RE: [CANSLIM] BO, too fast too much

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] BO, too fast too much
Date: Wed, 28 May 2003 11:16:36 -0500
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Top of Thread: Re: [CANSLIM] BO, too fast too much Bill Triffet
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Hi Tomas,

I think there are a few different options if you can't monitor the market
intraday.

These require that you first select the stocks that you want to monitor for
breakout, so if something moves that was not on your radar, then you will
not see it:

(1) As Bill suggested, set up a buy stop/limit order. This will be executed
based on price, so you still have to check in sometime before the end of the
day to ensure that the volume requirements were also met. If not, then you
have to be willing to sell the position.

(2) Use an alert system (broker based or stand alone) that allows you set
price alerts and then sends them to your phone, text based pager or wireless
PDA. You have to preset the stocks you wish to monitor and you will have to
be able to interrupt your business at hand to check in on the market and
make the trade if the projected volume is sufficient.

(3) Check in on the market at lunch. If the stocks you are watching are
nearing a breakout at that point, place a market order or a buy stop/limit
order. If using a buy stop then you'll need to check actual volume at day's
end and sell if necessary as with option 1.

This allows you to look for possible breakouts, even if the stock wasn't
originally on your radar. The easiest way to find these is to look for
stocks that close up on the day on volume >=150% of ADV (either by using the
"Where the Big Money is Flowing" or a technical program that lets you scan
for stocks):

(4) Wait until day's end to find stocks that have broken out and are still
within range (<5%). Advantage is that you will be able to see the actual
volume in order to confirm the BO. The disadvantage, as you noted is that
the stock may very well be extended beyond the buying range and you'll have
to pass and/or wait to see if it pulls back and provides a second chance
entry.

This last option does not require that you already have a stock on your
radar in order to see an attempted breakout intraday:

(5) Use a breakouts alert service (there's only one) that automatically
sends out an intraday alert when a stock in a basing pattern is breaking
out. This can go to your email, text based pager or wireless PDA address.
The advantage over any of the other options is that you do not have to seek
out the stock in question to determine if it is setting up and when/if it
attempts an intraday breakout, you will be notified. As with option 1,
however, the intraday alerts are based on projected volume, so if you choose
to execute an order and end of day volume does not pan out, you'll have to
be willing to sell the position. Alternately, you can wait until near
mid-day or near market close to make a buy decision, but then you risk
missing the breakout price window.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Bill Triffet
Sent: Wednesday, May 28, 2003 9:46 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] BO, too fast too much


Ah the proverbial problem for us folks with non-investment jobs...

In the past, When a nice handle has formed, I'd make a buy/limit order just
above the pivot. I'd then check to see if it executed. If it did, I'd check
to see if volume is sufficient. If the volume is low, I'd immediately sell.

I've also been setting hard stops immediately after the buy as I've not been
able to track the market as much during the day.

- --
Bill

- -------Original Message-------
From: Tomas <tomas986@yahoo.com>
Sent: 05/27/03 08:55 PM
To: canslim canslim <canslim@lists.xmission.com>
Subject: [CANSLIM] BO, too fast too much

>
> Looks like USNA BO from a nice tight flat base today.
I have been eyeing this stocking, trying to get in for
awhile.  But it is too late at the end of the day
since it rose ~14% today.  So, my question is how do
you get a position in when the BO is so strong and so
fast?  I can't be looking at stocks every minute of
the day.

How do some of you guys do it?  Set email alerts?
Maybe something else?  How has your alert system been
working for ya?  Any other suggestion?

Thanks,
tomas

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