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

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Bailing out of a would-be breakout
Date: Wed, 2 Apr 2003 23:13:40 -0500
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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.
=20
- ----- Original Message -----=20
From: Jerome Buckmelter=20
To: CANSLIM LIST=20
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.=20

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<DIV><FONT face=3DArial>Jerome, assuming you are accurate in selecting =
the pivot=20
point, and bought within 5% of that point, then I would stick to a stop =
loss of=20
8 -10% below your purchase price. This is a very volatile and emotional =
market.=20
I would also pay close attention to where such a stop loss price places =
you with=20
recent downside support. Depending on that, I might use a larger or =
smaller stop=20
loss, so that my selling point is just under support, especially =
institutional=20
support.</FONT></DIV>
<DIV><FONT face=3DArial>&nbsp;</FONT></DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Djsjbuck@myexcel.com href=3D"mailto:jsjbuck@myexcel.com">Jerome=20
Buckmelter</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">CANSLIM LIST</A> </DIV>
<DIV><B>Sent:</B> Wednesday, April 02, 2003 10:22 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Bailing out of a would-be =
breakout</DIV></DIV>
<DIV><BR></DIV>
<DIV class=3DSection1>
<P class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">Does anyone have an idea =
how to=20
handle a =93breakout=94 if it doesn=92t act right on the first day?<SPAN =

style=3D"mso-spacerun: yes">&nbsp; </SPAN>I got fooled this morning by =
the huge=20
volume FRX displayed as it zoomed by its pivot (on a 4-day handle). =
<SPAN=20
style=3D"mso-spacerun: yes">&nbsp;</SPAN>Of course, everything else was =
surging=20
upwards at the opening of the market!<SPAN style=3D"mso-spacerun: =
yes">&nbsp;=20
</SPAN>FRX cooled off as the day progressed, and its volume ended the =
day a=20
little above average.<SPAN style=3D"mso-spacerun: yes">&nbsp; </SPAN>And =
the=20
price, of course, dropped below my purchase price, but still held above =
the=20
pivot.<SPAN style=3D"mso-spacerun: yes">&nbsp; </SPAN>Some time ago I =
devised a=20
strategy for myself for such occasions, but I haven=92t tested it yet, =
and I hope=20
I could get some feed back from fellow CANSLIMers before making a =
mistake with=20
it.<SPAN style=3D"mso-spacerun: yes">&nbsp; </SPAN>Here=92s my =
strategy:<SPAN=20
style=3D"mso-spacerun: yes">&nbsp; </SPAN>Sell near at the end of the =
first day if=20
50% volume does not materialize and stock closes below purchase price. =
Hold if=20
volume does not materialize and stock price closes above the purchase =
price.=20
Sell at the end of the second day if volume does not materialize, even =
if the=20
price is up. <SPAN style=3D"mso-spacerun: yes">&nbsp;</SPAN>Sell the =
second day if=20
the price falls below the pivot.<SPAN style=3D"mso-spacerun: yes">&nbsp; =
</SPAN>Is=20
this a sound strategy?<SPAN style=3D"mso-spacerun: yes">&nbsp; =
</SPAN>Does WON=20
address this situation anywhere?<SPAN style=3D"mso-spacerun: yes">&nbsp; =

</SPAN>Can anyone share their strategy?<SPAN style=3D"mso-spacerun: =
yes">&nbsp;=20
</SPAN>I would really appreciate some input.<SPAN=20
style=3D"mso-spacerun: yes">&nbsp; </SPAN>Thanks.=20
<o:p></o:p></SPAN></FONT></P></DIV></BODY></HTML>

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