Re: [CANSLIM] New to the group

From: "Rolf Hertenstein" <rolfh@mindspring.com>
Subject: Re: [CANSLIM] New to the group
Date: Sat, 25 Jan 2003 21:13:57 -0700

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Hi Katherine -  In the paragraph below, I've read your sentence beginning:
"As the market is always looking forward........."
Are you saying that even a fundamentally strong stock can become technically
weak?  If so, I understand.  But if you're saying weak technical behavior
somehow is an indication of weak fundies ahead, you lost me.  The only link
I can see there is if some big investors are better at foreseeing lower
future earning trends and start selling.

 Rolf

P.S. I liked the reading-etiquette-at-espresso-shop lesson!

> I think one of the most important things I learned from O'Neil was not
that
> fundamentals matter, as that has always been the case and is important to
> the biggest of gurus such as Buffett, but that *technicals* matter as
well.
> As the market is always forward looking, the technicals will tell the tale
> of the stock before the fundamentals (which lag in reporting) reflect what
> is going on. That's how it was easy to see that stocks such as QCOM, YHOO,
> AOL, etc. were rolling over and falling apart in early 2000, even as their
> recent financial reports showed excellent results. The simplest way to
read
> the market signals then, is to read the action of the leading stocks. When
> they begin to act in tandem, that tells you collectively of the general
> market health.
>



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