RE: [CANSLIM] WORTH A LOOK

From: "Pritish Shah" <pshah@lason.com>
Subject: RE: [CANSLIM] WORTH A LOOK
Date: Tue, 17 Jun 2003 14:24:03 -0400

Previous Article (by Subject): RE: [CANSLIM] WORTH A LOOK "Katherine Malm"
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Katherine,

First thanks. After your comments, I am feeling great. I am learning from =
great teachers (WON and you)

I will add the info about pivots and weak/strong breakouts to my brain. =
Open sesame...

Regards,
Pritish

>>> kmalm@earthlink.net 06/17/03 02:15PM >>>
Hi Pritish,

re: "Katherine: any comments?"

With respect to the charts, can't think of anything I could possibly add =
to
your super analysis.

Only thing I'd add is a definition clarification. By definition, a "pivot"
(or "breakout price") is the high point of the handle. A "breakout" is =
when
the stock trades at or above the pivot.

The "ideal buy point" is when the stock trades 0.10 above the pivot on =
high
volume (>=3D150% avg volume on the breakout day). Generally, while a stock =
can
"breakout" on low volume (ie., move above the pivot, or point of
resistance), WON suggests that these kinds of breakouts are more failure
prone and are best avoided. So, in practice I think most of us tend to
equate the term "breakout" with "a strong breakout at the ideal buy point"
but they aren't really the same thing. I like to think of "a strong =
breakout
at the ideal buy point" as "strong (or sustained) breakout" vs.  "a move
above the pivot on low volume" or "weak breakout." Subtle, but helps with
some of the confusion over the 10 cent issue vs. the pivot!

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Pritish Shah
Sent: Tuesday, June 17, 2003 11:27 AM
To: Jwvitale@aol.com; canslim@lists.xmission.com=20
Subject: Re: [CANSLIM] WORTH A LOOK



This is what I see:

UTSI broke out on May 13th and is over extended currently. There is also a
rising price and falling volume currently (wedging) that could indicate a
problem.

TCHC: This broke out yesterday at the pivot of 14.58 (.10 plus 14.48
previous high) however, its average volume is only 25k. Could be a good =
buy
but do not put any stops -- have mental stops and execute a market order
when it falls below that stop.

ATH: It rose in price four trading days ago (pivot =3D $76.10) but volume
(1,585,000) was not 1.5 times Avg Volume (1,190,045). It is rising in =
price
and the volume is drying up so this is not a true breakout. Plus: while =
its
price is rising, its relative strength is falling.

Katherine: any comments?

>>> Jwvitale@aol.com 06/17/03 01:04PM >>>
Hi Everyone -

Take a look at UTSI, TCHC, ATH.  All have good fundamentals.  Breaking out
today...?

Jim


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