Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: -Fw: [CANSLIM] cup-without-handle; "tightness" questions
Date: Tue, 13 Aug 2002 14:06:31 -0500
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Hi jans, Just read through my response again and realized I'd chosen my words badly. In the last paragraph, I was referring the "collective you" and not "you" personally. Sorry about that! Katherine - ----- Original Message ----- From: "Katherine Malm" <kmalm@earthlink.net> To: <canslim@lists.xmission.com> Sent: Tuesday, August 13, 2002 1:52 PM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions | Hi jans, | | That's my understanding as well. Can't recall if WON uses the term | "churning" at the lows or not, but either way, I've read quite a few | articles that indicate that may very well be a sign that the stock is | refusing to go any lower. It's the clinical opposite of churning at the | highs, were continued activity indicates that there are plenty of sellers to | match any eager new buyers. Another good sign of bottoming is a "tail up", | where you have a large range day around the bottom on high volume, with | price closing near the top of the range. There are plenty of those examples | at the September and July lows. (And by the way, the same "tail down" will | often occur at a top, often times in conjunction with a climax top.) | | I think in general, that if you were to get in the habit of taking every | chart and turning it upside down, you'd see the patterns to the upside and | the downside are identical. | | Katherine | | ----- Original Message ----- | From: <Spencer48@aol.com> | To: <canslim@lists.xmission.com> | Sent: Tuesday, August 13, 2002 9:50 AM | Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions | | | | Katherine: | | | | Couldn't "churning" also identify a stock which has been weak (ie. in | a downtrend), but then does not make any more headway down-and does this on | heavy volume. Wouldn't this indicate the end of the downtrend (or at | least-the beginning of a consolidation, perhaps leading to the stock | garnering strength?). | | | | Moreover, as distribution (as you pointed out) is likely at the top | (as indicated by the hi volume and stalling); wouldn't accumulation be | likely at the churning point in the downtrend (ie. since the stock is not | falling anymore and it is not doing it on hi volume-wouln't this signify | that someone is buying up all the stock that someone else is selling) | | | | I bring up this question because I'm not sure of the answer. I | thought WON has said (or perhaps it was in an IBD Investors Corner article) | that "churning" can take place on the upside (to indicate future weakness) | or on the downside (to indicate future strength). | | | | In any event, what is your experience or observation or comments and | conclusions on my churning conundrum. | | | | | | jans | | | | | | In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time, | kmalm@earthlink.net writes: | | | | > Long story short, churning/stalling is in reference to action *after* a | | > stock or index has been rising, nears its highs, then starts acting odd. | | > That is, large volume is no longer accompanied by significant upward | price | | > movement. In that sense, it is subtle distribution and is a | | > sign that the | | > stock may be topping and/or beginning a consolidating period | | | | | | | | - | | -To subscribe/unsubscribe, email "majordomo@xmission.com" | | -In the email body, write "subscribe canslim" or | | -"unsubscribe canslim". Do not use quotes in your email. | | | - | -To subscribe/unsubscribe, email "majordomo@xmission.com" | -In the email body, write "subscribe canslim" or | -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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