Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Wedging example: CECO
Date: Sun, 8 Sep 2002 08:20:35 -0500
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May as well add this to the reply, from today's "Ask Bill" Column:
=20
Question: What determines whether a handle is sloping up or down, =
the highs or lows of the handle? =20
- Submitted from Chicago, Ill. =20
=20
Answer: Ideally, the handle should drift downward along both its =
high and lows points. If the lows drift downward while the highs are =
basically flat, that's not necessarily a bad thing, although it's =
something to treat cautiously. If the lows drift downward but the highs =
drift up, this could indicate looseness in the handle, which is not =
constructive action. These are just general observations about how a =
handle should look like. The most important thing to avoid is a handle =
that consistently drifts upward along its price lows. These patterns =
have a much higher probability of failing when the stock breaks out.=20
=20
- ----- Original Message -----=20
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,
|=20
| 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.
|=20
| 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
|=20
|=20
| | Katherine,
| |
| | To continue your point on wedging- would this stock be an example of
| wedging
| | action?
| |
| | http://www.kellyrshort.com/canslim/CECOwedgeexample.gif
| |
| | Kelly
| |
| | -
| | -To subscribe/unsubscribe, email "majordomo@xmission.com"
| | -In the email body, write "subscribe canslim" or
| | -"unsubscribe canslim". Do not use quotes in your email.
|=20
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<BODY>
<DIV>May as well add this to the reply, from today's "Ask Bill" =
Column:</DIV>
<DIV> </DIV>
<DIV>
<TABLE cellSpacing=3D0 cellPadding=3D0 width=3D"80%" border=3D0>
<TBODY>
<TR>
<TD vAlign=3Dtop colSpan=3D2></TD><!--<td align=3D"center" =
rowspan=3D"3" class=3D"txtsubxsml"><font size=3D"1">
<a href=3D"../about/WJO.asp"><img src=3D"../images/staWJO2.gif" =
width=3D"59" height=3D"85" border=3D"0" alt=3D"William J. O'Neil"><br>
<u>William J. O'Neil</u></a><br>
<nobr>Chairman & Founder<br>
Investor's Business Daily</nobr></font></td>--></TR>
<TR>
<TD class=3Dcopy vAlign=3Dtop> Question: What determines =
whether a handle=20
is sloping up or down, the highs or lows of the handle? </TD>
<TD> </TD></TR>
<TR>
<TD class=3Dcopy vAlign=3Dbottom =
align=3Dright>- Submitted from=20
Chicago, Ill. </TD>
<TD> </TD></TR>
<TR>
<TD class=3Dcopy vAlign=3Dtop colSpan=3D2>
<DIV> <BR>
<SCRIPT language=3DJavaScript>
<!--
OAS_AD('www.investors.com/AskBill250', 'x17');
//-->
</SCRIPT>
<SCRIPT language=3DJavaScript1.1=20
=
src=3D"http://oascentral.investors.com/RealMedia/ads/adstream_jx.ads/www.=
investors.com/AskBill250/1619235933@x17?_RM_HTML_TARGET_=3D_blank"></SCRI=
PT>
Answer: <A=20
=
href=3D"http://oascentral.investors.com/RealMedia/ads/click_lx.ads/www.in=
vestors.com/AskBill250/680603479/x17/Investors/BCN2002060020_Fisher_Sep25=
0_AB/Fisher_SqMod_S2.gif/63376165306635393364366532633030"=20
target=3D_blank></A> Ideally, the handle should drift downward =
along both=20
its high and lows points. If the lows drift downward while the =
highs are=20
basically flat, that's not necessarily a bad thing, although it's=20
something to treat cautiously. If the lows drift downward but the =
highs=20
drift up, this could indicate looseness in the handle, which is =
not=20
constructive action. These are just general observations about how =
a=20
handle should look like. The most important thing to avoid is a =
handle=20
that consistently drifts upward along its price lows. These =
patterns have=20
a much higher probability of failing when the stock breaks out. =
</DIV>
<DIV> </DIV>
<DIV> </DIV></TD></TR></TBODY></TABLE></DIV>
<DIV>----- Original Message -----=20
<DIV>From: "Katherine Malm" <<A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>></DIV>
<DIV>To: <<A=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
></DIV>
<DIV>Sent: Thursday, September 05, 2002 9:37 AM</DIV>
<DIV>Subject: Re: [CANSLIM] Wedging example: CECO</DIV></DIV>
<DIV><BR></DIV>| Hi Kelly,<BR>| <BR>| For the most part, the action on =
the right=20
side of CECO's "V" cup was<BR>| wedging, just as you noted. You had to =
pick the=20
toughest chart in the<BR>| *universe* though.... Prior to that sudden =
V-cup, the=20
basing action was<BR>| actually constructive. Since then, it's pretty =
much a=20
nightmare of activity<BR>| and very difficult to read. The first area =
you marked=20
as a pivot is iffy for<BR>| 2 reasons. First, the base, having been so =
deep, has=20
to be at least 6 weeks<BR>| in length to be valid. That means the =
earliest a=20
valid pivot could form<BR>| would be about 8/2. You can see the action =
there is=20
a little suspect,<BR>| forming a sloppy handle at best. In the handle =
itself,=20
you actually want to<BR>| see volume dry up, but the problem is that =
this stock=20
took a big plunge at<BR>| the start of the handle. One could certainly =
argue=20
that the handle "moved<BR>| sideways" but I'd be disinclined to do so =
because of=20
the wedging action to<BR>| get there. That, combined with a very =
low=20
volume breakout attempt on 8/15<BR>| just seals the deal...this stock =
didn't=20
want to go *anywhere.* I'll bet the<BR>| strong action in the group has =
had more=20
to do with it's ability to hang in<BR>| there than anything else. I =
wouldn't, as=20
a result look at the high 8/16 as a<BR>| "pivot" but instead a pull back =
into=20
the base. The only thing that can save<BR>| CECO at this point is a nice =
tight=20
sideways consolidation on quiet volume.<BR>| If it can do that, then I'd =
say=20
it's ready to move on. If it stays wide and<BR>| loose as it's been, =
then hasta=20
la vista baby.<BR>| <BR>| Katherine<BR>| ----- Original Message =
- -----<BR>| From:=20
"Kelly Short" <<A=20
href=3D"mailto:kshort@kellyrshort.com">kshort@kellyrshort.com</A>><BR>=
| To:=20
<<A=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR>|=20
Sent: Wednesday, September 04, 2002 8:34 PM<BR>| Subject: [CANSLIM] =
Wedging=20
example: CECO<BR>| <BR>| <BR>| | Katherine,<BR>| |<BR>| | To continue =
your point=20
on wedging- would this stock be an example of<BR>| wedging<BR>| | =
action?<BR>|=20
|<BR>| | <A=20
href=3D"http://www.kellyrshort.com/canslim/CECOwedgeexample.gif">http://w=
ww.kellyrshort.com/canslim/CECOwedgeexample.gif</A><BR>|=20
|<BR>| | Kelly<BR>| |<BR>| | -<BR>| | -To subscribe/unsubscribe, email =
"<A=20
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>| =
| -In the=20
email body, write "subscribe canslim" or<BR>| | -"unsubscribe =
canslim". Do=20
not use quotes in your email.<BR>| </BODY></HTML>
- ------=_NextPart_000_06FD_01C25710.9AF33AC0--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
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Next in Thread: Re: [CANSLIM] Wedging example: CECO "Tom Worley"
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