Re: [CANSLIM] MIK BO? Academic discussion considering M

From: michael_niemotka@baxter.com
Subject: Re: [CANSLIM] MIK BO? Academic discussion considering M
Date: Wed, 4 Sep 2002 11:48:00 -0500
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Thanks for the great info. Now the $20,000 question, how do you identify
the tip of the wedge (which I assume is the change point from area 2 to
area 3) so you can maximize your gain?

And how do you know when to cover?

See how I only ask the "easy questions?



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


                                                                                                                            
                    "Katherine Malm"                                                                                        
                    <kmalm@earthlink.net>         To:     canslim@lists.xmission.com                                        
                    Sent by:                      cc:                                                                       
                    owner-canslim@lists.xm        Subject:     Re: [CANSLIM] MIK BO? Academic discussion considering M      
                    ission.com                                                                                              
                                                                                                                            
                                                                                                                            
                    09/04/2002 11:23 AM                                                                                     
                    Please respond to                                                                                       
                    canslim                                                                                                 
                                                                                                                            
                                                                                                                            




Hi Mike,

Yes...that's it. "Wedging" is a pattern of increasing prices on decreasing
volume. MIK isn't a textbook case of wedging, as the volume isn't clearly
decreasing, but the volume was fairly light and then under heavy
distribution in the last couple of days in that area I identified, so I
considered it a "quasi-wedge." This wedging action is particularly
troublesome in the right side of the cup and/or in a handle because it
shows
lack of conviction as the price is rising.

I've uploaded a chart of another stock that gives a better view of some
wedging action and the subsequent price action. I can see I've cut off part
of my comments on the chart, but that last bit should read "Notice how in
area 3 the price tanks and retraces the move up." BTW, this is exactly the
sort of setup one looks for in a good short candidate (shorting as the
price
fails at the tip of the wedge)!

http://WallStreet-LLC.com/canslim/Wedging090402.jpg

Katherine


- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, September 04, 2002 10:27 AM
Subject: Re: [CANSLIM] MIK BO? Academic discussion considering M


|
| Katherine,
|
| Can you define the "wedging" action you note?  Does it mean price
increase
| with a corresponding volume decrease over a number of days?
|
| Thanks
|
|
| 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
|
|
|
|                     "Katherine Malm"
|                     <kmalm@earthlink.net>         To:
canslim@lists.xmission.com
|                     Sent by:                      cc:

|                     owner-canslim@lists.xm        Subject:     Re:
[CANSLIM] MIK BO? Academic discussion considering M
|                     ission.com
|
|
|                     09/04/2002 09:40 AM
|                     Please respond to
|                     canslim
|
|
|
|
|
|
| Hi Kelly,
|
| I've marked a chart with my interpretation of MIK's chart. See it at:
|
| http://WallStreet-LLC.com/canslim/MIK090402.jpg
|
| Katherine
|  ----- Original Message -----
|  From: Kelly Short
|  To: canslim@lists.xmission.com
|  Sent: Wednesday, September 04, 2002 9:12 AM
|  Subject: [CANSLIM] MIK BO? Academic discussion considering M
|
|  Has MIK created a CwH formation (6/10 - 8/29) hitting its pivot point on
|  8/29 and now retreating to make a handle? EPS and Revenue growth have
been
|  strong for the past three qtrs (all though last qtr's EPS was down by
|  $0.01). Volume looks suspiciously high though both in the bottom of the
|  cup and now in the handle. Since M has heartburn right now I wouldn't
|  imagine trading in it (given my level of expertise). Thoughts?
|
|  Kelly
|
|
|
|
|
| -
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| -In the email body, write "subscribe canslim" or
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