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canslim-digest         Tuesday, July 15 2003         Volume 02 : Number 3417



In this issue:

       Re: [CANSLIM] 52-weeks hi/low versus industry group ranking
       [CANSLIM] dumb question...
       RE: [CANSLIM] dumb question...
       RE: [CANSLIM] dumb question...
       RE: [CANSLIM] dumb question...
       Re: [CANSLIM] 52-weeks hi/low versus industry group ranking
       Re: [CANSLIM] AAII letter to the editor
       RE: [CANSLIM] 52-weeks hi/low versus industry group ranking
       Re: [CANSLIM] Break outs or pullbacks
       [CANSLIM] RE
       [CANSLIM] Deduction Subject to 2% Limit
       RE: [CANSLIM] 52-weeks hi/low versus industry group ranking

----------------------------------------------------------------------

Date: Mon, 14 Jul 2003 19:42:27 -1000
From: "Roger" <[e-mail]>
Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking

Aloha Gene/Tomas
So if your not IBD's group rankings what are you using
Aloha
Roger
- ----- Original Message -----
From: "Tomas" <[e-mail]>
To: <[e-mail]>
Sent: Monday, July 14, 2003 6:16 PM
Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking


> Gene,
>
> Yea, I am beginning to realize that.  With Katherine's
> comprehensive answer and your confirmation, I will not
> use IBD's group ranking anymore (not that I was using
> it heavily before anyways).
>
> thanks,
> tomas
>
> --- Gene Ricci <[e-mail]> wrote:
> > Tomas, I have found that IBD's industry rankings to
> > be too slow to be of any worth... other than to get
> > you into a hot industry later than other services
> > (HGSI and VectorVest) and keeping you there long
> > after you should have exited. Of the three:
> > 1) VectorVest - fastest
> > 2) HGSI - not quite as fast
> > 3) IBD/DGO - too slow to be used for 'tops down'
> > approach (my opinion)
> >
> > Gene
> >   ----- Original Message -----
> >   From: Tomas
> >   To: canslim canslim
> >   Sent: Sunday, July 13, 2003 11:07 PM
> >   Subject: [CANSLIM] 52-weeks hi/low versus industry
> > group ranking
> >
> >
> >   I noticed that there is a big discrepancy between
> > the
> >   52-weeks hi/low and industry group ranking in IBD.
> >
> >   Looks like Internet-Content group has been ranked
> > 1
> >   for for the last few weeks.  However, most of the
> >   stocks making new highs report in the 52-weeks
> > hi/low
> >   is in the medical, banks and business svc groups.
> > Why
> >   is that?  Is the group ranking way off?
> >
> >   Regards,
> >   tomas
> >
> >   __________________________________
> >   Do you Yahoo!?
> >   SBC Yahoo! DSL - Now only $29.95 per month!
> >   http://sbc.yahoo.com
> >
> >   -
> >   -To subscribe/unsubscribe, email
> > "[e-mail]"
> >   -In the email body, write "subscribe canslim" or
> >   -"unsubscribe canslim".  Do not use quotes in your
> > email.
> >
>
>
> __________________________________
> Do you Yahoo!?
> SBC Yahoo! DSL - Now only $29.95 per month!
> http://sbc.yahoo.com
>
> -
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------------------------------

Date: Tue, 15 Jul 2003 07:45:26 -0500
From: Mike Baudino <[e-mail]>
Subject: [CANSLIM] dumb question...

Sorry folks, but is the money we spend on IBD and/or breakoutwatch.com,
etc, etc, etc deductible against the capital gains for purposes of
calculating the capital gains taxes?



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------------------------------

Date: Tue, 15 Jul 2003 08:53:36 -0500
From: "Katherine Malm" <[e-mail]>
Subject: RE: [CANSLIM] dumb question...

Hi Mike,

It's worth it to keep track of the expenses (investing related books,
courses, subscriptions, etc.) though most folks can't take advantage of
them. These go on your itemized Misc. Deductions sheet, so must exceed 2% of
your adjusted gross income before they kick in.

Katherine

- -----Original Message-----
From: [e-mail]
[mailto:[e-mail]]On Behalf Of Mike Baudino
Sent: Tuesday, July 15, 2003 6:45 AM
To: [e-mail]
Subject: [CANSLIM] dumb question...






Sorry folks, but is the money we spend on IBD and/or breakoutwatch.com,
etc, etc, etc deductible against the capital gains for purposes of
calculating the capital gains taxes?



******************* PLEASE NOTE *******************
This E-Mail/telefax message and any documents accompanying this
transmission may contain privileged and/or confidential information and is
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------------------------------

Date: Tue, 15 Jul 2003 10:06:08 -0400
From: "Pritish Shah" <[e-mail]>
Subject: RE: [CANSLIM] dumb question...

