RE: Re: [CANSLIM] breakouts to come

From: Tomas <tomas986@yahoo.com>
Subject: RE: Re: [CANSLIM] breakouts to come
Date: Tue, 3 Jun 2003 16:41:07 -0700 (PDT)
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Yea, I am beginning to realize that IBD is not a very
good mining tool.

Katherine, a question.  How do you save those charts
to annotate?  I cannot seem to save the whole charts. 
I can only save one chart at a time.  I am referring
to your cwhcharts.  Oh, I recalled you saying that it
is ok to save your charts and annotate them, right?

Regards,
tomas

- --- Katherine Malm <kmalm@earthlink.net> wrote:
> Hi Ann and all,
> 
> I have to agree with Bill on this. By the time
> something makes it to a list like
> the WR or the IBD100, they've already *become* the
> leaders. It makes a heck of a
> lot more sense to catch them as they're *becoming*
> leaders. That is, if RS>=85
> is considered a leader, then how the heck did they
> get there? They rose from a
> lower RSRank to get there in the first place. If
> they were rising in RSRank,
> then they were *rising in price.* While looking for
> outperformance to the market
> and to other stocks is a cornerstone of CANSLIM
> investing, I've never agreed
> that mining should only be done after the stock is
> at RSRank 80 or 85. It's true
> that leaders will pull back and offer new entry
> points, so having a list of
> leaders is helpful. But the problem is, if you want
> to get the best part of the
> move, you've got to be watching these guys as they
> set up and start the lion's
> share of the move. The IBD started publishing an
> index of the WR stocks over
> time, showing a mild percentage gain vs. a sink hole
> return in the indexes
> during the Bear, but I suspect that if one were to
> instead publish an index of
> stocks breaking out of sound bases starting at a
> non-laggard RSRank>=70, then
> the index would be substantially higher.
> 
> Years ago, a friend of mine and I would meet every
> Saturday for coffee and pour
> over the IBD together. At the time, he kept asking
> why the heck all the stocks
> mentioned in the paper didn't offer up a good entry
> point. Most of the time, the
> lists of stocks, the minigraphs, etc. were already
> too extended. That meant that
> in order to use the IBD itself for mining, we had to
> sift through the
> lilliputian stock tables highlighting stocks from
> RSRank 70 and up, highlight up
> and coming Industries, add the stocks from "Where
> the Big Money is Flowing" then
> one by one look at all the charts. It was exhausting
> and incredibly time
> consuming. My conclusion after practically loosing
> my eyesight (and my
> Saturdays) was that while the IBD is an incredible
> resource for current news,
> information on companies, keeping tabs on the Market
> and learning about CANSLIM,
> it's a lousy mining tool.
> 
> Once I'd figured that out, I set out to instead
> devise a methodology that would
> let me mine for stocks that met the minimum
> requirements for a CANSLIM-quality
> stock and were *just* beginning to outperform and
> setup for a breakout. The goal
> was to own a stock before it showed up in the IBD.
> Just as Bill suggested,
> seeing it in the IBD *after* I'd found it was the
> ultimate test. Or, another way
> of saying it was that I didn't want to see a single
> stock mentioned in the IBD
> that I didn't already know about. For the most part,
> I think that implies that
> at the very least, one needs some sort of technical
> software to do this. Many
> here use HGS/Quotes Plus (QP2), DGO, Vectorvest and
> others to do this and each
> has their own particular approach. But even with
> these tools, it still requires
> looking through a lot of charts every day to make
> sure you're seeing the stocks
> *as* they set up. As I'd rather be hiking the Grand
> Canyon or having a margarita
> by the pool, that time spent motivated me to develop
> even better tools for
> finding stocks setting up for a breakout, leading to
> my partnership with Mike at
> the cwhcharts.com site. That means that there is a
> third alternative to sifting
> through the IBD or through a lot of charts, and that
> is to let a computer do all
> that time consuming work for you. Our approach is to
> let the computer find *all*
> the non-laggard stocks currently setting up in cup
> with handle bases, put them
> on a watchlist, and then let us know automatically
> if they are breaking out
> above their pivots. Now *there's* an excuse to have
> another dip in the pool!
> 
> Katherine
> 
>  -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf
> Of Ann Hollingworth
> Sent: Monday, June 02, 2003 9:01 PM
> To: canslim@lists.xmission.com
> Subject: Re: Re: [CANSLIM] breakouts to come
> 
> 
>   Thanks, Bill, and Rolf, for the watch list ideas.
> I may have to change the
> source of my minings.
>   Ann
> 
>   -----Original Message-----
>   From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf
> Of Rolf Hertenstein
>   Sent: Monday, June 02, 2003 11:39 AM
>   To: canslim@lists.xmission.com
>   Subject: Re: Re: [CANSLIM] breakouts to come
> 
> 
>   Hi Bill - Are you referring to IBD's Screen of the
> Day?
> 
>   I think in a recent discussion of the market, IBD
> mentioned that further
> breakouts at this stage of this bull run (however
> long it'll be) are more likely
> to be 'second rate'.  The real leaders have broken
> out and already have good
> gains.  This won't stop me from looking of course.
> 
>    Rolf
>     ----- Original Message -----
>     From: Bill Triffet
>     To: canslim@lists.xmission.com
>     Sent: Monday, June 02, 2003 12:22 PM
>     Subject: Re: Re: [CANSLIM] breakouts to come
> 
> 
>     I use WR as a confirmation that I bought right.
> I like to see one of my buys
> show up there AFTER I've bought it. I also find
> those graphs tend to be "Monday
> morning quarterbacking". I think it's IBD's way of
> showing how you how a stock
> already broke out - not time to buy. I also find
> many of them have broken out of
> upwards trending handles which is troubling to me.
> 
>     As far as the IBD100, I like to track #25-100
> for increasing strength and a
> proper entry points. By design, most of the top will
> be already extended.
> 
>     For list creation, I'd also do a quick scan of
> the daily updated stocks
> featured on the IBD site for possible setup/entry
> points.
> 
>     Btw, the use of an offline charting tool such as
> Quotes Plus is a real time
> saver when you need to look at lots of stocks for
> list building. The charts pop
> up instantly allowing you to make quick end of day
> scans. Doing it online - even
> with a highspeed connection is much slower though
> you see them intraday.
> 
>     --
>     Bill
> 
> 
> 
>    
>
- -----------------------------------------------------------------
>     I was just going through the charts of IBD100
> last night, and was thinking
>     the exact same thing.  Are there any other lists
> of high quality CANSLIM
>     stocks that should be scanned to check for
> proper price patterns?
> 
>     Chris
>       ----- Original Message -----
>       From: Ann Hollingworth
>       To: CANSLIM Listserv
>       Sent: Monday, June 02, 2003 4:28 AM
>       Subject: [CANSLIM] breakouts to come
> 
> 
>       It seems to me, as I hunt through WR and
> IBD100, that there are a lot of
>     overextended stocks, and not to many on the
> right side of their cup or
>     ready to break out.
> 
>       It would seem to me that there could be two
> reasons 
=== message truncated ===


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