Go to Jeff Salisbury LWGate Home Page.From: Tomas <tomas986@yahoo.com>
Subject: RE: APPX (was: [CANSLIM] ADVP)
Date: Mon, 26 May 2003 19:40:34 -0700 (PDT)
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Katherine, Thanks for the analysis. I also bought APPX at the BO. tomas - --- Katherine Malm <kmalm@earthlink.net> wrote: > Hi Roger, > > APPX is another one of those cases where you have a > better perspective on > the action since the breakout by using a weekly > chart: > > http://www.cwhcharts.com/katherine/APPXWkly052303.JPG > > It's hard not to have a situation where price > declines a bit since the > breakout, because that day, the volume was 150%+ of > average. Subsequent days > can still be on respectable volume, but viewed in > contrast to the big > breakout day, might give the impression of wedging > action. In that case, you > want to ask whether the action, in general, is doing > what you'd expect. Are > up days on high volume and down days on low volume? > Is there a significant > decrease in volume on up days in comparison to the > beginning of the run or > is it still respectibly high? Is the price churning > (very little upward > price movement on high volume)? Etc. > > http://www.cwhcharts.com/katherine/APPX052303.JPG > > That doesn't mean APPX won't flash warning signs in > the near future, but > right now it looks pretty healthy. That also > shouldn't affect your profit > taking plan in any way. If you've chosen to follow > the 20%-take-it-and-run > rule, then you should absolutely stick to your plan. > > Katherine > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com] > > Sent: Saturday, May 24, 2003 10:58 AM > > To: canslim@lists.xmission.com > > Subject: RE: [CANSLIM] ADVP > > > > Thanks again Katherine. > > > > In the case of APPX, I stock which I purchased at > 26.99$ as it broke out > > on 05-14, and which I still hold, I have been > looking for any signs of > > whether I should get out. although the rsrank is > great and the rsline is > > making new all-time highs, it has definitely been > wedging since the > > breakout. Do you consider the rsline action > outweighs the wedge or not? > > Please feel free not to answer this question given > my vested interest in > > APPX. > > > > Note that, given I am very new at this, I will, > much more than likely, > > invoke the take-your-20%-profit-and-run rule with > this one. > > > > ================================================= > > Roger Tawa > > http://tawacentral.net/ > > [One thing about paradigms: shift happens.] > > [When you stop, you're done.] > > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com] > > Sent: Saturday, May 24, 2003 12:36 PM > > To: canslim@lists.xmission.com > > Subject: RE: [CANSLIM] ADVP > > > > Hi Roger, > > > > Contrary to what might seem to be the case, a > strong stock > > will most often see the RSLine stay flat or > (preferrably) rise even as > > price is falling. That occurs because, despite the > pullback, the price > > action *relative to the market as a whole* is > still showing superiority. > > For example, if the price of stock A is falling at > a *slower rate* than > > the market is falling, the RSLine will rise. > That's why you can have a > > stock's RSLine rise even as the price is falling > on the left side of the > > cup and why it's possible for the RSLine to make > new highs, even as the > > stock's price is drifting down within the handle > (which is ideally what > > you would like to see). However, I wouldn't get > overly concerned about a > > minor pullback in the RSLine during the handle as > long as the overall > > upward trend of the RSLine remains intact. That > can happen when the market > > as a whole is very strong. > > > > What you really want to keep your eye on is a > very marked > > negative divergence in the direction of the RSLine > relative to the price > > action in the stock. This will happen in ill > formed bases and in stocks > > that are currently rising after a previous > breakout. If the price > > continues to rise while the RSLine heads markedly > South, that's a warning > > sign the move is running out of gas. This is the > same reasoning you would > > use when looking for the "wedging" action > discussed here on the list > > previously. That is, if price is rising on ever > decreasing volume, that > > divergence shows a lack of conviction in the move > and raises the > > likelihood that the stock will correct. That's why > you ideally want to see > > volume *rise* on the right side of the cup. > > > > Katherine > > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com] > > Sent: Saturday, May 24, 2003 10:13 AM > > To: canslim@lists.xmission.com > > Subject: RE: [CANSLIM] ADVP > > > > Thanks Katherine. > > > > As for the down-sloping ud volume in the > handle, I > > guess that's to be expected in a proper handle > given that the price should > > be falling. would the same be true for the rsline > and rsrank? Assuming > > the handle is forming due to a general market > downturn, you might expect > > the rsline and rank to (at least) be flat for a > true leader. Does that > > make sense? > > > > > ================================================= > > Roger Tawa > > http://tawacentral.net/ > > [One thing about paradigms: shift happens.] > > [When you stop, you're done.] > > > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com] > > Sent: Friday, May 23, 2003 1:56 PM > > To: canslim@lists.xmission.com > > Subject: RE: [CANSLIM] ADVP > > > > Hi Roger, > > > > I think with a stock like ADVP, particularly > where > > the base is lengthy, it's easiest to put the > volume action in perspective > > when looking at the weekly chart. I don't think > there's anything worrisome > > about an decreasing ADV line as it's simply > summarizing action over the > > last 50 days and so will vary a bit, particularly > if there were some very > > high volume days early in the 50 day period that > then drop off the > > calculation as time marches on. That would be > particularly true when much > > of the base falls outside that 50 day period. In > this case, ADVP's base is > > more than a year. If there were high volume on the > left side or near the > > bottom of the base as the stock pushed down and > then made a high volume > > reversal at the bottom, then eventually, those > volume bars fall outside > > the 50 days and action on the right side of the > base takes over in the ADV > > calculation. > > > > So, all in all, I'd put ADVP's base into > perspective > > by looking at the weekly action: > > > > > http://www.cwhcharts.com/katherine/ADVPWkly052303.JPG > === message truncated === > ATTACHMENT part 2 application/ms-tnef name=winmail.dat __________________________________ Do you Yahoo!? The New Yahoo! Search - Faster. Easier. Bingo. http://search.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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