Re: [CANSLIM] Opinion on IFF

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Opinion on IFF
Date: Thu, 9 Jan 2003 17:18:29 EST

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Cindy:

     When we are in a problematical market (ie. presently-while maybe not a 
bear, not yet a bull), I will generally look at the weekly for buy points 
(I'm hoping to spot an uptrend); the daily chart usually is too volatile and 
untrustworthy.  I trust the weekly, in a bear or tight ranging market, to be 
more reliable.  I don't have any data to support this feeling, but it does 
seem common-sensical to me:  If a stock Breaks Out on high volume on a weekly 
basis (and doesn't retrace during the week of the BO), then its future 
up-path I believe will be more reliable (and predictable). 

     Thus, NBTY on the daily chart has indeed broken out-and I would wait for 
the retracement (seeing that the retracement doesn't go below the pivot 
point-and it does so on low volume).  However, notice that on the weekly it 
has broken out ONLY this past week.  I'd wait to see how it closes Friday.  
If it is still above its breakout point, then I will go to the daily for my 
final analysis and see how it is holding up (declining on lo volume, or hi 
volume price-falls where the stock ends near the top of its range [this 
indicates, to me, fund/institutional support] )

     I don't know that I'd choose IFF even if the industry picks up.  WON 
says that one should choose the strongest stocks in a strong industry.  Also, 
I believe I read somewhere that WON says that lagging stocks in a strong 
industry are unlikely to become the leaders in that industry (unless, I 
guess, they have some new product or marketing scheme).  IFF doesn't strike 
me as that type of company.

jans


In a message dated 1/9/2003 2:00:56 PM Eastern Standard Time, 
uptickchick2003@yahoo.com writes:

<< Thanks for your response.  I admit I didn't look very closely at the 
fundamentals myself because I rely on IBD to do that for me.  Shame on me. :) 
 If NBTY continues in an uptrend, my thinking is that it will pull IFF with 
it.  My plan would be to get in at the buy point and ride up for the short 
term as long as I don't get any negative signals and as long as NBTY stays 
strong.  Alternatively, if I decide on NBTY it appears that I will have to 
wait for a pullback to find a buy point, right? >>

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