[CANSLIM] Sidewall Breakouts

From: Davellil5@aol.com
Subject: [CANSLIM] Sidewall Breakouts
Date: Thu, 26 Jun 2003 12:46:40 EDT

Next Article (by Author): [CANSLIM] A Question for Bill O'Neil [T2003062500K0] "Gene Ricci"
Previous Article (by Author): Re: [CANSLIM] MVL Bill Triffet
Articles sorted by: [Date] [Author] [Subject]

In this market, I've been noticing a  large number of stocks that have 
experienced one or more high-volume breakouts, some of them upgaps, along the right 
sidewalls of cups.  In most instances, there were no handles prior to the 
breakouts.

None of those stocks would have been bought on those occasions under the WON 
system.  Yet, they seem like lost opportunities for gain.

On reflection, it doesn't seem far-fetched to reason that, in a period of 
recovery from a bear market, investors are less likely to wait for full 
develpment of bases, but take positions at earlier stages in the recovery of individual 
stocks.

Moreover, isn't it likely that several breakouts along the right wall of a 
cup increase the likelihood that a "real" WON breakout (after completion of cup 
and handle) on such a  stock will be followed by a correction or even 
collapse, with the investor who buys on the WON breakout getting whipsawed?  Does this 
explain some of the post-cup corrections, of which we've seen so many?

Anyone else observed this phenomenon?

Regards,k Dave










- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.