Re: [CANSLIM] Re: Does CANSLIM Work?

From: "Rolf Hertenstein" <rolfh@mindspring.com>
Subject: Re: [CANSLIM] Re: Does CANSLIM Work?
Date: Fri, 7 Mar 2003 16:15:52 -0700

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Not to be nit-picky, but I think nowadays, a 2% rise on increased volume is
advocated.

My understanding is:
1. Day 1 is the first day of an attempted rally (e.g., today).  Volume is
not needed.
2. We look for a FTD 4-10 days after the first day of the attempted rally.
The FTD requires a 2% rise in one of the major indices on increased
(prefered above the 50-day ADV) volume.
3. If an index drops below the intraday low of Day 1, the rally fails (e.g.,
yesterday did in the attempted 5 March rally).

I might finally have this right - been going back to 24-Lessons on and off
when I get confused.

 Rolf


> James,
>
> As other people have indicated, the book will help you out with your
> question.  There are chapters which address the topics of "how to spot
when
> the market hits a top", "how to spot when the market bottoms", How to
guage
> the stock market's health", and "How to buy at just the right moment",
just
> to name a few.
>
> In brief, Canslim advocates waiting for a "follow-through" day before
going
> long after a negative trend.  This means one of the indicies closes up 1%
or
> more with a increase in volume the day before.  Because often the market
> will continue on its downward trend, we wait for a "confirmation day"
which
> is another day of increasing price and volume which will generally occur
3-4
> days after the FT Day.  Such a move confirms that the trend is a good one
> and suggest safety in going long (or back in the market from cash).
>
> Note:  this is a very condensed summary of the idea and I suggest you read
> one of the books.
>   24 Essential Lessons for Investment Success - O'Neil
>   How to Make Money in Stocks - O'Neil
>
> Erik
>
>
>
>
> ----- Original Message -----
> From: "James Lackey" <lackey1967@yahoo.com>
> To: <canslim@lists.xmission.com>
> Sent: Friday, March 07, 2003 12:08 AM
> Subject: Re: [CANSLIM] Re: Does CANSLIM Work?
>
>
> > " CANSLIM advocates a 100% cash position when the technical
> > > situation of the market is negative."  So this CANSLIM has been in
cash
> > since 2000?  How do you know when the market turns negative, until it
goes
> > down?  Then how do you know when it is time to get back in when the
market
> > goes up?  So I sell after it starts going down and I buy after it starts
> > going up?  I do not understand..LACK
> >
> > --- AJAskey@aol.com wrote:
> > > James,
> > >
> > > CANSLIM is nothing mystical.  The goal is to find the best fundamental
> > > growth
> > > stocks and buy them just as they make their major price moves.  It
> differs
> > >
> > > from most fundamental growth stategies in that it does not advocate
> buying
> > > a
> > > stock with exceptional fundamentals and waiting for the market to
> "figure
> > > out
> > > the value".  The goal is to buy each stock just as it begins a major
> price
> > >
> > > move.  The market's general conditions are consider as the probabilty
of
> > > success is greatly increased in a bull market (and decreased in a bear
> > > market).  CANSLIM advocates a 100% cash position when the technical
> > > situation
> > > of the market is negative.  There are rules and guides outlining what
> and
> > > when to buy and sell but it still requires judgement and experience to
> > > maximize profits.
> > >
> > > I recommend reading O'Neil's book before you attempt to trade using
> > > CANSLIM.
> > > Even if you decide against CANSLIM as a strategy, you will probably
> learn
> > > enough to make/save hundreds, thousands, and maybe millions of times
the
> > > $12
> > > cost of the book.
> > >
> > > Andy
> > >
> >
> >
> > __________________________________________________
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> >
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