Katherine,

I have been able to deduct all the investment related expenses via Turbo =
Tax software. Are there any conditions under which you do not have to =
exceed 2% of AGI?

Pritish



>>> [e-mail] 07/15/03 09:53AM >>>
Hi Mike,

It's worth it to keep track of the expenses (investing related books,
courses, subscriptions, etc.) though most folks can't take advantage of
them. These go on your itemized Misc. Deductions sheet, so must exceed 2% =
of
your adjusted gross income before they kick in.

Katherine

- -----Original Message-----
From: [e-mail]=20
[mailto:[e-mail]]On Behalf Of Mike Baudino
Sent: Tuesday, July 15, 2003 6:45 AM
To: [e-mail]=20
Subject: [CANSLIM] dumb question...






Sorry folks, but is the money we spend on IBD and/or breakoutwatch.com,
etc, etc, etc deductible against the capital gains for purposes of
calculating the capital gains taxes?



******************* PLEASE NOTE *******************
This E-Mail/telefax message and any documents accompanying this
transmission may contain privileged and/or confidential information and is
intended solely for the addressee(s) named above.  If you are not the
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------------------------------

Date: Tue, 15 Jul 2003 09:12:25 -0500
From: "Katherine Malm" <[e-mail]>
Subject: RE: [CANSLIM] dumb question...

Hi Pritish,

Not according to my accountant, but she's ultraconservative, so I honestly
can't say. Might be worth a search on Google to find out. From what I
remember, there are also a few tax prep people here on the list, so maybe
they can shed some better-informed light on the subject than can I.

Katherine

- -----Original Message-----
From: [e-mail]
[mailto:[e-mail]]On Behalf Of Pritish Shah
Sent: Tuesday, July 15, 2003 8:06 AM
To: [e-mail]
Subject: RE: [CANSLIM] dumb question...


Katherine,

I have been able to deduct all the investment related expenses via Turbo Tax
software. Are there any conditions under which you do not have to exceed 2%
of AGI?

Pritish



>>> [e-mail] 07/15/03 09:53AM >>>
Hi Mike,

It's worth it to keep track of the expenses (investing related books,
courses, subscriptions, etc.) though most folks can't take advantage of
them. These go on your itemized Misc. Deductions sheet, so must exceed 2% of
your adjusted gross income before they kick in.

Katherine

- -----Original Message-----
From: [e-mail]
[mailto:[e-mail]]On Behalf Of Mike Baudino
Sent: Tuesday, July 15, 2003 6:45 AM
To: [e-mail]
Subject: [CANSLIM] dumb question...






Sorry folks, but is the money we spend on IBD and/or breakoutwatch.com,
etc, etc, etc deductible against the capital gains for purposes of
calculating the capital gains taxes?



******************* PLEASE NOTE *******************
This E-Mail/telefax message and any documents accompanying this
transmission may contain privileged and/or confidential information and is
intended solely for the addressee(s) named above.  If you are not the
intended addressee/recipient, you are hereby notified that any use of,
disclosure, copying, distribution, or reliance on the contents of this
E-Mail/telefax information is strictly prohibited and may result in legal
action against you. Please reply to the sender advising of the error in
transmission and immediately delete/destroy the message and any
accompanying documents.  Thank you.


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------------------------------

Date: Tue, 15 Jul 2003 09:16:32 -0500
From: "Gene Ricci" <[e-mail]>
Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking

This is a multi-part message in MIME format.

- ------=_NextPart_000_008A_01C34AB1.C86820C0
Content-Type: text/plain;
    charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

Roger,=20

 > 1) VectorVest - fastest=20
> > 2) HGSI - not quite as fast=20

Gene
  ----- Original Message -----=20
  From: Roger=20
  To: [e-mail]=20
  Sent: Tuesday, July 15, 2003 12:42 AM
  Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking


  Aloha Gene/Tomas
  So if your not IBD's group rankings what are you using
  Aloha
  Roger
  ----- Original Message -----=20
  From: "Tomas" <[e-mail]>
  To: <[e-mail]>
  Sent: Monday, July 14, 2003 6:16 PM
  Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking


