[CANSLIM] Rose Colored Goggles?

From: Spencer48@aol.com
Subject: [CANSLIM] Rose Colored Goggles?
Date: Tue, 20 Aug 2002 20:44:02 EDT

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Canslimmers:

     This is a passage from Wednesday's. Big Picture:

"Despite the skittishness, emerging leaders performed well.

Moody's (MCO) broke out of an eight-week base. The bond-rating stock popped 
up 1.08 to 50.78. Volume expanded 53% above normal. Moody's most recent 
consolidation isn't as tight as its January-to-April base, which led to a 24% 
gain. But the company's fundamentals still look good. Moody's grew profit 44% 
in the latest quarter as sales rose 32%. 

H&R Block (HRB) followed through on Friday's breakout. The tax stock rallied 
1.80 to 53.15 in above-average volume. The company's fundamentals are a 
little lumpy, given the once-a-year nature of the tax business. But it still 
scores a 95 Earnings Per Share Rating. That means its growth is better than 
95% of stocks on the market.

Boyd Gaming (BOYD) resumed its breakout late in the session. The stock added 
0.62 to 16.68. Volume swelled 138% above its 50-day average.  

Pixar (PIXR) marched higher for the fifth day in a row. The animated feature 
producer has gained almost 15% since charging past its pivot point at 44.30 
on Aug. 14.

AmSurg (AMSG), which hit its first new high in 2 1/2 months on Monday, pulled 
back 1.03 to 32.02. Volume for the outpatient clinic stayed heavy."

     THESE ARE CONSIDERED THE LEADERS BY IBD????  Only AMSG has decent 
earnings and sales.  Its formation is nice, but its RS-line (not the rating) 
is lower than its previous price high.  All the others have lousy earnings 
and some have lousy charts in addition to lousy earnings.  

     Moreover, I get the impression that IBD feels that we are in a rally.  
However, when you look at the major indexes (Dow, NASDAQ, Russel 2000, S&P 
500 and 600) all of them have RS lines going lower as they roll higher.  So 
if this is a rally, I don't think it will last too long.

    This is just my opinion, but it would be nice if IBD and/WON addressed 
these divergences.  My impression is that IBD/WON wants a rally so much that 
their wishes are father to the reality.

     Am I wrong?  Katherine and Tom-or anyone who cares to comment-how do you 
see the big picture?

jans

  

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