Re: [CANSLIM] Low Volume Pullback Below Pivot

From: "John Calkins" <jcalkins@olypen.com>
Subject: Re: [CANSLIM] Low Volume Pullback Below Pivot
Date: Sun, 20 Jul 2003 22:10:30 -0700

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I guess I'm missing something here.  BE broke out on BreakoutWatch last
Tuesday with a "relative" high rating following the WON screens with
"reasonable" right cup and handle scores.  My question was not if this st=
ock
was a poor choice, because it was a good choice at the time it was bought.
My question somehow got lost in the advice of it shouldn't have been
purchaced in the first place, wich surprised the heck out of me because o=
f
where I got the information to buy it.

My question again is, now that I own it,  I purchacesd BE just above the
pivot on Tuesday.  It had pulled back on low
volume right away to my 7% mental stop and is sitting there.  Again, I wi=
ll
sell if it falls below it, but this low volume has me hoping (you know
hoping when I should be fearing, fearing when I should be hoping).   I do=
n't
mind a low volume pullback above the pivot.  I get a little lost in this
grey area between the pivot an the stop loss.  Should I be hoping or fear=
ing
what the volume action is doing with this low volume pull back or shoud I
wait a bit for a high volume pull back to pull the plug?

Getting back to the selecting of BE to purchace, it was rated number 21 o=
ut
of 50 for the days CE score.  If I'm so wrong for selecting this stock to
purchace, should I stick to the top 10 or top 5 or a CE score of 17 of 18.
If someone has some suggestions on tightening up my screens maybe this is
where I indeed need the advice so that I'm not stuck with these types of
decisions to make.  Maybe my alerts will signal me once a month instead o=
f
once a week for a possible buy??

JC

- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, July 20, 2003 11:23 AM
Subject: Re: [CANSLIM] Low Volume Pullback Below Pivot

> Dave & John:
>
>      I agree with Katherine.  Putting money in BE would be a risky
venture,
> under the CANSLIM protocol.
>
>      Not only is its earnings for the last 5 years volatile (to say the
> least), but there is too much overhead resistance to-in my opinion-make=
 it
> acceptable (even though it has made a nice base with a rising 200 and 5=
0
DMA.
> Additonally, the volume on its bottoms are nice and the price of the st=
ock
in
> relation to its 2 Moving Averages bodes that the stock is short term
strong).
>
>      However, the downside overtakes the upsides: Specifically, the num=
ber
of
> funds (according to DGO) investing in BE is declining.  Also, the Mgt/F=
und
> ratio (funds hold 27% of the stock, while management holds only 1%)  is
27.
> And, as I mentioned, the earnings are anything but CANSLIMMISH.
>
>      Although, the industry is fine, to me this stock seems a laggard i=
n
its
> industry.  At the most, I believe it will go up to 12=BD before pausing=
, and
> with the weakness that the Mkt. appears to be signaling, the pause in B=
E
could
> become a freefall back to its 2nd bottom of 6.
>
> jans
>
>
>
> In a message dated 7/18/2003 12:24:28 PM Eastern Daylight Time,
> kmalm@earthlink.net writes:
>
> << While BE provided entry points closer to its bottom, I don't think i=
t'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 acti=
on
>  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.
>   >>
>
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