RE: [CANSLIM] ROK

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] ROK
Date: Mon, 13 Jan 2003 14:08:09 -0600

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Hi All,

I just read the today's weblink at investors.com and noticed that they
mentioned the statistics for pullbacks. This is a bit lower than I remember
and different than the 60% I quoted in my earlier email: "... four out of
every 10 leading stocks fall back to near its pivot before taking off for
big gains..." Either way, it does show that there's a fairly high percentage
of pullbacks.

See the weblink I mentioned (PFCB) at http://www.investors.com/weblink/

Katherine

- -----Original Message-----
From: Katherine Malm [mailto:kmalm@earthlink.net]
Sent: Monday, January 13, 2003 10:08 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] ROK


HI Mike,

Statistically, somewhere on the order of 60% of stocks will pullback to
prices near the pivot after breakout. With odds like that, I wouldn't be
inclined to look at intraday action on a mild pullback, but would instead
assess the price/volume action in the days following the breakout using
end-of-day action. ROK already failed and formed a new handle recently, and
that additional action in the overall handle area is a bit wedge-like. That
puts the stock under yellow flag alert.

A pullback 7-8% below the pivot wouldn't necessarily be considered a
failure. As the IBD often notes, sometimes a bit of patience pays off. That
doesn't take away from the need to be ever-diligent when the pivot is
violated, but it's not an "out of the pool" signal by itself.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of
michael_niemotka@baxter.com
Sent: Monday, January 13, 2003 10:08 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] ROK


Hi all, and happy new year!

Watching ROK this morning, it seems like it is in danger of breaking below
the pivot of $22.40.  I know in the past Katherine has noted that if a
stock that she has recently bought on breakout falls below the pivot in the
first few days, she may consider a sell, but I am curious if everyone looks
at what is going on during the day, or are those type of decisions made on
end of day price.

So for instance, if ROK falls below the pivot during today, but finishes
above it, did it violate the pivot point?

Thanks

Mike

Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com



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