Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] IBD Weblink
Date: Fri, 11 Oct 2002 18:09:12 -0500
Next Article (by Date): Re: [CANSLIM] What's still strong? "Katherine Malm"
Previous Article (by Date): RE: [CANSLIM] IBD Weblink "Mike Gibbons"
Top of Thread: Re: [CANSLIM] IBD Weblink Spencer48@aol.com
Next in Thread: RE: [CANSLIM] IBD Weblink Chris Dempsey
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_014D_01C27151.4D4A2670
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Hi jans & Mike,
I've read through the weblink a couple of times and gone back to my =
notes on C&H bases, handles, and HTMMIS. I think what's happened is a =
case of sloppy editing in the weblink.=20
The left side of a cup is printed when the stock starts a correction =
after a prior uptrend of 30% or more. With APPX, that means that the =
left side of the cup is *not* the 52 wk high set on 1/4 (22.00) as they =
implied, but instead, is the high set on 3/15 (19.11). The left side =
starts on 3/15 because the rise from the low 2/8 (12.97) to the peak on =
3/15 was (19.11-12.97)/12.97 =3D 47%, setting up the new correction and =
beginning of the cup. See an annotated chart at =
http://WallStreet-LLC.com/canslim/APPX101102.JPG
In HTMMIS, the wording WON uses to define the beginning of the handle =
and the pivot buy point is "most occur 5% to 10% below the former =
peak....and this is almost always somewhat below the base's actual high =
point." The key word to me is that they are identifying the start of the =
handle in relationship to the *base's* high point. There are a couple of =
examples to demonstrate that the left side of the base is not always the =
old 52 wk high. See for example, VRSN on p. 159 or PMCS on p. 162 of the =
new edition of HTMMIS.
Once the left side of the base is properly identified, then it's simply =
a matter of testing whether the handle is valid:
1. Did it form within 5-15% of the base high? yes
2. Did it form in the upper half of the base? yes
3. Did it droop no more than 30% (that's a valid "bear market droop", =
though the norm is 10-20%)? yes
4. Did it drift down on light volume? yes--though you could see the =
beginning of the breakout in the last day of the handle.
5. Did it form above the 200 day MA? yes
6. Was it at least 5 days long? yes
7. Did volatility in the handle contract? debatable, though not =
exceedingly zig zaggish and handles will often have a big shakeout day
None of that's to say that the breakout won't fail, but I have to =
disagree with the weblink's analysis this time.
Katherine
- ----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Friday, October 11, 2002 4:15 PM
Subject: RE: [CANSLIM] IBD Weblink
Hi Jans,
The point I was trying to make was not about the level at which the =
handle
forms (5,15 or 31%), but that they used the 52 week high (back in =
January)
as the reference point, rather than the left side of the cup, which =
was
$19.11 on 3/13.
However, if they had used the left side of the cup as the reference, =
then it
was only 8% below the left side, well within the normal range and =
therefore
a normal range.
This was how my site saw the cwh as of 10/9, the day before the =
breakout.
=
http://www.cwhcharts.com/charts/cwhchart.php?symbol=3DAPPX&today=3D2002-1=
0-09
Aloha,
Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of =
Spencer48@aol.com
Sent: Friday, October 11, 2002 10:22 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] IBD Weblink
Mike:
This is a passage from IBD's Weblink today on APPX: "...Was this
consolidation a sound handle? No, it wasn't. The low of the handle, =
15.08,
stood 31% off the 52-week high of 22. A healthy handle forms 5% to 15% =
off
the stock's high in a strong market, up to 20% off the high in a bear. =
Thus
Thursday's 8% gain on heavy volume (Point 3), while impressive, didn't
constitute a true breakout...."
Previously, I thought WON had said that the low of the handle =
should
not
go below 35% of the previous rise to the left lip.
By The Way (whoever reads this far down): I generally compile my =
IBD
"New America" stocks every Friday. Today I noticed that ALL of the =
stocks
in
New America for this week are in the Medical-Products or Medica/Dental
Supplies or Medical Drugs industries. You think-with this repetition =
of
"Medical"-IBD is hinting at something?
