Go to Jeff Salisbury LWGate Home Page.From: "Ann Hollingworth" <annholly@attbi.com>
Subject: Re: Re: [CANSLIM] breakouts to come
Date: Wed, 4 Jun 2003 20:03:37 -0400
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Katherine,
Thanks for explaining all this. I' m not sure I can afford your website, =
but will try the 7-day trial during summer vacation.
In the meantime, I can't figure out how to "browse" the site as a guest.
How do I do that? (I don't want to do my 7-day trial yet.)
Ann
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, June 03, 2003 12:42 AM
Subject: RE: Re: [CANSLIM] breakouts to come
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>=3D85 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>=3D70, 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=20
-----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=20
----- Original Message -----=20
From: Bill Triffet=20
To: canslim@lists.xmission.com=20
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.=20
--
Bill
=20
-----------------------------------------------------------------
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 -----=20
From: Ann Hollingworth=20
To: CANSLIM Listserv=20
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=20
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 for this:
1. The rally is going to wane.
2. The WR and IBD100 do not produce stocks at this state of =
their
development.
Any comments??
Ann
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Katherine,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thanks for explaining all this. I' m =
not sure I can=20
afford your website, but will try the 7-day trial during summer=20
vacation.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>In the meantime, I can't figure out how =
to "browse"=20
the site as a guest.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>How do I do that? (I don't want to do =
my 7-day=20
trial yet.)</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Ann</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, June 03, 2003 =
12:42=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: Re: [CANSLIM] =
breakouts to=20
come</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D125404003-03062003>Hi Ann and all,</SPAN></DIV>
<DIV><SPAN class=3D125404003-03062003></SPAN> </DIV>
<DIV><SPAN class=3D125404003-03062003>I have to agree with Bill on =
this. By the=20
time something makes it to a list like the WR or the IBD100, they've =
already=20
*become* the leaders. It makes a heck of a lot more sense to catch =
them as=20
they're *becoming* leaders. That is, if RS>=3D85 is considered a =
leader, then=20
how the heck did they get there? They rose from a lower RSRank to get =
there in=20
the first place. If they were rising in RSRank, then they were *rising =
in=20
price.* While looking for outperformance to the market and to other =
stocks is=20
a cornerstone of CANSLIM investing, I've never agreed that mining =
should only=20
be done after the stock is at RSRank 80 or 85. It's true that leaders =
will=20
pull back and offer new entry points, so having a list of leaders is =
helpful.=20
But the problem is, if you want to get the best part of the move, =
you've got=20
to be watching these guys as they set up and start the lion's share of =
the=20
move. The IBD started publishing an index of the WR stocks over time, =
showing=20
a mild percentage gain vs. a sink hole return in the indexes =
during the=20
Bear, but I suspect that if one were to instead publish an index of =
stocks=20
breaking out of sound bases starting at a non-laggard RSRank>=3D70, =
then the=20
index would be substantially higher.</SPAN></DIV>
<DIV><SPAN class=3D125404003-03062003></SPAN> </DIV>
<DIV><SPAN class=3D125404003-03062003>Years ago, a friend of mine and =
I would=20
meet every Saturday for coffee and pour over the IBD together. At the =
time, he=20
kept asking why the heck all the stocks mentioned in the paper didn't =
offer up=20
a good entry point. Most of the time, the lists of stocks, the =
minigraphs,=20
etc. were already too extended. That meant that in order to use the =
IBD itself=20
for mining, we had to sift through the lilliputian stock tables =
highlighting=20
stocks from RSRank 70 and up, highlight up and coming Industries, add =
the=20
stocks from "Where the Big Money is Flowing" then one by one look =
at all=20
the charts. It was exhausting and incredibly time consuming. My =
conclusion=20
after practically loosing my eyesight (and my Saturdays) was that =
while the=20
IBD is an incredible resource for current news, information on =
companies,=20
keeping tabs on the Market and learning about CANSLIM, it's a lousy =
mining=20
tool.</SPAN></DIV>
<DIV><SPAN class=3D125404003-03062003></SPAN> </DIV>
<DIV><SPAN class=3D125404003-03062003>Once I'd figured that out, I set =
out to=20
instead devise a methodology that would let me mine for stocks that =
met the=20
minimum requirements for a CANSLIM-quality stock and were *just* =
beginning to=20
outperform and setup for a breakout. The goal was to own a stock =
before it=20
showed up in the IBD. Just as Bill suggested, seeing it in the IBD =
*after* I'd=20
found it was the ultimate test. Or, another way of saying it was that =
I didn't=20
want to see a single stock mentioned in the IBD that I didn't already =
know=20
about. For the most part, I think that implies that at the very=20
least, one needs some sort of technical software to do this. Many =
