Re: [CANSLIM] COLM

From: Kent Norman <kent_norman@yahoo.com>
Subject: Re: [CANSLIM] COLM
Date: Wed, 11 Sep 2002 15:52:45 -0700 (PDT)

Next Article (by Subject): Re: [CANSLIM] COLM "Katherine Malm"
Previous Article (by Subject): Re: [CANSLIM] COLM "Patrick Wahl"
Top of Thread: Re: [CANSLIM] COLM "Patrick Wahl"
Next in Thread: Re: [CANSLIM] COLM "Katherine Malm"
Articles sorted by: [Date] [Author] [Subject]

Please set me straight if the following is in error:

(Assuming a downward price pattern )

The problem with a price and volume is that it only shows how many
shares traded at a certain price. 

When vol decreases, we interpret it as selling pressure diminishing.
Looking at the old prices, we assume there is overhead supply waiting
to bail out if the price ever gets near break even (could be a faulty
assumption).

What we don't see is how many shares bought at some price have really
been sold at a loss, thus decreasing actual overhead supply.

It would be nice to see how many shares still exist at each buy point
in the past. Even better to see the shares that are inclined to sell on
the way up and those that would hold on for the long run.

Regards
Kent Norman

- --- Patrick Wahl <pjwahl@attbi.com> wrote:
> Its still valid though, isn't it?  The idea of overhead supply is
> that all those people 
> who bought at old highs are just sitting there ready to get out at
> break even if the 
> price ever gets back there, I would think that is still the situation
> after a year, 
> although as time passes I suppose there is some share turnover as
> people just give 
> up.  If this seems incorrect, let me know why.
> 
> On 11 Sep 2002 at 12:55, Jack Tencza wrote:
> 
> > Patrick, Why the overhead supply comment when it
> > hasn't been that high since 7/01? Thanks, Jack
> 
> 
> 
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your email.

=====
There are 3 kinds of people in the world. Those who can count and those who can't.

__________________________________________________
Yahoo! - We Remember
9-11: A tribute to the more than 3,000 lives lost
http://dir.remember.yahoo.com/tribute

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.