Go to Jeff Salisbury LWGate Home Page.From: "Edward W. Gjertsen II" <ed@macktracks.com>
Subject: RE: [CANSLIM] Breakout Blues
Date: Wed, 21 Aug 2002 20:18:42 -0500
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Rule #1 - this is a money game. You need an "edge" to consistently make
money in the markets. CANSLIM is an edge for disciplined investors.
There are others out there who are very familiar with CANSLIM and "prey"
upon canslimers. We have seen many times where a good CANSLIM candidate
goes through a pivot (we buy) stock rallies (we're happy for the moment)
then falls 9-10%, we sell, then turns right around and rallies past our
sell point, then past the pivot point and onward to new highs. This is
especially true with smaller cap companies. These are tough times and
market makers, small hedge funds, swing and day traders need something
to subsist on. Some dine on disciplined canslimers who sell out at 8%
stop losses. There is no secret to where these points are.
Rule #2 - the failure of breakouts is a great indicator of what may be
ahead for the market. We have spun our wheels several times this year
buying breakouts in bunches only to sell out weeks later. Should we see
today's breakouts start to fail, I will be looking at shorting the QQQ,
SPY and DIA for the "new bull" has not arrived yet. I believe WON
placed full page ads in May that said the bottom was in and that the
follow through was here - not. Always let the market speak to you.
Even WON is fallible. The key is when you are wrong - be disciplined
and sell.
Ed Gjertsen II
ed@macktracks.com
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<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>Rule #1 – this is a money =
game.
You need an “edge” to consistently make money in the =
markets.
CANSLIM is an edge for disciplined investors. There are others out =
there
who are very familiar with CANSLIM and “prey” upon =
canslimers.
We have seen many times where a good CANSLIM candidate goes through a =
pivot (we
buy) stock rallies (we’re happy for the moment) then falls 9-10%, =
we
sell, then turns right around and rallies past our sell point, then past =
the
pivot point and onward to new highs. This is especially true with =
smaller
cap companies. These are tough times and market makers, small =
hedge
funds, swing and day traders need something to subsist on. Some dine on
disciplined canslimers who sell out at 8% stop losses. There is no =
secret
to where these points are.</span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'> </span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>Rule #2 – the failure of =
breakouts is
a great indicator of what may be ahead for the market. We have =
spun our
wheels several times this year buying breakouts in bunches only to sell =
out
weeks later. Should we see today’s breakouts start to fail, =
I will
be looking at shorting the QQQ, SPY and DIA for the “new =
bull” has
not arrived yet. I believe WON placed full page ads in May that =
said the
bottom was in and that the follow through was here – not. =
Always
let the market speak to you. Even WON is fallible. The key =
is when
you are wrong – be disciplined and sell.</span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'> </span></font></p>
<div>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>Ed Gjertsen II</span></font></p>
<p class=3DMsoNormal><font size=3D3 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:12.0pt;color:blue'>ed@macktracks.com</span></font></p>=
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