RE: [CANSLIM] Low Volume Pullback Below Pivot

From: Marc Deiter <dites@yahoo.com>
Subject: RE: [CANSLIM] Low Volume Pullback Below Pivot
Date: Fri, 18 Jul 2003 12:41:25 -0700 (PDT)

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Thanks Katherine.

Why would May 30th not be considered a breakout?  The stock passed
the pivot of 9.23 on 2x average daily volume?  Then during the next 2
weeks the price comes down close to the pivot point before gradually
moving up.

On 5/27 and 5/28 the intra-day high's were above the pivot, but the
closing price was below 9.23.  Does this "dis-qualify" 9.23 as a
pivot point?

Thanks,
Marc


- --- Katherine Malm <kmalm@earthlink.net> wrote:
> Hi Dave & John,
> 
> Here's how I see BE's chart. In all cases, the basing formation is
> a
> bottoming base, which requires more interpretive action than do
> bases formed
> after long uptrends.
> 
> Here is BE 5/23/03. The problem is not with the base itself, but
> with the
> severely laggard RSRank of 35:
> 
> http://www.breakoutwatch.com/katherine/BE052303.JPG
> 
> Here is BE 6/23/03. It's continued to climb up and now has a
> non-laggard
> RSRank = 75, but it never had a convincing move above the pivot at
> 10.80
> (set 6/16). That is usually an indication that the stock is still
> building
> the RHS of the base, rising and falling and potentially setting a
> fresh
> pivot.
> 
> http://www.breakoutwatch.com/katherine/BE062303.JPG
> 
> Here is BE as of today. The lack of a convincing move above the
> previous
> pivot set a fresh pivot at 11.04 (set 7/15/03), but the base itself
> has some
> problems, particularly a lack of convincing volume build up on the
> RHS.
> 
> http://www.breakoutwatch.com/katherine/BE071803.JPG
> 
> While BE provided entry points closer to its bottom, I don't think
> it's
> provided a comfortable CANSLIM intermediate/term entry point just
> yet.
> Entries on pullbacks would then be a riskier venture, though highly
> do-able.
> If willing to take on the risk, I would look to the general price
> action
> itself to find a pullback entry much closer to the bottom of a
> logical
> support area if entering while the stock's still forming a more
> convincing
> RHS. If the market rolls over, then an entry here makes it easier
> to
> determine if the stock is going to roll over by itself or in
> response to
> generally weak market action.
> 
> http://www.breakoutwatch.com/katherine/BEFallZone.JPG
> 
> Katherine
> 
> -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf Of
> Davellil5@aol.com
> Sent: Friday, July 18, 2003 8:23 AM
> To: canslim@lists.xmission.com
> Subject: Re: [CANSLIM] Low Volume Pullback Below Pivot
> 
> 
> What pivot last Tuesday on BE?
> 
> Seems to me that BE broke out late April, early May, without
> bothering to
> form a handle.
> 
> There has been no secondary base since then that lasted the 7-8
> weeks
> suggested by WON as a minimum.
> 
> The question of buying a stock post-breakout should interest
> CANSLIM-ers as
> we so often become aware of a stock only after it has broken out
> and is over
> the 5% "chase-limit" suggested by WON.
> 
> DAVE
> 
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