RE: [CANSLIM] Bailing out of a would-be breakout

From: "Jerome Buckmelter" <jsjbuck@myexcel.com>
Subject: RE: [CANSLIM] Bailing out of a would-be breakout
Date: Thu, 3 Apr 2003 08:04:12 -0800
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Tom, Thank you for your input.  I value your insights and opinions.  Is
it not true that if volume does not reach 50%, a breakout has not
occurred by definition?  Therefore shouldn't I view the action I
described with FRX as not a breakout, and think about treating the buy
differently from a genuine breakout, i.e., setting the loss at 7% or 8%,
etc.?   I
 
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley
Sent: Wednesday, April 02, 2003 8:14 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Bailing out of a would-be breakout
 
Jerome, assuming you are accurate in selecting the pivot point, and
bought within 5% of that point, then I would stick to a stop loss of 8
- -10% below your purchase price. This is a very volatile and emotional
market. I would also pay close attention to where such a stop loss price
places you with recent downside support. Depending on that, I might use
a larger or smaller stop loss, so that my selling point is just under
support, especially institutional support.
 
- ----- Original Message ----- 
From: Jerome Buckmelter <mailto:jsjbuck@myexcel.com>  
To: CANSLIM <mailto:canslim@lists.xmission.com>  LIST 
Sent: Wednesday, April 02, 2003 10:22 PM
Subject: [CANSLIM] Bailing out of a would-be breakout
 
Does anyone have an idea how to handle a "breakout" if it doesn't act
right on the first day?  I got fooled this morning by the huge volume
FRX displayed as it zoomed by its pivot (on a 4-day handle).  Of course,
everything else was surging upwards at the opening of the market!  FRX
cooled off as the day progressed, and its volume ended the day a little
above average.  And the price, of course, dropped below my purchase
price, but still held above the pivot.  Some time ago I devised a
strategy for myself for such occasions, but I haven't tested it yet, and
I hope I could get some feed back from fellow CANSLIMers before making a
mistake with it.  Here's my strategy:  Sell near at the end of the first
day if 50% volume does not materialize and stock closes below purchase
price. Hold if volume does not materialize and stock price closes above
the purchase price. Sell at the end of the second day if volume does not
materialize, even if the price is up.  Sell the second day if the price
falls below the pivot.  Is this a sound strategy?  Does WON address this
situation anywhere?  Can anyone share their strategy?  I would really
appreciate some input.  Thanks. 

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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Tom, Thank you for your input.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>I value your insights and =
opinions.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Is it not true that if volume =
does not
reach 50%, a breakout has not occurred by definition?<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Therefore shouldn&#8217;t I =
view the
action I described with FRX as not a breakout, and think about treating =
the buy
differently from a genuine breakout, i.e., setting the loss at 7% or 8%, =
etc.? <span
style=3D'mso-spacerun:yes'>&nbsp;&nbsp;</span>I<o:p></o:p></span></font><=
/p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Tom Worley<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"4" Day=3D"2" Year=3D"2003"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
 10.0pt;font-family:Tahoma'>Wednesday, April 02, =
2003</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"20" Minute=3D"14"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
 font-family:Tahoma'>8:14 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
Bailing out
of a would-be breakout</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>Jerome, assuming you are =
accurate in
selecting the pivot point, and bought within 5% of that point, then I =
would
stick to a stop loss of 8 -10% below your purchase price. This is a very
volatile and emotional market. I would also pay close attention to where =
such a
stop loss price places you with recent downside support. Depending on =
that, I
might use a larger or smaller stop loss, so that my selling point is =
just under
support, especially institutional support.</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>&nbsp;</span></font><o:p></o=
:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- ----- <o:p></o:p></span></font></p>

<div style=3D'font-color:black'>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;background:#E4E4E4'><b><font size=3D2
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>From:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:jsjbuck@myexcel.com" title=3D"jsjbuck@myexcel.com">Jerome =
Buckmelter</a>
<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">CANSLIM
LIST</a> <o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><st1:date
Month=3D"4" Day=3D"2" Year=3D"2003"><font size=3D2 face=3DArial><span =
style=3D'font-size:
 10.0pt;font-family:Arial'>Wednesday, April 02, =
2003</span></font></st1:date><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><st1:time
Hour=3D"22" Minute=3D"22"><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
 font-family:Arial'>10:22 PM</span></font></st1:time><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'><o:p></o:p></span></font></p=
>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> [CANSLIM]
Bailing out of a would-be breakout<o:p></o:p></span></font></p>

</div>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

</div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>Does anyone have an idea =
how to
handle a &#8220;breakout&#8221; if it doesn&#8217;t act right on the =
first
day?<span style=3D'mso-spacerun:yes'>&nbsp; </span>I got fooled this =
morning by
the huge volume FRX displayed as it zoomed by its pivot (on a 4-day =
handle).<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Of course, everything else was =
surging
upwards at the opening of the market!<span =
style=3D'mso-spacerun:yes'>&nbsp;
</span>FRX cooled off as the day progressed, and its volume ended the =
day a
little above average.<span style=3D'mso-spacerun:yes'>&nbsp; </span>And =
the
price, of course, dropped below my purchase price, but still held above =
the
pivot.<span style=3D'mso-spacerun:yes'>&nbsp; </span>Some time ago I =
devised a
strategy for myself for such occasions, but I haven&#8217;t tested it =
yet, and
I hope I could get some feed back from fellow CANSLIMers before making a
mistake with it.<span style=3D'mso-spacerun:yes'>&nbsp; =
</span>Here&#8217;s my
strategy:<span style=3D'mso-spacerun:yes'>&nbsp; </span>Sell near at the =
end of
the first day if 50% volume does not materialize and stock closes below
purchase price. Hold if volume does not materialize and stock price =
closes
above the purchase price. Sell at the end of the second day if volume =
does not
materialize, even if the price is up.<span =
style=3D'mso-spacerun:yes'>&nbsp;
</span>Sell the second day if the price falls below the pivot.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Is this a sound strategy?<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Does WON address this situation
anywhere?<span style=3D'mso-spacerun:yes'>&nbsp; </span>Can anyone share =
their
strategy?<span style=3D'mso-spacerun:yes'>&nbsp; </span>I would really =
appreciate
some input.<span style=3D'mso-spacerun:yes'>&nbsp; </span>Thanks. =
<o:p></o:p></span></font></p>

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