Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Tue, 13 Aug 2002 22:46:54 -0400
Previous Article (by Author): Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) "Tom Worley"
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Nancy, retail investors don't have the staying power, by themselves, to =
keep absorbing stock from sellers. Institutionals do, as they will place =
an order at the brokerage house they use to by xxx thousands of shares =
at a limit. The brokerage house will sit there on the bid taking it in, =
occasionally jumping up and taking out a low offer that still permits =
them to meet the limit set by the institutional on an average price per =
share basis. The market will see that strength, and reconsider dumping =
stock. Another institutional may see that strength on a company they =
want, and join in adding more strength to it. But the institutionals, =
and the brokerage houses that represent them in the market place, =
usually will not go crazy and chase the price up, they will just sit =
there and support the bid. If they have done their homework, they have =
evaluated the company and already set a price they are willing to pay.
- ----- Original Message -----=20
From: NANCY POLCARO=20
To: canslim=20
Sent: Tuesday, August 13, 2002 10:10 PM
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
can you explain your statement. Why would it mean this? nancy=20
----- Original Message -----
From: Tom Worley
Sent: Tuesday, August 13, 2002 7:54 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
on the downside, often suggests the point where institutional support
exists, but only on the larger more liquid stocks.
----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, August 13, 2002 10:50 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
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<!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=20
style=3D"BORDER-RIGHT: medium none; BORDER-TOP: medium none; FONT: 10pt =
verdana; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"=20
bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D3>Nancy, retail investors don't have the =
staying=20
power, by themselves, to keep absorbing stock from sellers. =
Institutionals do,=20
as they will place an order at the brokerage house they use to by xxx =
thousands=20
of shares at a limit. The brokerage house will sit there on the bid =
taking it=20
in, occasionally jumping up and taking out a low offer that still =
permits them=20
to meet the limit set by the institutional on an average price per share =
basis.=20
The market will see that strength, and reconsider dumping stock. Another =
institutional may see that strength on a company they want, and join in =
adding=20
more strength to it. But the institutionals, and the brokerage houses =
that=20
represent them in the market place, usually will not go crazy and chase =
the=20
price up, they will just sit there and support the bid. If they have =
done their=20
homework, they have evaluated the company and already set a price they =
are=20
willing to pay.</FONT></DIV>
<DIV><FONT face=3DArial size=3D3></FONT> </DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3DZILLAGIRL@msn.com href=3D"mailto:ZILLAGIRL@msn.com">NANCY =
POLCARO</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim</A> </DIV>
<DIV><B>Sent:</B> Tuesday, August 13, 2002 10:10 PM</DIV>
<DIV><B>Subject:</B> Re: [CANSLIM] cup-without-handle; "tightness"=20
questions</DIV></DIV>
<DIV><BR></DIV>
<DIV>can you explain your statement. Why would it mean this?=20
nancy </DIV>
<DIV> </DIV>
<BLOCKQUOTE=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 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt Arial; COLOR: =
black"><B>From:</B>=20
Tom Worley</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Tuesday, August 13, 2002 =
7:54=20
AM</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>To:</B> <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re: [CANSLIM]=20
cup-without-handle; "tightness" questions</DIV>
<DIV> </DIV>on the downside, often suggests the point where =
institutional=20
support<BR>exists, but only on the larger more liquid =
stocks.<BR><BR>-----=20
Original Message -----<BR>From: <Spencer48@aol.com><BR>To:=20
<canslim@lists.xmission.com><BR>Sent: Tuesday, August 13, 2002 =
10:50=20
AM<BR>Subject: Re: [CANSLIM] cup-without-handle; "tightness"=20
questions<BR><BR><BR>Katherine:<BR><BR> =
Couldn't=20
"churning" also identify a stock which has been weak (ie. in =
a<BR>downtrend),=20
but then does not make any more headway down-and does this on<BR>heavy =
volume. Wouldn't this indicate the end of the downtrend (or=20
at<BR>least-the beginning of a consolidation, perhaps leading to the=20
stock<BR>garnering strength?).<BR><BR> =
Moreover, as=20
distribution (as you pointed out) is likely at the top =
(as<BR>indicated by the=20
hi volume and stalling); wouldn't accumulation be likely at<BR>the =
churning=20
point in the downtrend (ie. since the stock is not falling<BR>anymore =
and it=20
is not doing it on hi volume-wouln't this signify that<BR>someone is =
buying up=20
all the stock that someone else is =
selling)<BR><BR> I=20
bring up this question because I'm not sure of the answer. I=20
thought<BR>WON has said (or perhaps it was in an IBD Investors Corner =
article)=20
that<BR>"churning" can take place on the upside (to indicate future =
weakness)=20
or on<BR>the downside (to indicate future=20
strength).<BR><BR> In any event, what is your=20
experience or observation or comments and<BR>conclusions on my =
churning=20
=
conundrum.<BR><BR><BR> &nb=
sp; &nbs=
p; =20
jans<BR><BR><BR>In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern =
Standard Time,<BR>kmalm@earthlink.net writes:<BR><BR>> Long story =
short,=20
churning/stalling is in reference to action *after* a<BR>> stock or =
index=20
has been rising, nears its highs, then starts acting odd.<BR>> That =
is,=20
large volume is no longer accompanied by significant upward =
price<BR>>=20
movement. In that sense, it is subtle distribution and is a<BR>> =
sign that=20
the<BR>> stock may be topping and/or beginning a consolidating=20
period<BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email=20
"majordomo@xmission.com"<BR>-In the email body, write "subscribe =
canslim"=20
or<BR>-"unsubscribe canslim". Do not use quotes in your=20
email.<BR><BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email=20
"majordomo@xmission.com"<BR>-In the email body, write "subscribe =
canslim"=20
or<BR>-"unsubscribe canslim". Do not use quotes in your=20
email.<BR></BLOCKQUOTE></BODY></HTML>
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