RE: [CANSLIM] "M" with references to WON books

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] "M" with references to WON books
Date: Fri, 14 Mar 2003 11:46:10 -0600
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Top of Thread: RE: [CANSLIM] "M" with references to WON books "Tim Katona"
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Hi All,

Here's a summary explanation of WON's guidelines for both the "old" and the
"new" definition of a FTD:

http://www.market-tester.com/newft.htm

My read on WON's guidelines is that 1%+ would be fine if it were accompanied
by a slew of breakouts. 2% is useful, but even it doesn't hold water without
a slew of stocks at least *setting up* for breakout.

In either case, it only makes sense that the "market" is a summary indicator
of its individual components. If the majority of individual CANSLIM-quality
stocks are acting well, then our "market" is healthy. If the individual
CANSLIM-quality stocks are not acting well, it's a mine field. As Ed said,
grounds for stepping lightly.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tim Katona
Sent: Friday, March 14, 2003 10:40 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] "M" with references to WON books


Rolf,
That was the page I was looking for!

From page 78 of WON's 24 lessons book, In bold letters:
"You only start counting a rally if the close is up from the prior day."
In this case, Wednesday March 12 did close higher than Tuesday.

Also on page 78:
""Follow-through" day. Index up 1% or more on increased volume from the day
before. Market is in new uptrend. Usually occurs fourth through seventh day
of an attempted rally."

(Since 24 lessons was published WON did change the "Index up 1% or more on
increased volume from the day before" to 2% or more.)

Also see HTMMIS third edition pages 64 and 65 on rally attempt, 2% reasoning
and follow-through day. Interesting, WON says that a follow-through could
even occur on the third day of a rally attempt if certain conditions exist.
Tim


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein
Sent: Friday, March 14, 2003 8:16 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] "M"


I've been following the example from 24 Lessons, pg. 78.  The first day of
an attempted rally is a day in which an index closes up sans volume
considerations.  A FTD day usually occurs on day 4 to 7 (higher volume, 2%
increase).  From Tim's comments, IBD is following that criteria.

I guess an 'attempted' rally becomes a 'confirmed' rally if a FTD occurs on
days 4 thru 7 (and as late as 10).  I try to qualify 'attempts' based on the
action of the first day;  we've had at least a couple of weak attempts (that
failed) lately.

 Rolf


> I think so, but welcome other opinions on this.
>
> ----- Original Message -----
> From: "Rolf Hertenstein" <rolfh@mindspring.com>
> To: <canslim@lists.xmission.com>
> Sent: Friday, March 14, 2003 10:20 AM
> Subject: Re: [CANSLIM] "M"
>
>
> Thanks, Tom.  For my edification, do you think your count is in accordance
> with WON?
>
>  Rolf
>
> > I start my count with yesterday, because of the combination of price
gain
> > and volume. On Wednesday, volume improved, but only sufficient to turn a
> > down day into a moderate loss. Historically, maybe Wednesday will prove
to
> > be a reversal day that marked a second bottom. But by itself I don't use
> it
> > as a starting point for counting. Thursday, on the other hand, can stand
> on
> > its own merits.
> >
> > It also does not hurt that every major index participated Thursday,
while
> > only most were benefiting on Wednesday
> >
> > ----- Original Message -----
> > From: "Rolf Hertenstein" <rolfh@mindspring.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Friday, March 14, 2003 8:35 AM
> > Subject: Re: [CANSLIM] "M"
> >
> >
> > Does anyone count yesterday other than day 2, and if so, what and why?
> >
> >  Rolf
> >
> > > strictly market days, Mike
> > >
> > > ----- Original Message -----
> > > From: "Mike" <PatternDT@SoftHome.net>
> > > To: <canslim@lists.xmission.com>
> > > Sent: Friday, March 14, 2003 12:41 AM
> > > Subject: Re: [CANSLIM] "M"
> > >
> > >
> > > Certainly was a fine rally, the shorts are writhing in fear.  I
wouldn't
> > be
> > > disappointed to see a retest soon, how that goes will be more telling.
> > >
> > > How are you counting the 4-7 days, market days or including weekends?
> > > Thanks,
> > > Mike
> > >
> > >
> > >  >>
> > > 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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