RE: [CANSLIM] TSCO

From: "John Solarno" <workvirt@workvirtual.com>
Subject: RE: [CANSLIM] TSCO
Date: Wed, 18 Jun 2003 17:13:17 -0400
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Katherine:

Has anybody told you recently that you are absolutely, totally AWESOME?

I was just sorting through a passel of email and wondering how I was =
going
to respond to it all, and then I saw your message and thought, "Look at =
this
woman.  Day after day after day, she takes time out of whatever she's =
doing
to write out cogent, detailed replies to people, most of whom are =
complete
strangers." =20

If someone printed out all of your emails over the years and stacked =
them
up, I'm sure the pages would exceed all of the Harry Potter books =
combined!=20

There are obviously many people who contribute to this board, but I =
thought
I would take a moment and make sure that one of them (you!) was told =
THANK
YOU for being so consistently generous with your time and knowledge.

John Solarno=20


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm
Sent: Wednesday, June 18, 2003 8:56 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] TSCO

Hi Harold,

In the context of the discussion, a stock that is *already* rising from =
a
previous consolidation affords no low-risk entry point. With TSCO, an =
entry
here puts you at risk of sitting out another pullback to the previous
logical area of support. In this case, that can be all the way back to =
the
previous pivot, slightly below (as that wide bar during the last =
pullback
just after the last BO suggests), or somewhere around the 50dMA. The =
slight
wedging action in recent weeks suggests that the probability of a =
pullback
is very high, and particularly if one uses an 8% stop loss, the =
probability
of being shaken out is therefore very high.

 If one really likes this stock, then it's a lot smarter to wait for a
benign pullback and take your chances that it begins to move up again =
from
the pullback, as your odds of making money on the trade are considerably
higher. This is precisely what Fred has done for a couple of years,
purchasing on pullbacks and selling TSCO many times since 12/01.

I think the lesson with something like TSCO is that the 8% stop loss is =
a
protective mechanism for entry at the ideal buy point (a strong BO on =
volume
from a base), as the pullback here tends not to be much deeper if the BO =
is
strong. However, using an 8% stop when entering an extended stock is =
just
and excuse to loose 8%. There are plenty of good stocks out there, but =
one
can purcase "a very good stock" and still lose their shirt 8% at a time.
When a stock is extended, the 8% stop has no logic, because the next =
logical
area of support is generally much, much lower than 8% below the extended
entry. Even if one were to set a stop well below the 8% and back at =
logical
support, then the risk is that the stock not only pulls back but *fails*
outright, falling back into the base. At that point, a stop would force =
you
out at a much bigger loss than 8%. Oooh...makes me shiver to think about =
it.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Harold Josephson
Sent: Wednesday, June 18, 2003 1:09 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] TSCO



Hi Katherine,

What do you conclude from this chart?

Thanks

Harold

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm
Sent: Monday, June 16, 2003 11:07 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] TSCO

Hi Treb,

Here's the chart as I see it:

http://www.cwhcharts.com/katherine/TSCO061603.JPG

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Treb Courie
Sent: Monday, June 16, 2003 11:48 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] TSCO


Is TSCO breaking out today?  It's got good fundamentals and is on my =
watch
list.  However, I think I'm going to stay off of it--it looks to me like =
it
broke out of a sloppy handle on 2 June and is too extended now.

Regards,
Treb

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