Go to Jeff Salisbury LWGate Home Page.From: "NANCY POLCARO" <ZILLAGIRL@msn.com>
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
Date: Tue, 13 Aug 2002 20:14:55 -0700
Previous Article (by Subject): Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) "Tom Worley"
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Thanks Tom-I know I,m asking a lot of questions most people know already =
but I feel like I,m learning a lot tonight. Appreciate your time. nanc=
y =20
=20
- ----- Original Message -----
From: Tom Worley
Sent: Tuesday, August 13, 2002 7:52 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions
=20
Nancy, retail investors don't have the staying power, by themselves, to k=
eep absorbing stock from sellers. Institutionals do, as they will place a=
n 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, occa=
sionally 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 ba=
sis. The market will see that strength, and reconsider dumping stock. Ano=
ther 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 craz=
y and chase the price up, they will just sit there and support the bid. I=
f they have done their homework, they have evaluated the company and alre=
ady set a price they are willing to pay.
=20
- ----- 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
=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
=20
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. i=
n 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 thou=
ght
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 pr=
ice
> 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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<HTML><BODY BGCOLOR=3D"#ffffff" STYLE=3D"font:10pt verdana; border:none;b=
ackground-color:#ffffff; "><DIV>Thanks Tom-I know I,m asking a lot of que=
stions most people know already but I feel like I,m learning a lot =
tonight. Appreciate your time. nancy </DIV> <DIV> <=
/DIV> <BLOCKQUOTE 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"BA=
CKGROUND: #e4e4e4; FONT: 10pt Arial; COLOR: black"><B>From:</B> Tom Worle=
y</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Tuesday, August 13, =
2002 7:52 PM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> canslim@lis=
ts.xmission.com</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re:=
[CANSLIM] cup-without-handle; "tightness" questions</DIV> <DIV> </D=
IV> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></ST=
YLE> <DIV><FONT face=3DArial size=3D3>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 the=
y 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 institu=
tional on an average price per share basis. The market will see that stre=
ngth, and reconsider dumping stock. Another institutional may see that st=
rength on a company they want, and join in adding more strength to it. Bu=
t the institutionals, and the brokerage houses that represent them in the=
market place, usually will not go crazy and chase the price up, they wil=
l just sit there and support the bid. If they have done their homework, t=
hey have evaluated the company and already set a price they are willing t=
o pay.</FONT></DIV> <DIV><FONT face=3DArial size=3D3></FONT> </DIV> =
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- <DIV style=3D=
"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A title=3DZILLAGIR=
L@msn.com href=3D"mailto:ZILLAGIRL@msn.com">NANCY POLCARO</A> </DIV> <DIV=
><B>To:</B> <A title=3Dcanslim@lists.xmission.com 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-ha=
ndle; "tightness" questions</DIV></DIV> <DIV><BR></DIV> <DIV>can you expl=
ain your statement. Why would it mean this? nancy </DIV> <DIV>=
</DIV> <BLOCKQUOTE style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; =
MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DI=
V style=3D"FONT: 10pt Arial">----- Original Message -----</DIV> <DIV styl=
e=3D"BACKGROUND: #e4e4e4; FONT: 10pt Arial; COLOR: black"><B>From:</B> To=
m Worley</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Tuesday, Augu=
st 13, 2002 7:54 AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> <A h=
ref=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A><=
/DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> Re: [CANSLIM] cup-w=
ithout-handle; "tightness" questions</DIV> <DIV> </DIV>on the downsi=
de, often suggests the point where institutional support<BR>exists, but o=
nly on the larger more liquid stocks.<BR><BR>----- Original Message -----=
<BR>From: <Spencer48@aol.com><BR>To: <canslim@lists.xmission.com=
><BR>Sent: Tuesday, August 13, 2002 10:50 AM<BR>Subject: Re: [CANSLIM]=
cup-without-handle; "tightness" questions<BR><BR><BR>Katherine:<BR><BR>&=
nbsp; Couldn't "churning" also identify a stock which h=
as been weak (ie. in a<BR>downtrend), but then does not make any more hea=
dway down-and does this on<BR>heavy volume. Wouldn't this indicate =
the end of the downtrend (or at<BR>least-the beginning of a consolidation=
, perhaps leading to the stock<BR>garnering strength?).<BR><BR> &nbs=
p; Moreover, as distribution (as you pointed out) is likely a=
t the top (as<BR>indicated by the hi volume and stalling); wouldn't accum=
ulation be likely at<BR>the churning point in the downtrend (ie. since th=
e stock is not falling<BR>anymore and it is not doing it on hi volume-wou=
ln't this signify that<BR>someone is buying up all the stock that someone=
else is selling)<BR><BR> I bring up this questio=
n because I'm not sure of the answer. I thought<BR>WON has said (or=
perhaps it was in an IBD Investors Corner article) that<BR>"churning" ca=
n take place on the upside (to indicate future weakness) or on<BR>the dow=
nside (to indicate future strength).<BR><BR> In a=
ny event, what is your experience or observation or comments and<BR>concl=
usions on my churning conundrum.<BR><BR><BR>  =
; =
jans<BR><BR><BR>In=
a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time,<BR>km=
alm@earthlink.net writes:<BR><BR>> Long story short, churning/stalling=
is in reference to action *after* a<BR>> stock or index has been risi=
ng, nears its highs, then starts acting odd.<BR>> That is, large volum=
e is no longer accompanied by significant upward price<BR>> movement. =
In that sense, it is subtle distribution and is a<BR>> sign that the<B=
R>> stock may be topping and/or beginning a consolidating period<BR><B=
R><BR><BR>-<BR>-To subscribe/unsubscribe, email "majordomo@xmission.com"<=
BR>-In the email body, write "subscribe canslim" or<BR>-"unsubscribe cans=
lim". Do not use quotes in your email.<BR><BR><BR><BR><BR>-<BR>-To =
subscribe/unsubscribe, email "majordomo@xmission.com"<BR>-In the email bo=
dy, write "subscribe canslim" or<BR>-"unsubscribe canslim". Do not =
use quotes in your email.<BR></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Previous Article (by Subject): Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) "Tom Worley"
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