[CANSLIM] Re:stocks at the top (was short selling (WEBX) )

From: "Rolf Hertenstein" <rolfh@mindspring.com>
Subject: [CANSLIM] Re:stocks at the top (was short selling (WEBX) )
Date: Wed, 13 Aug 2003 10:13:33 -0600

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Right *at* the top is trickier.  When I first read the question, I thought
of, e.g., a Head & Shoulders Top, but by the time that formation is
complete, it's already topped.  Climax tops are a possibility, but where is
*the* top as it's still going up?  I thought TASR for instance was likely
done at the end of July after quickly running from $12 to $20.  But now it
climaxed the climax to $25+.  Was yesterday finally *the* top, since it did
close well below the high on extremely high volume? Dunno.  Same for PDII.
Most other technicals, like a quick slice down through the 50 DMA, are
telling me that a top may have already happened.

Generally, I watch the price/volume action for decelerating price rise,
especially on higher volume, and especially if higher volume days are also
down days, to warn that a top may be approaching.  This is also pretty much
the way I try to gauge the markets as a whole.  Nothing fancy.

I'll be interested to hear other ideas.

 Rolf

- ----- Original Message -----
From: "Katherine Malm" <kmalm@earthlink.net>


> Hi Harold (and all),
>
> Let's do this for the sake of discussion on the subject. Instead of me
> simply listing how one (or I) would go about screening for failed tops,
let
> me ask of the group a preliminary question:
>
> What does a stock look like technically when it is *at* a top?



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