here=20
use HGS/Quotes Plus (QP2), DGO, Vectorvest and others to do this and =
each has=20
their own particular approach. But even with these tools, it still =
requires=20
looking through a lot of charts every day to make sure you're seeing =
the=20
stocks *as* they set up. As I'd rather be hiking the Grand Canyon or =
having a=20
margarita by the pool, that time spent motivated me to develop even =
better=20
tools for finding stocks setting up for a breakout, leading to my =
partnership=20
with Mike at the cwhcharts.com site. That means that there is a third=20
alternative to sifting through the IBD or through a lot of charts, and =
that is=20
to let a computer do all that time consuming work for you. Our =
approach is to=20
let the computer find *all* the non-laggard =
stocks currently=20
setting up in cup with handle bases, put them on a watchlist, and then =
let us=20
know automatically if they are breaking out above their pivots. Now =
*there's*=20
an excuse to have another dip in the pool!</SPAN></DIV>
<DIV><SPAN class=3D125404003-03062003></SPAN> </DIV>
<DIV><SPAN class=3D125404003-03062003>Katherine</SPAN></DIV>
<DIV><SPAN class=3D125404003-03062003></SPAN><FONT face=3DTahoma =
size=3D2><SPAN=20
class=3D125404003-03062003><FONT face=3D"Times New Roman"=20
size=3D3></FONT></SPAN></FONT> </DIV>
<DIV><FONT face=3DTahoma size=3D2><SPAN=20
class=3D125404003-03062003> </SPAN>-----Original=20
Message-----<BR><B>From:</B> owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Ann=20
Hollingworth<BR><B>Sent:</B> Monday, June 02, 2003 9:01 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: Re: [CANSLIM] =
breakouts to=20
come<BR><BR></DIV></FONT>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV><FONT face=3DArial size=3D2>Thanks, Bill, and Rolf, for the =
watch list=20
ideas. I may have to change the source of my minings.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Ann<SPAN =
class=3D125404003-03062003><FONT=20
face=3D"Times New Roman" size=3D3> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><SPAN=20
class=3D125404003-03062003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><SPAN class=3D125404003-03062003>
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Rolf=20
Hertenstein<BR><B>Sent:</B> Monday, June 02, 2003 11:39 =
AM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: Re: [CANSLIM] =
breakouts to=20
come<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Hi Bill - Are you referring =
to IBD's=20
Screen of the Day?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I think in a recent discussion of =
the market,=20
IBD mentioned that further breakouts at this stage of this bull run =
(however=20
long it'll be) are more likely to be 'second rate'. The real =
leaders=20
have broken out and already have good gains. This won't stop =
me from=20
looking of course.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial=20
size=3D2> Rolf</FONT> </SPAN></FONT></DIV></DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dbtriffet@earthlink.net =
href=3D"mailto:btriffet@earthlink.net">Bill=20
Triffet</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, June 02, 2003 =
12:22=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: Re: [CANSLIM] =
breakouts=20
to come</DIV>
<DIV><BR></DIV>I use WR as a confirmation that I bought right. I =
like to=20
see one of my buys show up there AFTER I've bought it. I also find =
those=20
graphs tend to be "Monday morning quarterbacking". I think it's =
IBD's way=20
of showing how you how a stock already broke out - not time to =
buy. I also=20
find many of them have broken out of upwards trending handles =
which is=20
troubling to me.<BR><BR>As far as the IBD100, I like to track =
#25-100 for=20
increasing strength and a proper entry points. By design, most of =
the top=20
will be already extended.<BR><BR>For list creation, I'd also do a =
quick=20
scan of the daily updated stocks featured on the IBD site for =
possible=20
setup/entry points.<BR><BR>Btw, the use of an offline charting =
tool such=20
as Quotes Plus is a real time saver when you need to look at lots =
of=20
stocks for list building. The charts pop up instantly allowing you =
to make=20
quick end of day scans. Doing it online - even with a highspeed =
connection=20
is much slower though you see them intraday.=20
=
<BR><BR>--<BR>Bill<BR><BR> <BR><BR>---------------------------------=
- --------------------------------<BR>I=20
was just going through the charts of IBD100 last night, and was=20
thinking<BR>the exact same thing. Are there any other lists =
of high=20
quality CANSLIM<BR>stocks that should be scanned to check for =
proper price=20
patterns?<BR><BR>Chris<BR> ----- Original Message ----- =
<BR> =20
From: Ann Hollingworth <BR> To: CANSLIM Listserv <BR> =
Sent:=20
Monday, June 02, 2003 4:28 AM<BR> Subject: [CANSLIM] =
breakouts to=20
come<BR><BR><BR> It seems to me, as I hunt through WR and =
IBD100,=20
that there are a lot of <BR>overextended stocks, and not to many =
on the=20
right side of their cup or<BR>ready to break out.<BR><BR> It =
would=20
seem to me that there could be two reasons for this:<BR><BR> =
1. The=20
rally is going to wane.<BR><BR> 2. The WR and IBD100 do not =
produce=20
stocks at this state of their<BR>development.<BR><BR> Any=20
comments??<BR><BR> =20
Ann<BR><BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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