Re: [CANSLIM] "M"

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] "M"
Date: Thu, 13 Mar 2003 22:10:39 -0800

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Hi Tom:

It sure looked like mostly short-covering from my vantage point. We were due
for it.

That being said, the Oct 10 - Dec 3 rally started out the same way - driven
by temporary seller exhaustion and a ton of short covering. So theres
nothing to say that this cannot last a while too.


One thing that really stands out to me is that the SOXX actually bottomed
way back on February 7 - and resisted any drop in the last 2 weeks. The SOXX
is up 11 1/2% from yesterdays low, which is a staggering 9 hours of trading
for a major index.

IMO, this increases the chances that there are a few days/weeks of staying
power in the NASDAQ just from the strength of the semis.

Just remember, that if you look at a 3-year weekly chart of the OEX, and
watch the 40-week EMA, you will find that it has been the ceiling for every
rally. So if we do have a rally, I'd be looking to go short at OEX 460.

We'll see.

Cheers,

Ian





- ----- Original Message -----
From: Tom Worley <stkguru@bellsouth.net>
To: CANSLIM <canslim@lists.xmission.com>
Sent: Thursday, March 13, 2003 4:24 PM
Subject: [CANSLIM] "M"


> OK, we got a good rally today, whether it was just a relief rally, or
short
> covering, or maybe even a real rally, with real sidelined cash flowing
back
> in.
>
> Mutual funds only have two weeks to invest any cash in excess of their
> limits, and may have contributed. A delay in a vote at the UN is being
> credited, so just may be news driven, here today, gone tomorrow.
>
> Nonetheless, we certainly got a 2+% gain on every index, and on volume
well
> exceeding daily average. And that comes in a period when daily volume has
> been typically well under average.
>
> So, is anybody starting to count the days, looking for the follow thru day
> 4-7 days out? Coincidentally, that period might also fall just after war
> with Iraq is unilaterally initiated by the USA, which would cause at least
> some minor relief rally.
>
> Does anyone trust today's gains? With so much news, can we trust
technicals?
>
> Tom Worley
> stkguru@bellsouth.net
> AIM: TexWorley
>
>
>
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