CANSLIM & Momentum Investing 01 (May 08 - Jul 09)

Re: CANSLIM & Momentum Investing

Postby Aspellian » Fri Jun 05, 2009 1:48 pm

winston wrote:Hi A,

There's also a "Warrants" thread, a "Short-Selling & Buying Puts" thread and a "CFD" thread in the "Other Investment Ideas" section.

Take care,
Winston


Noted Winston, thanks for pointing it out to me. :D

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Re: CANSLIM & Momentum Investing

Postby Aspellian » Thu Jun 11, 2009 6:32 pm

millionairemind wrote:The periods that you mentioned with selloffs coincided with periods of market corrections.

Feb 28 - March 22 2007
Jul 26 - Aug 29, 2007
Nov 9 - Nov 28, 2007
Jan 3 - Mar 24, 2008

Hope this helps.

Regards,
mm


Hi MM da-ge,

when is the next correction after Mar 24, 2008? I have the following dates, will appreciate if you can help to countercheck:

anything between Mar 24 to May 21, 2008?
May 21 - July 29, 2008
Sept 4 - ????, 2008
Nov 7 - Dec 2, 2008
Jan 13 - Jan 28, 2009

your help is greatly appreciated! ;)

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Re: CANSLIM & Momentum Investing

Postby millionairemind » Thu Jun 11, 2009 7:10 pm

wah A bro, you are making me work very hard today. Its the (school) holidays lah.. :P

From March 24 to May 21 was a market uptrend.
Sept 4- Oct 17. Oct 17 was the follow thro' which quickly failed on Oct 22, overwhelmed by the selling.

Easier just for me to show you the uptrends that lasted.
2Dec 08 - 12 Jan 09
12 March 09 - current..

All the corrections were preceded by a total of 5-6 distribution days in close succession.

Hope this helps.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: CANSLIM & Momentum Investing

Postby Aspellian » Thu Jun 11, 2009 10:50 pm

Hi MM bro,

pai sei lah... i tried not to ask u (try to work hard instead of being spoon-feed).. so did the hard way (and time consuming way) of tracking day to day but there's limited historical data and sometimes the dates on the website not accurate...

but thanks alot!!!!!! really appreciate your help (always). ;)

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Re: CANSLIM & Momentum Investing

Postby Aspellian » Fri Jun 12, 2009 9:48 am

Hi MM da-ge,

some more questions on CANSLIM,

understand that in an uptrend, you hold on to leading stocks and ride the boom. What if the stocks dropped and cut below 50DMA on high volume (but still way above your purchase price; ie. 7% cut loss not reach)... do you usually take profits or continue to ride it out?

For me, i will probably take profits on half and ride the other half - risk management and for future upside...
But on the other hand, O'Neil preaches certain rules on selling - i just not sure super high volume + down in price, is it of any high alarm.

PS: I am actually referring to Neutral Tandem - dropped 10% on double the volume (i do not own Neutral stocks - ie I am a NEUTRAL:lol: , just trying to learn).

MM, do let me know if you find that i ask too much questions on CANSLIM and you find it a nuisance, no hard feelings. ;)

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Re: CANSLIM & Momentum Investing

Postby millionairemind » Fri Jun 12, 2009 10:13 am

If it breaks 50DMA on very high volume, usually a warning sign. I will cut out and take my profit.

Edited to include the following:

Have you read about Nicholas Darvas, A bro?? You might want to pick up his books. He has this box theory that say when a stock is hovering around 50-55, he will buy it once it breaks into a new high, say at 56.

When it has moved up to the next box say 70-75 and it breaks out of the 70box, he will sell it immediately, but keep watching it till it breaks out of the 75 box and he will buy it back again.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: CANSLIM & Momentum Investing

Postby Aspellian » Fri Jun 12, 2009 12:00 pm

millionairemind wrote:If it breaks 50DMA on very high volume, usually a warning sign. I will cut out and take my profit.

Edited to include the following:

Have you read about Nicholas Darvas, A bro?? You might want to pick up his books. He has this box theory that say when a stock is hovering around 50-55, he will buy it once it breaks into a new high, say at 56.

When it has moved up to the next box say 70-75 and it breaks out of the 70box, he will sell it immediately, but keep watching it till it breaks out of the 75 box and he will buy it back again.


True on getting out - makes sense not to fight the market. if a large shareholder is unloading (for whatever reasons), even in an uptrend, its best to get out less get trampled by the elephants.

thanks for the recommendation. is it the book "How I Made $2,000,000 in the Stock Market"?

in the past i never believe technicals, volumes etc etc (my mind was close shut!) - but now alot of things make sense as my mind slowly open (used to be too high ego :twisted: ).

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Re: CANSLIM & Momentum Investing

Postby millionairemind » Fri Jun 12, 2009 8:49 pm

His other book - You can still make it in the market is a pretty good read too. It's available only from Amazon, I think.

He wrote it at the end of the 73/74 bear market, which is not dis-similar to what we are seeing now.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: CANSLIM & Momentum Investing

Postby Aspellian » Fri Jun 12, 2009 11:54 pm

Noted. will check out the book. Gam-sia! ;)

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Re: CANSLIM & Momentum Investing

Postby Aspellian » Thu Jun 18, 2009 9:20 am

Hi MM,

Like to clarify on the following:

Last night - both S&P and Dow edged down slightly of 0.1% each on higher volume. NYSE down 0.4% (higher vol).

Qn - why is it only NYSE logged with a distribution day but not S&P and Dow? Immaterial/inconclusive down %? If so, usually how much % down do one considers before logging a distribution day? (I dun remember reading this in ONeil.)

Thanks!

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