Re: [CANSLIM] Wedging example: CECO

From: "Dan Forant" <dforant1@nycap.rr.com>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Thu, 5 Sep 2002 13:40:36 -0400
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Mike,

Yes. If for example RSI or volume is running negative while the chart is
positive, there may be a reversal. However there are other signs to look for
such as chart patterns that foresee a reversal or continuation. CANSLIM is
one of the safest ways to go, providing M is in agreement. Make sure your
informed with other trading techniques before venturing. Or paper trade for
awhile. CANSLIM requires fundamental expertise. Short term trading (long &
short) technical analysis. Stockchart.com has an excellent chart school.
Good luck.

DanF

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, September 05, 2002 12:53 PM
Subject: Re: [CANSLIM] Wedging example: CECO


>
> Is negative divergence a good sign to spot a good short candidate?
>
>
> 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] Wedging example: CECO
>                     ission.com
>
>

>                     09/05/2002 10:18 AM
>                     Please respond to
>                     canslim
>
>
>
>
>
>
> Hi Dan,
>
> Absolutely and good point...just a specific kind of divergence, i.e. Price
> v. Volume action.
>
> CANSLIM has several good divergence indicators such as price rising while
> the RS Line is nonconfirming...i.e. diverging...price moving up and the RS
> Line moving down. (negative divergence) A good positive divergence
> indicator
> is price falling back or moving sideways with the RS line moving up. Good
> indication that this stock is building steam and outperforming relative to
> the market, despite the price action.
>
> Katherine
>
> ----- Original Message -----
> From: "Dan Forant" <dforant1@nycap.rr.com>
> To: <canslim@lists.xmission.com>
> Sent: Thursday, September 05, 2002 9:51 AM
> Subject: Re: [CANSLIM] Wedging example: CECO
>
>
> | Also divergence?
> |
> | DanF
> | ----- Original Message -----
> | From: "Katherine Malm" <kmalm@earthlink.net>
> | To: <canslim@lists.xmission.com>
> | Sent: Thursday, September 05, 2002 10:41 AM
> | Subject: Re: [CANSLIM] Wedging example: CECO
> |
> |
> | > Here's a good wedging example:
> | > http://WallStreet-LLC.com/canslim/PHA090402.jpg
> | >
> | > ----- Original Message -----
> | > From: "Katherine Malm" <kmalm@earthlink.net>
> | > To: <canslim@lists.xmission.com>
> | > Sent: Thursday, September 05, 2002 9:37 AM
> | > Subject: Re: [CANSLIM] Wedging example: CECO
> | >
> | >
> | > | Hi Kelly,
> | > |
> | > | For the most part, the action on the right side of CECO's "V" cup
was
> | > | wedging, just as you noted. You had to pick the toughest chart in
the
> | > | *universe* though.... Prior to that sudden V-cup, the basing action
> was
> | > | actually constructive. Since then, it's pretty much a nightmare of
> | > activity
> | > | and very difficult to read. The first area you marked as a pivot is
> iffy
> | > for
> | > | 2 reasons. First, the base, having been so deep, has to be at least
6
> | > weeks
> | > | in length to be valid. That means the earliest a valid pivot could
> form
> | > | would be about 8/2. You can see the action there is a little
suspect,
> | > | forming a sloppy handle at best. In the handle itself, you actually
> want
> | > to
> | > | see volume dry up, but the problem is that this stock took a big
> plunge
> | at
> | > | the start of the handle. One could certainly argue that the handle
> | "moved
> | > | sideways" but I'd be disinclined to do so because of the wedging
> action
> | to
> | > | get there.  That, combined with a very low volume breakout attempt
on
> | 8/15
> | > | just seals the deal...this stock didn't want to go *anywhere.* I'll
> bet
> | > the
> | > | strong action in the group has had more to do with it's ability to
> hang
> | in
> | > | there than anything else. I wouldn't, as a result look at the high
> 8/16
> | as
> | > a
> | > | "pivot" but instead a pull back into the base. The only thing that
> can
> | > save
> | > | CECO at this point is a nice tight sideways consolidation on quiet
> | volume.
> | > | If it can do that, then I'd say it's ready to move on. If it stays
> wide
> | > and
> | > | loose as it's been, then hasta la vista baby.
> | > |
> | > | Katherine
> | > | ----- Original Message -----
> | > | From: "Kelly Short" <kshort@kellyrshort.com>
> | > | To: <canslim@lists.xmission.com>
> | > | Sent: Wednesday, September 04, 2002 8:34 PM
> | > | Subject: [CANSLIM] Wedging example: CECO
> | > |
> | > |
> | > | | Katherine,
> | > | |
> | > | | To continue your point on wedging- would this stock be an example
> of
> | > | wedging
> | > | | action?
> | > | |
> | > | | http://www.kellyrshort.com/canslim/CECOwedgeexample.gif
> | > | |
> | > | | Kelly
> | > | |
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