jans
In a message dated 10/11/2002 3:55:18 PM Eastern Daylight Time,
mike@proactech.com writes:
<< It used to be that the pivot should be within 5-15% of the left =
side of
the
cup, but here they say 5-15% of the 52 week high. This seems to imply =
a new
constraint that the left side of the cup should also be a 52 week =
high. >>
-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
- ------=_NextPart_000_014D_01C27151.4D4A2670
Content-Type: text/html;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2719.2200" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV>Hi jans & Mike,</DIV>
<DIV> </DIV>
<DIV>I've read through the weblink a couple of times and gone back to my =
notes=20
on C&H bases, handles, and HTMMIS. I think what's happened is a case =
of=20
sloppy editing in the weblink. </DIV>
<DIV> </DIV>
<DIV>The left side of a cup is printed when the stock starts a =
correction after=20
a prior uptrend of 30% or more. With APPX, that means that the left side =
of the=20
cup is *not* the 52 wk high set on 1/4 (22.00) as they implied, but =
instead, is=20
the high set on 3/15 (19.11). The left side starts on 3/15 because the =
rise from=20
the low 2/8 (12.97) to the peak on 3/15 was (19.11-12.97)/12.97 =3D 47%, =
setting=20
up the new correction and beginning of the cup. See an annotated chart =
at <A=20
href=3D"http://WallStreet-LLC.com/canslim/APPX101102.JPG">http://WallStre=
et-LLC.com/canslim/APPX101102.JPG</A></DIV>
<DIV> </DIV>
<DIV>In HTMMIS, the wording WON uses to define the beginning of the =
handle and=20
the pivot buy point is "most occur 5% to 10% below the former =
peak....and this=20
is almost always somewhat below the base's actual high point." The key =
word to=20
me is that they are identifying the start of the handle in relationship =
to the=20
*base's* high point. There are a couple of examples to demonstrate that =
the left=20
side of the base is not always the old 52 wk high. See for example, VRSN =
on p.=20
159 or PMCS on p. 162 of the new edition of HTMMIS.</DIV>
<DIV> </DIV>
<DIV>Once the left side of the base is properly identified, then it's =
simply a=20
matter of testing whether the handle is valid:</DIV>
<DIV> </DIV>
<DIV>1. Did it form within 5-15% of the base high? yes</DIV>
<DIV>2. Did it form in the upper half of the base? yes</DIV>
<DIV>3. Did it droop no more than 30% (that's a valid "bear market =
droop",=20
though the norm is 10-20%)? yes</DIV>
<DIV>4. Did it drift down on light volume? yes--though you could see the =
beginning of the breakout in the last day of the handle.</DIV>
<DIV>5. Did it form above the 200 day MA? yes</DIV>
<DIV>6. Was it at least 5 days long? yes</DIV>
<DIV>7. Did volatility in the handle contract? debatable, though not =
exceedingly=20
zig zaggish and handles will often have a big shakeout day</DIV>
<DIV> </DIV>
<DIV>None of that's to say that the breakout won't fail, but I have to =
disagree=20
with the weblink's analysis this time.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dmike@proactech.com href=3D"mailto:mike@proactech.com">Mike =
Gibbons</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, October 11, 2002 =
4:15=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] IBD =
Weblink</DIV>
<DIV><BR></DIV>Hi Jans,<BR><BR>The point I was trying to make was not =
about=20
the level at which the handle<BR>forms (5,15 or 31%), but that they =
used the=20
52 week high (back in January)<BR>as the reference point, rather than =
the left=20
side of the cup, which was<BR>$19.11 on 3/13.<BR><BR>However, if they =
had used=20
the left side of the cup as the reference, then it<BR>was only 8% =
below the=20
left side, well within the normal range and therefore<BR>a normal=20
range.<BR><BR>This was how my site saw the cwh as of 10/9, the day =
before the=20
breakout.<BR><BR><A=20
=
href=3D"http://www.cwhcharts.com/charts/cwhchart.php?symbol=3DAPPX&to=
day=3D2002-10-09">http://www.cwhcharts.com/charts/cwhchart.php?symbol=3DA=
PPX&today=3D2002-10-09</A><BR><BR>Aloha,<BR><BR>Mike=20
Gibbons<BR>Proactive Technologies, LLC<BR><A=20
=
href=3D"http://www.proactech.com">http://www.proactech.com</A><BR><BR><BR=
>-----Original=20
Message-----<BR>From: <A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>[mailto:owner-canslim@lists.xmission.com]On=20
Behalf Of <A =
href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</A><BR>Sent:=20
Friday, October 11, 2002 10:22 AM<BR>To: <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>Subject:=20
Re: [CANSLIM] IBD =
Weblink<BR><BR><BR>Mike:<BR><BR> =20
This is a passage from IBD's Weblink today on APPX: "...Was=20
this<BR>consolidation a sound handle? No, it wasn't. The low of the =
handle,=20
15.08,<BR>stood 31% off the 52-week high of 22. A healthy handle forms =
5% to=20
15% off<BR>the stock's high in a strong market, up to 20% off the high =
in a=20
bear. Thus<BR>Thursday's 8% gain on heavy volume (Point 3), while =
impressive,=20
didn't<BR>constitute a true =
breakout...."<BR><BR> =20
Previously, I thought WON had said that the low of the handle=20
should<BR>not<BR>go below 35% of the previous rise to the left=20
lip.<BR><BR> By The Way (whoever reads this =
far=20
down): I generally compile my IBD<BR>"New America" stocks every=20
Friday. Today I noticed that ALL of the stocks<BR>in<BR>New =
America for=20
this week are in the Medical-Products or Medica/Dental<BR>Supplies or =
Medical=20
Drugs industries. You think-with this repetition =
of<BR>"Medical"-IBD is=20
hinting at something?<BR><BR>jans<BR><BR><BR><BR><BR>In a message =
dated=20
10/11/2002 3:55:18 PM Eastern Daylight Time,<BR><A=20
href=3D"mailto:mike@proactech.com">mike@proactech.com</A>=20
writes:<BR><BR><< It used to be that the pivot should be within =
5-15% of=20
the left side of<BR>the<BR> cup, but here they say 5-15% of the =
52 week=20
high. This seems to imply a new<BR> constraint that the left side =
of the=20
cup should also be a 52 week high. >><BR><BR>-<BR>-To=20
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><BR><BR>-<BR>-To =
subscribe/unsubscribe, email=20
"<A =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim". =20
Do not use quotes in your email.<BR></BLOCKQUOTE></BODY></HTML>
- ------=_NextPart_000_014D_01C27151.4D4A2670--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Date): Re: [CANSLIM] What's still strong? "Katherine Malm"
Previous Article (by Date): RE: [CANSLIM] IBD Weblink "Mike Gibbons"
Top of Thread: Re: [CANSLIM] IBD Weblink Spencer48@aol.com
Next in Thread: RE: [CANSLIM] IBD Weblink Chris Dempsey
Articles sorted by: [Date]
[Author]
[Subject]