Re: [CANSLIM] Qwest research

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Qwest research
Date: Wed, 25 Dec 2002 02:36:41 EST

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pshah:

     I don't want to argue the point.  This is just how Q appears to me:  Yo=
u=20
could be right; however, I think you are wrong.  Q is not in a bullish mode.=
 =20
Here is why I think that:

Earnings, and even projected '03 Earnings, are negative;=20

There is A LOT of overhead resistance (I believe that both these points=20
support the fact that institutions will not invest in Q.  They would have=20
bought Q in the 90's when "Romance" of internet stocks was in full bloom, bu=
t=20
I don't believe they would now.  Earnings are what will propel the stock=20
tomorrow, not fanciful notions);=20

One could argue that Q has made a V-shaped cup, but going from about 1 up to=
=20
4=BD is not my idea of a rally (the cup's subsequent trough should be a=20
correction from an immediately preceding rally).  To me the chart looks like=
=20
a rally correction of an ongoing downtrend.

I'll never understand (although I probably did it myself) the novice's mad=20
love affair with technical analysis for technical analysis's sake.  If=20
something isn't kosher, why acceed to it?  For example, you say that the RS=20
has been increasing, gapping up on higher volume and "not violating the gap"=
.=20
 I say: Big Deal.  This just says that the stock is doing better than the=20
market-so the question becomes why choose this stock over others with better=
=20
and more powerful RS-Lines? =20
     Also, what is the connection between your implication that the stock is=
=20
strong because the RS-Line did not violate the gap?  In my opinion, the=20
RS-Line is not the stock; the only thing that can be read in the RS-Line is:=
=20
that it is steep, that it is level or that it is plunging.=20

     As I said, you could be right and I could be wrong.  However, a=20
successful stock picker must not only learn so that he/she can understand=20
chart analysis, but also he/she must be able to view the  chart=20
realistically, and understand what is and what is not significant (even=20
though a lot in the chart may actually be relevant).

jans

=20



In a message dated 12/25/2002 1:34:53 AM Eastern Standard Time,=20
pshah@lason.com writes:

<< To me the chart looks very bullish. Ofcourse, I am inexperienced >>

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