RE: [CANSLIM] COLM

From: michael_niemotka@baxter.com
Subject: RE: [CANSLIM] COLM
Date: Thu, 5 Jun 2003 12:08:46 -0500
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Katherine,

Do you think COLM is showing a wedge?

Mike


Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com


                                                                                                                            
                    "Katherine Malm"                                                                                        
                    <kmalm@earthlink.net>        To:     canslim@lists.xmission.com                                         
                    Sent by:                     cc:                                                                        
                    owner-canslim@lists.xm       Subject:     RE: [CANSLIM] COLM                                            
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                    06/05/2003 11:23 AM                                                                                     
                    Please respond to                                                                                       
                    canslim                                                                                                 
                                                                                                                            
                                                                                                                            




Hi Tomas,

While it is true there are technical patterns called "wedges," the
"wedging"
action Mike is referring to is a general statement on the divergence in
price and volume action in the stock's chart. It comes into play in 2 ways:

First: If the prices are rising while volume continues to fall, that's
considered "negative divergence" or "wedging price action." That's usually
a
warning sign that the price move doesn't have any conviction and may not
last. This is the situation that Mike is asking about with COLM.

Second: When you're looking at the price action of a stock while it is in
the handle portion of the cup with handle, you don't want to see the prices
rise along their lows. Regardless of the volume action, this is considered
a
"wedging handle." Overall, in a handle, you are looking for the prices to
*decline* simultaneously with declining volume. That is the ideal
indication
of a "final shakeout," getting rid of weak holders and setting the stage
for
a solid breakout.

Katherine


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tomas
Sent: Wednesday, June 04, 2003 10:26 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] COLM


Mike, this might be a silly question, but what is a
wedging action?

tomas

- --- michael_niemotka@baxter.com wrote:
> Is COLM showing a wedging action?
>
>
> Mike Niemotka , PE
> Sr. Principal Engineer
> Baxter Healthcare Corporation
> Route 120 & Wilson Road
> Round Lake, IL 60073
> Tel (847) 270-4075
> Fax (847) 270-4525
> michael_niemotka@baxter.com
>
>
>
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