Re: [CANSLIM] Wedging example: CECO

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Thu, 5 Sep 2002 10:18:14 -0500

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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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|
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