[CANSLIM] JOSB buy point

From: James Bond <james_bond_3rd@yahoo.com>
Subject: [CANSLIM] JOSB buy point
Date: Wed, 23 Oct 2002 17:29:06 -0700 (PDT)

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I think JOSB is at a good entry point now that it has
cleared the momo crowd (read CANSLIMer's). This was
not a failed breakout because there was no clear pp.
IBD was wrong to say that the pp was 23.18 - the drop
from 23.08 to 15.96 (7.12 or 31%) was too deep for a
handle but too shallow for a double bottom. The entire
base was an inverted H&S formation with a complicated
neckline. This pullback can be viewed as the normal
test of the neckline after a H&S BO. The matching lows
of yesterday and today are bullish in candlestick
terms. So is the doji star candlestick today.

If you were kicking yourself two days ago for missing
the JOSB BO, now pretend you actually bought it right
at pp of 23.18. What would have you done? You probably
were anguishing over whether to hold on or to cut
losses. Skip the anguish part. Put your stop at a few
cents below 22. That would limit the potential loss at
slightly over 5%. Since violations of matching lows
rarely happen, now your position is safer than it was
a few days ago. OTOH, if the stock drops below 22, I
would seriously consider liquidating all positions and
go completely in cash - it shouldn't happen in a
healthy market, knowing all we know about the
fundamentals of JOSB.

Won't you say 23 is a great entry point now?

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