Re: [CANSLIM] WEBX

From: Fanus <fanus13@yahoo.com>
Subject: Re: [CANSLIM] WEBX
Date: Wed, 6 Aug 2003 09:01:16 -0700 (PDT)
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CANLSIM is a long strategy and according to the rules,
you get out if you are in a bear market.  I do agree
that you can make money on the short side, but this is
a CANSLIM discussion board.  People are here to
discuss and learn CANSLIM, not a modified short
CANSLIM style.  I think this type of discussions are
better suited for a different discussion group.

Best regards
- - Fanus


- --- DMC197807 <dmc197807@comcast.net> wrote:
> P.S. [prescript]:  I can't see any reason to
> establish (or keep) a long
> position on WEBX here.  Too much risk for me.
> 
> Mark,
> 
> Welcome to the thread.  I don't have any problem
> with you posting your
> website location here; it looked pretty good to me.
> 
> On the subject of using canslim to find breakdown
> rather than breakout
> candidates, I think that's a good idea.  I'm not
> sure how we properly tweak
> the criteria, but I think it's an excellent topic
> for education here.  Why?
> Because the M in Milscan is very, very precarious
> here and I think shorts
> and puts are going to smash longs and calls over the
> next several weeks.  I
> don't see a lot more upside to the market at this
> point.  Just pulling up an
> SPX chart shows a very very tired market, and the
> path of least resistance
> looks to be southeast-, and not northeastward bound.
> 
> With that in mind, how would be alter CANSLIM to
> look for breakdowns?  [I'll
> put commentary in brackets for breakdown]
> 
> C = Current quarterly earnings per share (should
> show a major percentage
> increase compared to the prior year's same quarter)
> [Here I think you take
> all earnings up to, say 10% positive.  Why?  What we
> are looking for are
> stocks which have risen with the tide in spite of
> lukewarm or poor earnings,
> but earnings up to 30% seem too robust to produce a
> good short.]
> 
> A = Annual earnings (the company should be
> experiencing meaningful growth
> over the past five years) [Perhaps the cap on annual
> earnings growth should
> be 15%??]
> 
> N = New products, new management, new high prices [I
> don't see how to apply
> this one; I don't want to exclude new high prices,
> because we're looking for
> overvalued stocks.  Other ideas?]
> 
> S = Supply and demand (small capitalization stocks
> with high trading volume)
> [Here, having large cap elephants could be a great
> idea
> 
> L = Leader in the industry, not a laggard [here, use
> a relative strength
> rating of 60 or below?]
> 
> I = Institutional sponsorship (a little goes a long
> way) [Hmmmm.  Do we want
> high institutional ownership, or is this factor one
> to be left out
> 
> M = Market direction (should be headed up).  [This
> one goes first.  For me,
> the market is facing a lot more easy downside right
> here than upside.
> Chances of a SPX in the 600, 700, 800 range in the
> next 3-4 months is much
> greater, to me, than a SPX move to 1100, 1200,
> 1300.]
> 
> Now comes the difficulty of establishing a pivot,
> and selling at the
> breakdown of that point.
> 
> 
> 
> DMC
> 
> 
> 
> 
> 
> ----- Original Message -----
> From: "Mark Crisp"
> <stressfreetrader@btopenworld.com>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, August 06, 2003 8:17 AM
> Subject: Re: [CANSLIM] WEBX
> 
> 
> > What about using CANSLIM in reverse to find
> shorting candidates?
> >
> >  I ran this scan on my filter and came up with
> some nice looking shorting
> > candidates:
> >
> > 1 year low
> > RS <30
> > E.P.S. <30
> > Price >$30
> > Volume >250,000
> > Cap. >2.0bn
> >
> >   Looking for poor fundamental stocks that are
> falling in price. Reverese
> > CANSLIM if you like. Trade the breakouts.
> >
> >   What do you say?
> >
> >   Mark Crisp
> >  http://www.stressfreetrading.com
> >
> > ----- Original Message -----
> > From: "Jiehui" <ddloyilbshrb@iartdesign.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Wednesday, August 06, 2003 5:42 AM
> > Subject: [CANSLIM] WEBX
> >
> >
> > > Hi all,
> > >
> > > I'm a beginner in this and is still a little
> unsure of how to read
> charts.
> > I hope some of the more experienced chart readers
> on this group can help
> me.
> > >
> > > WEBX has formed the teacup w/ handle pattern and
> I mistakenly bought at
> > the volume surge thinking it's a break-out, only
> to find it went down
> 5.68%
> > >
> > > Is it forming another handle now and should I
> continue holding on to the
> > stock and wait for the handle to form or until the
> 8% stop-loss is
> reached.
> > Or should I exit my position now? Is this
> considered a failed break-out?
> > >
> > > The rating for this WEBX is currently: 97 81 73
> A+ A A-
> > >
> > > Regards,
> > > Jiehui
> >
> >
> > -
> > -To subscribe/unsubscribe, email
> "majordomo@xmission.com"
> > -In the email body, write "subscribe canslim" or
> > -"unsubscribe canslim".  Do not use quotes in your
> email.
> 
> 
> -
> -To subscribe/unsubscribe, email
> "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your
email.


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