[CANSLIM] "M"

From: "Tom Worley" <stkguru@netside.net>
Subject: [CANSLIM] "M"
Date: Thu, 4 May 2000 07:35:50 -0400

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I am encouraged by the charts of the DOW 30, NYSE Composite, and
Nasdaq. Over the past two and a half weeks, despite the extremes
of volatility we have seen, they are all showing higher lows.
Basically, a rally interrupted by fear/profit taking selloffs,
but not to new lower levels.  I am still concerned about the lack
of volume, esp on the up days, but believe this evidences a lack
of confidence in the longer term trend.

A lot of the extremes of volatility have come on days when major
names have had news, both good and bad. This may signify that
they still command leadership, even when the news is bad.

The lack of volume may well prove to be a bullish signal, as
substantial cash is still sitting on the sidelines as the indexes
inch higher overall.  Meanwhile, the strong earnings reports
coming out will help lower the valuation ratios. Undoubtedly, we
are losing some of the ridiculous premiums being paid on the more
speculative stocks, but overall this seems to be healthy for the
longer term investor.

Asian and European trading, and US futures, are inconclusive for
what today will bring. The rally late in the day yesterday on
Nasdaq is about the most hopeful sign I could find.

Tom Worley
stkguru@netside.net
chat with me at ICQ # 5568838
get ICQ software at http://www.icq.com/icqhomepage.html




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