Re: [CANSLIM] breakoutwatch

From: michael_niemotka@baxter.com
Subject: Re: [CANSLIM] breakoutwatch
Date: Wed, 20 Aug 2003 11:37:48 -0500

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Pritish,

Thanks for sharing your real life examples. I have been struggling with
how long to hold a "non performer" or laggard before selling off and moving
on, after I have purchased it from a breakout. I have been giving stocks
about two weeks to be moving up, and if not, I start to look elsewhere.

One thing that I would caution everyone to look at though is the volume
action associated with the lack of movement. As an example, I bought ANSS
on 6/19, and after 3 weeks I was at a 10% gain, as it moved up (it did drop
below pivot, but only slightly along the way). It then went flat for 5
weeks, but I noticed that the volume was well below average, so I looked at
it as a flat base on top of the CWH. I placed a stop loss at break even,
and decided to watch for a while. It now appears that it is breaking out
for a second time, and I am now up 18% from original purchase.

It has reinforced the importance of watching the price / volume
interaction.

Mike

P.S. one of these days I will figure out how to include a graphic so I can
annotate a chart.

Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com

"Pritish Shah"
<pshah@lason.com> To: JHend746@cox.net, canslim@lists.xmission.com
Sent by: cc:
owner-canslim@lists.xm Subject: Re: [CANSLIM] breakoutwatch
ission.com

08/20/2003 11:10 AM
Please respond to
canslim

My opinion of this site is great. I do not look at the CE/CQ. I buy a
breakout if there is positive news preceeding the breakout. That seems
to have worked the best for me.

My latest examples are AUO (+21% - sold), ESI(+30%), NTST(+4%),
ESPD(+5%), TUES (+16%), CCMP (+4%), WFSI(+43%). All these I bought based
on breakoutwatch.com email alerts.

I think what matters more than CE/CQ is the chart action based upon the
news. The chart tells you whether people like the news or hate the news.
I have the trust that breakoutwatch has already scanned and only put the
stocks with best CE/CQ in the list to begin with. With that in mind, I
do not look at CE/CQ.

Plus, if I buy some stock and nothing happens in it for a week, I sell
it off -- does not matter if the loss is 1% or 5%. My recent sells are
basically happening fast around 6-7% no matter what.

I am in the process of compiling an excel spreadsheet to identify what
works. I will have it done in the next few days and I will share it with
the group if breakoutwatch.com allows.

Pritish

>>> JHend746@cox.net 8/20/2003 11:54:36 AM >>>
For those of you that use breakout watch, I have a few questions:
1) Do you buy as soon as you get an alert or do you filter for
chart quality and the CE value to determine what do buy?
2) What is your opinion overall for the site?

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