Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Rose Colored Goggles?
Date: Wed, 21 Aug 2002 13:04:39 -0500
Previous Article (by Date): Re: [CANSLIM] eIBD "NANCY POLCARO"
Top of Thread: Re: [CANSLIM] Rose Colored Goggles? michael_niemotka@baxter.com
Articles sorted by: [Date]
[Author]
[Subject]
Hi Mike, My quick annotations last night were on the longer term weekly charts just to show the "big picture." They were also marked incredibly fast just to draw attention to the rising RS lines and base structures along the way. Another reason for showing the weekly charts was to also show the quality of the fundamentals on each stock, easily visible to the left. On a chart like PIXR, the devil is in the details. While the longer term chart gives you perspective, the daily gives you the nitty-gritty. I've uploaded a daily with a few quick comments so you can "see" what I "see" when viewing the daily. See it at: http://WallStreet-LLC.com/canslim/PIXR082102B.jpg (daily) http://WallStreet-LLC.com/canslim/PIXR082002.jpg (weekly, posted yesterday) In general, when the handle is lengthy and in itself a base as in this case (about 12-13 weeks), you're not going to see the same kind of volume action that you would see in a 5 day handle, because the "fight" to shake out the last of the weak holders takes place over a longer period of time. What you would *not* want to see is that formation drifting up. Here, it moved sideways and in a very tight pattern in comparison to the larger base it followed. You would also want to assess the general pattern of price/volume while it was moving sideways....looking at, for example the Up/Down volume: http://WallStreet-LLC.com/canslim/PIXR082102A.jpg In this case, the U/D volume stayed very high throughout the base. All told, PIXR had far more pros than cons and did not have any obvious technical violations of handle or basing formations that would make you consider its breakout less than valid. Katherine - ----- Original Message ----- From: <michael_niemotka@baxter.com> To: <canslim@lists.xmission.com> Sent: Wednesday, August 21, 2002 12:22 PM Subject: Re: [CANSLIM] Rose Colored Goggles? | | Katherine, | | Thanks for all the charts. It really helps. I have a question on Pixar. | I see where you drew the cwh , but in the handle the volume is definitely | not drying up, like we would like to see. Any explanations on why it is | okay? (That is not meant as an attack on your view, just curious as to | your reasoning) | | MIke | | Mike Niemotka , PE | Sr. Principal Engineer | Baxter Healthcare Corporation | Route 120 & Wilson Road | Round Lake, IL 60073 | Tel (847) 270-4075 | Fax (847) 270-4525 | michael_niemotka@baxter.com | | | | Hi jans, | | I don't think you're going to get a "perfect" CANSLIM stock in all respects | coming out of such a severe Bear. Whether or not the rally has legs, there | are stocks actually working these days. The breakouts and subsequent action | are a bit tentative, but these stocks have been working. I made | some quick annotations on the stocks you mentioned just for some | prespective. Can't fault any of them from a longer term point of view. Good | news is there are another 50 set up right behind them. Now *that's* | something that's grabbed my attention. | | http://WallStreet-LLC.com/canslim/AMSG082002.jpg | http://WallStreet-LLC.com/canslim/BYD082002.jpg | http://WallStreet-LLC.com/canslim/PIXR082002.jpg | http://WallStreet-LLC.com/canslim/HRB082002.jpg | http://WallStreet-LLC.com/canslim/MCO082002.jpg | | Other recent break outs of decent stocks include: FCN, WTW, APOL, CVH, | XRAY, | AMFH, HBHC, BLUD, JASA, CSTR, JCOM, NWRE, NYCB, DORL. | | I'd sure love to see good quality stocks breaking out at 5 or 10 a | day....but time will tell. | | Katherine | | ----- Original Message ----- | From: <Spencer48@aol.com> | To: <canslim@lists.xmission.com> | Sent: Tuesday, August 20, 2002 7:44 PM | Subject: [CANSLIM] Rose Colored Goggles? | | | | 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 - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): Re: [CANSLIM] eIBD "NANCY POLCARO"
Top of Thread: Re: [CANSLIM] Rose Colored Goggles? michael_niemotka@baxter.com
Articles sorted by: [Date]
[Author]
[Subject]