-LLC.com/canslim/</SPAN>AscendingBaseRally.JPG</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/FindAscendingBases.doc">http://=
WallStreet-LLC.com/canslim/</SPAN>FindAscendingBases.doc</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><A=20
href=3D"http://WallStreet-LLC.com/canslim/BuyPointABase.doc">http://WallS=
treet-LLC.com/canslim/</SPAN>BuyPointABase.doc</A></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">In summary, there is no =
such thing=20
as a "long term ascending base" as the concept confuses a healthy =
rising=20
stock pattern over a longer time period with the ascending =
base=20
pattern, which is a particular kind of consolidation=20
(>=3D6wks). </SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">CECO has been exhibiting =
the=20
characteristics of a "healthy rising stock" and is currently forming a =
3rd stage=20
base. CECO is *not* currently forming an ascending base. It is =
forming a=20
very strange base on base (flat + C&H) as far as I can tell. I saw =
many odd=20
patterns like this at the September '01 low and many of the stocks =
were=20
able to recover from the V shaped sell off, breakout and move on. Many =
of the=20
retailers, the gaming stocks, homebuilders, security related stocks and =
Aero=20
& Defense come to mind.</SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'">Katherine</SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P></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=3Dmikegibbons@proactech.com=20
href=3D"mailto:mikegibbons@proactech.com">Mike 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>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, August 12, 2002 =
10:20=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] XRAY and =
CECO</DIV>
<DIV><BR></DIV>
<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> </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=20
being higher than the preceding, which is why I call it and ascending =
base.=20
Each of the pullbacks usually ocurs due to the general market =
declining at=20
that time."</FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN> </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. It would also seem that the most recent pullback coincided =
with=20
the July selloff in the markets in agreement with the definition.=20
</FONT></SPAN></DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D760361003-13082002><FONT face=3DTahoma =
color=3D#000080=20
size=3D2>Maybe 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> </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>
<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=20
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 =
CECO<BR><BR></FONT></DIV>
<DIV>HI Mike,</DIV>
<DIV> </DIV>
<DIV>I've noticed the term "long term ascending base" coming up in =
many=20
posts 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=20
particular kind of conolidation in the stock's move. In general, a =
stock=20
will rise, then pause (base), rise, then pause, rise, then pause, =
and so on.=20
As long as the rise between consolidations is at least 25%, the next =
area of=20
consolidation is considered a new stage base. This is also the same =
reason=20
that an LLUR is not a base....it's a stock on the rise, though with =
low=20
volatility. (Sorry, Tom, just 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=20
time. A flat base for example, moves essentially sideways for at =
least 5=20
wks, the C&H or cup without handle lasts for at least 7 wks and =
sports a=20
deeper correction as the stock retraces some of the previous move, =
etc. The=20
ascending base is just an odd consolidation in that it drifts =
upward,=20
attempting to breakout 3 times. It's a subtle pattern that's hard to =
read,=20
but shouldn't be confused with a stock that is rising *between*=20
consolidations. </DIV>
<DIV> </DIV>
<DIV>I've uploaded an example on the CECO chart that shows the base, =
move=20
up, 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=20
the 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=20
Gibbons</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
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=20
observed that the longer term pattern was more like an ascending =
base. To=20
my 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> </DIV>
<DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20
class=3D700393200-13082002>I came across another stock today with =
similar=20
chart characteristics to XRAY - now in the handle of a Cwh =
formation with=20
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=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> </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=20
short and V-shaped, which I attribute to the market behavior in =
July, but=20
perhaps 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> </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></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
- ------=_NextPart_000_01C2_01C242B2.C7737640--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Subject): RE: [CANSLIM] XRAY and CECO "Mike Gibbons"
Previous Article (by Subject): RE: [CANSLIM] specialist "Edward W. Gjertsen II"
Next in Thread: RE: [CANSLIM] XRAY and CECO "Mike Gibbons"
Articles sorted by: [Date]
[Author]
[Subject]