Re: [CANSLIM] Too many CANSLIMers?

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Too many CANSLIMers?
Date: Wed, 21 Aug 2002 02:08:17 -0400

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Outside of the small / micro cap playground I like to haunt, where 10,000
shares in a day can represent a huge volume spike, the retail investors
represented on this group can make little difference in their buying power /
volume alone. But where they can make a difference is when you add in all
the other CANSLIM oriented investors that have not yet (fortunately) found
this group, or all the ones that are pure momentum players, or think they
understand CANSLIM, and thereby end up with approx the same pivot point.
Then, on top of that, think of the real elephants, the money / fund managers
sitting on the sidelines with bags of somebody else's money they want to
spend, and don't know where. If they are active practitioners of CANSLIM,
they likely they are also looking at the same pivot point, and ready to cast
millions of $$$ at it when they see a possible b/o. If the little guys all
start hitting the same pivot point, creating both volume and price movement,
then some of the elephants start stampeding. That attracts attention from
other little guys just chasing the herd, as well as other fund / money
managers, some of whom are friends with the ones that already jumped into
the water.

They don't call it herd instinct (or herd mentality, which implies wrongly
that there are any brains behind it) for nothing. Momentum is only one part
of CANSLIM. When you get both momentum and quality CANSLIM criteria, you get
the best of all worlds, of interest to the majority of potential stock
buyers (as well as some shorters).

- ----- Original Message -----
From: "Boyd" <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, August 20, 2002 1:06 PM
Subject: Re: [CANSLIM] Too many CANSLIMers?



<opinion>
Maybe in a bear M where there are few good set-ups, we small CAN SLIMers
out here in WON-land can make a difference on low-vol stocks.  WON says
it's instutions that move a stock when it is really climbing.  But I have
never completely understood how the big money plays CAN SLIM (if they do).
Do they ever buy at the pivot like us?  Surely they don't move in and out
of a stock like CAN SLIM can have us doing at times.  I thought they took
weeks to take a position?  If so, wouldn't they be the folks causing the
right side of the cup to form?  Not being an market insider, I am "clueless
in Texas."
</opinion>

Norm




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