Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] fwht pivot
Date: Tue, 17 Jun 2003 10:52:48 -0500
Next Article (by Subject): RE: [CANSLIM] stop losses and profits michael_niemotka@baxter.com
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This is a multi-part message in MIME format. - ------=_NextPart_000_006D_01C334BE.973688B0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Hi Charley and Simon, While you might look at the chart and think "breakout!", the key is in the base itself. Among the many technical guidelines, it's critical to view the setup within the guidelines of "a valid setup." For FWHT, you have to look at the length of the base to see why there is no pivot at 14.15 as you suggest: http://www.cwhcharts.com/katherine/FWHT060503.JPG You might then argue that the price/volume action on 6/6 is "a breakout" but keep in mind that as a stock pushes up the right side of a base, the volume will increase, often surging and falling back on quiet volume. That's what you want to see in a good base. So, simply because the volume was high on 6/6, doesn't make it a breakout, as the base was not yet complete. While this is a critical distinction when running a computerized algorithm for determining whether a stock should be included on one of our site watchlists, I think it has broader implications to the CANSLIM investor in general. That is, among the many things one looks for when deciding whether a stock has properly setup for an impending breakout, one of them is to avoid bases that are too short. While one might look at a chart like FWHT and say "so what?" it's only 27 days in the cup vs. the 30 required, the real issue is, at what point do you break "the rules?" This is something on which I never compromise. If the set up is valid it's valid. If it isn't, I wait. Here's the setup currently. The pivot is established after the consolidation has lasted at least 30 days (only flat bases allow for shorter time periods and this is too deep to be considered a flat base): http://www.cwhcharts.com/katherine/FWHT061603.JPG Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Tuesday, June 17, 2003 7:42 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] fwht pivot Hi Simon: I read it the way you do. Perhaps we can get Katherine to explain why cwhCharts reads it differently. Charley - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Simon MacMahon Sent: Tuesday, June 17, 2003 7:22 AM To: canslim@lists.xmission.com Subject: [CANSLIM] fwht pivot Greeting, I haven`t posted much as of yet so I thought I would get the ball rolling with a question I recently came across. Regarding FindWhat.Com (Fwht), a stock with good fundamentals, accelerating earnings, decent group, RS 96, good margins and ROE. It has recently been mentioned at CwHCharts.com with a CE of 15.63. At that site the pivot is indicated to be at 15 in which case it hasn`t broken out yet, but if I were to have looked at the chart I would have put the pivot at 14.15 with a breakout having occurred on June 6th. Any thoughts would be appreciated. - ------=_NextPart_000_006D_01C334BE.973688B0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD><TITLE></TITLE> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Dus-ascii"> <META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR></HEAD> <BODY> <P>Hi Charley and Simon,<BR><BR>While you might look at the chart and = think=20 "breakout!", the key is in the base itself. Among the many technical = guidelines,=20 it's critical to view the setup within the guidelines of "a valid=20 setup."<BR><BR>For FWHT, you have to look at the length of the base to = see why=20 there is no pivot at 14.15 as you suggest:<BR><BR><A=20 href=3D"http://www.cwhcharts.com/katherine/FWHT060503.JPG"=20 target=3D_blank>http://www.cwhcharts.com/katherine/FWHT060503.JPG</A></P>= <P>You might then argue that the price/volume action on 6/6 is "a = breakout" but=20 keep in mind that as a stock pushes up the right side of a base, the = volume will=20 increase, often surging and falling back on quiet volume. That's what = you want=20 to see in a good base. So, simply because the volume was high on 6/6, = doesn't=20 make it a breakout, as the base was not yet complete.<BR><BR>While this = is a=20 critical distinction when running a computerized algorithm for = determining=20 whether a stock should be included on one of our site watchlists, I = think it has=20 broader implications to the CANSLIM investor in general. That is, among = the many=20 things one looks for when deciding whether a stock has properly setup = for an=20 impending breakout, one of them is to avoid bases that are too short. = While one=20 might look at a chart like FWHT and say "so what?" it's only 27 days in = the cup=20 vs. the 30 required, the real issue is, at what point do you break "the = rules?"=20 This is something on which I never compromise. If the set up is valid = it's=20 valid. If it isn't, I wait. <BR><BR>Here's the setup currently. The = pivot is=20 established after the consolidation has lasted at least 30 days (only = flat bases=20 allow for shorter time periods and this is too deep to be considered a = flat=20 base):<BR><BR><A = href=3D"http://www.cwhcharts.com/katherine/FWHT061603.JPG"=20 target=3D_blank>http://www.cwhcharts.com/katherine/FWHT061603.JPG</A><BR>= <BR>Katherine<BR><BR>-----Original=20 Message-----<BR>From: owner-canslim@lists.xmission.com [<A=20 href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis= ts.xmission.com</A>]On=20 Behalf Of Chazmoore@aol.com<BR>Sent: Tuesday, June 17, 2003 7:42 = AM<BR>To:=20 canslim@lists.xmission.com<BR>Subject: Re: [CANSLIM] fwht = pivot<BR><BR><BR>Hi=20 Simon: I read it the way you do. Perhaps we can get Katherine to explain = why=20 cwhCharts reads it = differently.<BR><BR>Charley <BR><BR><BR>-----Original=20 Message-----<BR>From: owner-canslim@lists.xmission.com<BR>[<A=20 href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis= ts.xmission.com</A>]On=20 Behalf Of Simon MacMahon<BR>Sent: Tuesday, June 17, 2003 7:22 AM<BR>To:=20 canslim@lists.xmission.com<BR>Subject: [CANSLIM] fwht = pivot<BR><BR>Greeting, I=20 haven`t posted much as of yet so I thought I would get the<BR>ball = rolling with=20 a question I recently came across. Regarding<BR>FindWhat.Com (Fwht), a = stock=20 with good fundamentals, accelerating<BR>earnings, decent group, RS 96, = good=20 margins and ROE. It has recently<BR>been mentioned at CwHCharts.com with = a CE of=20 15.63. At that site the<BR>pivot is indicated to be at 15 in which case = it=20 hasn`t broken out yet,<BR>but if I were to have looked at the chart I = would have=20 put the pivot at<BR>14.15 with a breakout having occurred on June 6th. = Any=20 thoughts<BR>would be appreciated.<BR> </P></BODY></HTML> - ------=_NextPart_000_006D_01C334BE.973688B0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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