Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Today's IBD "Would you buy this stock?"
Date: Thu, 15 Aug 2002 16:30:43 -0500
Previous Article (by Subject): Re: [CANSLIM] Today's IBD "Would you buy this stock?" Chazmoore@aol.com
Top of Thread: [CANSLIM] Today's IBD "Would you buy this stock?" "Kelly Short"
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Hi Charley and Kelly,
A couple of things related to the MTON chart:
To your point about the breakout being beyond the 5% limit of the =
pivot---this is a weekly chart, so what you are seeing is the closing =
price at the end of the week, not necessarily on the day it broke out on =
volume. You'll have to look back at a daily from 4/01 to see it more =
specifically.
To the point about the handle droop--While 12-15% is the "norm", in Bear =
markets, that droop can be as much as 30% according to WON. My =
recollection of the 4/01 time period is that we were just beginning a =
rally and so it wouldn't seem out of character for the handle to be as =
deep as it was (by my estimation looking at the chart, about 25%). As =
long as the handle forms on diminishing volume, is in the upper half of =
the cup formation and above the 200 day MA, it's valid.
Katherine
----- Original Message -----=20
From: Chazmoore@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Thursday, August 15, 2002 4:07 PM
Subject: Re: [CANSLIM] Today's IBD "Would you buy this stock?"
Kelly: Good for you. While I don't think there is anything wrong with =
a 2 week handle, WON does state it should not droop more than 15%-20%. I =
didn't study it as close as you did, but my reaction to the question was =
NO. It looked to me like the breakout far exceeded 5% and we are =
instructed not to chase it past 5%. Charley=20
----- Original Message -----=20
From: Kelly Short=20
To: canslim@lists.xmission.com=20
Sent: Thursday, August 15, 2002 3:56 PM
Subject: [CANSLIM] Today's IBD "Would you buy this stock?"
In today's "Would you buy this stock?" Metro One Telecom is =
featured. The chart shows a CwH formation and the answer to the quiz is =
"Yes," you should have bought this stock. But is this the most beautiful =
CwH formation there is? The handle continues for 14 days before the BO. =
Doesn't WON recommend 3 - 7 days? During this time, it dips 50% from the =
top of the right side. Seems that I remember WON suggesting a CwH =
formation should correct around 20%. Thoughts anyone?
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<DIV>Hi Charley and Kelly,</DIV>
<DIV> </DIV>
<DIV>A couple of things related to the MTON chart:</DIV>
<DIV> </DIV>
<DIV>To your point about the breakout being beyond the 5% limit of the=20
pivot---this is a weekly chart, so what you are seeing is the closing =
price at=20
the end of the week, not necessarily on the day it broke out on volume. =
You'll=20
have to look back at a daily from 4/01 to see it more =
specifically.</DIV>
<DIV> </DIV>
<DIV>To the point about the handle droop--While 12-15% is the "norm", in =
Bear=20
markets, that droop can be as much as 30% according to WON. My =
recollection of=20
the 4/01 time period is that we were just beginning a rally and so it =
wouldn't=20
seem out of character for the handle to be as deep as it was (by my =
estimation=20
looking at the chart, about 25%). As long as the handle forms on =
diminishing=20
volume, is in the upper half of the cup formation and above the 200 day =
MA, it's=20
valid.</DIV>
<DIV> </DIV>
<DIV>Katherine</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=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DChazmoore@aol.com=20
href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.com</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> Thursday, August 15, 2002 =
4:07=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Today's =
IBD "Would=20
you buy this stock?"</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3Darial,helvetica><FONT size=3D2>Kelly: Good for you. =
While I=20
don't think there is anything wrong with a 2 week handle, WON does =
state it=20
should not droop more than 15%-20%. I didn't study it as close as you =
did, but=20
my reaction to the question was NO. It looked to me like the breakout =
far=20
exceeded 5% and we are instructed not to chase it past 5%. =
Charley</FONT>=20
</FONT></DIV>
<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=3Dkelly.short@tx.us.neoris.com=20
href=3D"mailto:kelly.short@tx.us.neoris.com">Kelly Short</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> Thursday, August 15, =
2002 3:56=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Today's =
IBD "Would=20
you buy this stock?"</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D874174920-15082002><FONT face=3DArial =
color=3D#0000ff size=3D2>In=20
today's "Would you buy this stock?" Metro One Telecom is featured. =
The chart=20
shows a CwH formation and the answer to the quiz is "Yes," you =
should have=20
bought this stock. But is this the most beautiful CwH formation =
there is?=20
The handle continues for 14 days before the BO. Doesn't WON =
recommend 3 - 7=20
days? During this time, it dips 50% from the top of the right side. =
Seems=20
that I remember WON suggesting a CwH formation should correct around =
20%.=20
Thoughts anyone?</FONT></SPAN></DIV>
<DIV><SPAN class=3D874174920-15082002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D874174920-15082002>
<HR>
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src=3D"mhtml:mid://00000995/!CID:{E59F73E4-7D10-49F4-8FA0-62FBB917E17A}/M=
etroOne.gif"></CENTER></SPAN></DIV></BLOCKQUOTE></DIV></BLOCKQUOTE></BODY=
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Previous Article (by Subject): Re: [CANSLIM] Today's IBD "Would you buy this stock?" Chazmoore@aol.com
Top of Thread: [CANSLIM] Today's IBD "Would you buy this stock?" "Kelly Short"
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