Go to Jeff Salisbury LWGate Home Page.From: "Mark Kerson" <mkerson@dplus.net>
Subject: RE: [CANSLIM] How much support is the 50 DMA? (JOSB)
Date: Mon, 5 May 2003 17:59:45 -0400
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Top of Thread: [CANSLIM] How much support is the 50 DMA? (JOSB) "Chris Jones"
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Hello Chris.
If you are following IBD my advice is to sell. Sell now. Sell tonight.
I have been struggling with this IBD rule more than any other and am now
sitting on two stocks that I should have sold but, like you, reasoned
myself into holding.
At this point they are down so much (45% & 52%) that it does not much
matter and I'm going to wait for them to come back or drop into oblivion
(they are fairly small investments as I'm in the process of learning
IBD).
It has been a painful lesson that I have had to learn too many times.
But when IBD says to sell, they also so that you can buy back in if it
goes up again.
So, in case you can't tell, my advice is to SELL NOW.
Of course I'm sitting on a 45 & 52% loss so what do I know.
Mark
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Chris Jones
Sent: Monday, May 05, 2003 5:45 PM
To: CANSLIM
Subject: [CANSLIM] How much support is the 50 DMA? (JOSB)
I have a dilemma - I bought JOSB a few weeks back and put a mental stop
in at $27 (8%). When I checked today after the market closed, I saw it
had dropped $1.88, and is now at $25.51. I'm a little mad that I only
placed a mental stop, which could have avoided this, however I can't
change that now. Normally I would sell right at the market since my
loss has now dropped to 12%, but the stock now sits about $.25 above
it's 50 DMA. Should I hang on and hope institutions will step in? IBD
says "many institutions view the 50-day line as a level at which they
can add to their positions at a reasonable price. That's why many strong
stocks find "support" at this line." However, it seems that the 50 DMA
hasn't been too much of a support/resistance for JOSB in the past. I
hate to wait and hope, since that's exactly what O'Neil said bad
investors do, but the 50 DMA adds an interesting twist. Should I sell
at the market, or wait to see if it bounces back? Opinions are
appreciated!
Thanks so much!
Chris
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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'>Hello Chris. =
<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> </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'>If you are following IBD my advice =
is to sell.
Sell now. Sell tonight. <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> </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'>I have been struggling with this =
IBD rule more
than any other and am now sitting on two stocks that I should have sold =
but,
like you, reasoned myself into holding. <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> </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'>At this point they are down so much =
(45%
& 52%) that it does not much matter and I’m going to wait for =
them to
come back or drop into oblivion (they are fairly small investments as =
I’m
in the process of learning IBD). <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> </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'>It has been a painful lesson that I =
have
had to learn too many times. <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> </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'>But when IBD says to sell, they =
also so
that you can buy back in if it goes up again. =
<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> </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'>So, in case you can’t tell, =
my
advice is to SELL NOW. <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> </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'>Of course I’m sitting on a 45 =
&
52% loss so what do I know. <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> </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'>Mark<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> </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>Chris Jones<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Monday, May 05, =
2003 5:45 PM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> CANSLIM<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> [CANSLIM] How =
much
support is the 50 DMA? (JOSB)</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> </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'>I have a dilemma - I bought =
JOSB a
few weeks back and put a mental stop in at $27 (8%). When I =
checked
today after the market closed, I saw it had dropped $1.88, and is now at
$25.51. I'm a little mad that I only placed a mental stop, which =
could
have avoided this, however I can't change that now. Normally I =
would sell
right at the market since my loss has now dropped to 12%, but the stock =
now
sits about $.25 above it's 50 DMA. Should I hang on and hope =
institutions
will step in? IBD says "many institutions view the 50-day =
line as a
level at which they can add to their positions at a reasonable price. =
That's
why many strong stocks find "support" at this =
line."
However, it seems that the 50 DMA hasn't been too much of a =
support/resistance
for JOSB in the past. I hate to wait and hope, since that's =
exactly
what O'Neil said bad investors do, but the 50 DMA adds an =
interesting
twist. Should I sell at the market, or wait to see if it bounces
back? Opinions are appreciated!</span></font><o:p></o:p></p>
</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></o:p></span></font></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'>Thanks so =
much!</span></font><o:p></o:p></p>
</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></o:p></span></font></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'>Chris</span></font><o:p></o:=
p></p>
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