Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Should we concider OTHER intraday volume? ANSS
Date: Fri, 20 Jun 2003 10:40:15 -0500
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MessageHi John,
I think too much focus on the pattern of activity intraday is too fine for
CANSLIM investing and generally causes one to "overthink" a position and/or
overtrade. While variations such as those you mention are of importance to a
short term trader, the CANSLIM frame of reference is measured in days or weeks,
so volume and/or price action should really be considered in a larger context.
To put the volume action for ANSS in perspective, look at it relative to prior
days' intraday action:
http://www.cwhcharts.com/katherine/ANSSIntraday062003.JPG
The important thing is that ANSS broke out on volume >=150%. As if finished
mid-range on a weak day in the market, there's some evidence there's some oomph
in the stock. It would be more important to watch the follow-thru action in the
days after the BO than to get too caught up in the intraday action itself.
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of John Calkins
Sent: Thursday, June 19, 2003 10:06 PM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Should we concider OTHER intraday volume? ANSS
I purchaced ANSS today at midday after it crossed its pivot and proved its
volume was high. My question is should we concider the "OTHER" action of the
intraday volume? I watched the price stay steady near the middle of its daily
trading range for the day, above its pivot but near the end of the day the
volume suddenly doubled with no real price movement. Then right at the close it
move up slightly with another doubling of the volume. Can some of this be
concidered churning or is this large volume action normal. Or could it be
concidered a sign of strength in the face of todays sell off? Now that I own
the stock, I want to carefully watch to make sure any down movements are on low
volumn but what about CANSLIM and watching this intraday volume?
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<DIV><SPAN class=3D187233515-20062003>Hi John,</SPAN></DIV>
<DIV><SPAN class=3D187233515-20062003></SPAN> </DIV>
<DIV><SPAN class=3D187233515-20062003>I think too much focus on the =
pattern of=20
activity intraday is too fine for CANSLIM investing and generally causes =
one to=20
"overthink" a position and/or overtrade. While variations such as those =
you=20
mention are of importance to a short term trader, the CANSLIM frame of =
reference=20
is measured in days or weeks, so volume and/or price action should =
really be=20
considered in a larger context.</SPAN></DIV>
<DIV><SPAN class=3D187233515-20062003></SPAN><SPAN=20
class=3D187233515-20062003></SPAN> </DIV>
<DIV><SPAN class=3D187233515-20062003>To put the volume action for ANSS =
in=20
perspective, look at it relative to prior days' intraday =
action:</SPAN></DIV>
<DIV><SPAN class=3D187233515-20062003></SPAN> </DIV>
<DIV><SPAN class=3D187233515-20062003><A=20
href=3D"http://www.cwhcharts.com/katherine/ANSSIntraday062003.JPG">http:/=
/www.cwhcharts.com/katherine/ANSSIntraday062003.JPG</A></SPAN></DIV>
<DIV><SPAN class=3D187233515-20062003></SPAN> </DIV>
<DIV><SPAN class=3D187233515-20062003>The important thing is that ANSS =
broke out=20
on volume >=3D150%. As if finished mid-range on a weak day in the =
market,=20
there's some evidence there's some oomph in the stock. It would be more=20
important to watch the follow-thru action in the days after the BO than =
to get=20
too caught up in the intraday action itself.</SPAN></DIV>
<DIV><SPAN class=3D187233515-20062003></SPAN> </DIV>
<DIV><SPAN class=3D187233515-20062003>Katherine</SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<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>John=20
Calkins<BR><B>Sent:</B> Thursday, June 19, 2003 10:06 PM<BR><B>To:</B> =
canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] Should we =
concider=20
OTHER intraday volume? ANSS<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>I purchaced ANSS today at midday =
after it crossed=20
its pivot and proved its volume was high. My question is should =
we=20
concider the "OTHER" action of the intraday volume? I watched =
the price=20
stay steady near the middle of its daily trading range for the day, =
above its=20
pivot but near the end of the day the volume suddenly doubled with no =
real=20
price movement. Then right at the close it move up slightly with =
another=20
doubling of the volume. Can some of this be concidered churning =
or is=20
this large volume action normal. Or could it be concidered a sign of =
strength=20
in the face of todays sell off? Now that I own the stock, I want =
to=20
carefully watch to make sure any down movements are on low volumn but =
what=20
about CANSLIM and watching this intraday volume?</FONT><![if =
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