Re: [CANSLIM] Break outs or pullbacks

From: Davellil5@aol.com
Subject: Re: [CANSLIM] Break outs or pullbacks
Date: Fri, 11 Jul 2003 14:22:02 EDT

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Bill, thanks for expanding the idea.

In addition to the principle that the way to use CANSLIM has to be adapted to 
the market, there is also the idea of a second chance.  We have some emails 
circulating right now in our group about missing a stock because it broke out 
fast and ran up beyond the "5% no-chase rule" before it could be bought.  Since 
so many stocks are breaking out and correcting very shortly, there are plenty 
of second chances to climb on.

Often, in this market a stock will break out, run up beyond the 5% 
chase-limit, and jiggle up and down a couple of times over the next week or two before 
correcting.  Sometimes, the correction will even test the 50DMA.  Another type 
of second chance.

Like fishing!  If the fish doesn't get hooked on the first strike at the 
bait, leave the bait out there for a second strike.

Regards, Dave


 

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