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

From: "Kelly Short" <kelly.short@fw.us.neoris.com>
Subject: RE: [CANSLIM] MIK BO? Academic discussion considering M
Date: Wed, 4 Sep 2002 12:24:32 -0500
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Katherine,

Thank you as always for the information. I would not have picked up on =
the "wedging action" simply because it was not on my radar- but it has =
since been placed in the notes to look for. Also, the comment regarding =
bottoming action below the 200dma comment was interesting- I don't =
remember this rule from HTMMIS. Is this something WON teaches or =
something you have developed an eye for based on years of experience?

Also- thanks for the charts!

Kelly

- -----Original Message-----
From: Katherine Malm [mailto:kmalm@earthlink.net]
Sent: Wednesday, September 04, 2002 12:14 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] MIK BO? Academic discussion considering M


Hi Mike,

You don't know you've reached the "tip" of the wedge until the price =
falls
and "triggers" the move down. This really isn't CANSLIM, so I don't want =
to
get off topic...best for me to point you to TradingMarkets.com where you =
can
read all about shorting and covering, which is a short term trading =
tactic.
Dave Landry is a very good source and has numerous trading lessons on =
the
subject. (If you haven't already done so, you can take advantage of =
their 3
month free trial which was posted here last week. That'll give you =
access to
all their lessons and archives.) [I've no affiliation with =
TradingMarkets,
just a satisfied customer and member since early 2000]

Katherine

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, September 04, 2002 11:48 AM
Subject: Re: [CANSLIM] MIK BO? Academic discussion considering M


|
| 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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