[CANSLIM] Bailing out of a would-be breakout

From: "Jerome Buckmelter" <jsjbuck@myexcel.com>
Subject: [CANSLIM] Bailing out of a would-be breakout
Date: Wed, 2 Apr 2003 19:22:33 -0800
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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 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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