  > Gene,
  >=20
  > Yea, I am beginning to realize that.  With Katherine's
  > comprehensive answer and your confirmation, I will not
  > use IBD's group ranking anymore (not that I was using
  > it heavily before anyways).
  >=20
  > thanks,
  > tomas
  >=20
  > --- Gene Ricci <[e-mail]> wrote:
  > > Tomas, I have found that IBD's industry rankings to
  > > be too slow to be of any worth... other than to get
  > > you into a hot industry later than other services
  > > (HGSI and VectorVest) and keeping you there long
  > > after you should have exited. Of the three:
  > > 1) VectorVest - fastest=20
  > > 2) HGSI - not quite as fast=20
  > > 3) IBD/DGO - too slow to be used for 'tops down'
  > > approach (my opinion)
  > >=20
  > > Gene
  > >   ----- Original Message -----=20
  > >   From: Tomas=20
  > >   To: canslim canslim=20
  > >   Sent: Sunday, July 13, 2003 11:07 PM
  > >   Subject: [CANSLIM] 52-weeks hi/low versus industry
  > > group ranking
  > >=20
  > >=20
  > >   I noticed that there is a big discrepancy between
  > > the
  > >   52-weeks hi/low and industry group ranking in IBD.
  > >=20
  > >   Looks like Internet-Content group has been ranked
  > > 1
  > >   for for the last few weeks.  However, most of the
  > >   stocks making new highs report in the 52-weeks
  > > hi/low
  > >   is in the medical, banks and business svc groups.=20
  > > Why
  > >   is that?  Is the group ranking way off?
  > >=20
  > >   Regards,
  > >   tomas
  > >=20
  > >   __________________________________
  > >   Do you Yahoo!?
  > >   SBC Yahoo! DSL - Now only $29.95 per month!
  > >   http://sbc.yahoo.com
  > >=20
  > >   -
  > >   -To subscribe/unsubscribe, email
  > > "[e-mail]"
  > >   -In the email body, write "subscribe canslim" or
  > >   -"unsubscribe canslim".  Do not use quotes in your
  > > email.
  > >=20
  >=20
  >=20
  > __________________________________
  > Do you Yahoo!?
  > SBC Yahoo! DSL - Now only $29.95 per month!
  > http://sbc.yahoo.com
  >=20
  > -
  > -To subscribe/unsubscribe, email "[e-mail]"
  > -In the email body, write "subscribe canslim" or
  > -"unsubscribe canslim".  Do not use quotes in your email.


  -
  -To subscribe/unsubscribe, email "[e-mail]"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.

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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2800.1106" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT face=3D"Comic Sans MS">Roger, </FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV> > 1) VectorVest - fastest <BR>> > 2) HGSI - not =
quite as=20
fast <BR></DIV>
<DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=[e-mail]=20
  href=3D"mailto:[e-mail]">Roger</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=[e-mail]=20
  =
href=3D"mailto:[e-mail]">[e-mail]</A>=
 </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 15, 2003 =
12:42=20
  AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] 52-weeks =
hi/low=20
  versus industry group ranking</DIV>
  <DIV><BR></DIV>Aloha Gene/Tomas<BR>So if your not IBD's group rankings =
what=20
  are you using<BR>Aloha<BR>Roger<BR>----- Original Message ----- =
<BR>From:=20
  "Tomas" <<A=20
  href=3D"mailto:[e-mail]">[e-mail]</A>><BR>To: =
<<A=20
  =
href=3D"mailto:[e-mail]">[e-mail]</A>=
><BR>Sent:=20
  Monday, July 14, 2003 6:16 PM<BR>Subject: Re: [CANSLIM] 52-weeks =
hi/low versus=20
  industry group ranking<BR><BR><BR>> Gene,<BR>> <BR>> Yea, I =
am=20
  beginning to realize that.  With Katherine's<BR>> =
comprehensive answer=20
  and your confirmation, I will not<BR>> use IBD's group ranking =
anymore (not=20
  that I was using<BR>> it heavily before anyways).<BR>> <BR>>=20
  thanks,<BR>> tomas<BR>> <BR>> --- Gene Ricci <<A=20
  href=3D"mailto:[e-mail]">[e-mail]</A>> wrote:<BR>> =
>=20
  Tomas, I have found that IBD's industry rankings to<BR>> > be =
too slow=20
  to be of any worth... other than to get<BR>> > you into a hot =
industry=20
  later than other services<BR>> > (HGSI and VectorVest) and =
keeping you=20
  there long<BR>> > after you should have exited. Of the =
three:<BR>>=20
  > 1) VectorVest - fastest <BR>> > 2) HGSI - not quite as fast =

  <BR>> > 3) IBD/DGO - too slow to be used for 'tops down'<BR>> =
>=20
  approach (my opinion)<BR>> > <BR>> > Gene<BR>> =
>  =20
  ----- Original Message ----- <BR>> >   From: Tomas =
<BR>>=20
  >   To: canslim canslim <BR>> >   Sent: =
Sunday,=20
  July 13, 2003 11:07 PM<BR>> >   Subject: [CANSLIM] =
52-weeks=20
  hi/low versus industry<BR>> > group ranking<BR>> > =
<BR>> >=20
  <BR>> >   I noticed that there is a big discrepancy=20
  between<BR>> > the<BR>> >   52-weeks hi/low and =
industry=20
  group ranking in IBD.<BR>> > <BR>> >   Looks =
like=20
  Internet-Content group has been ranked<BR>> > 1<BR>> =
>  =20
  for for the last few weeks.  However, most of the<BR>>=20
  >   stocks making new highs report in the =
52-weeks<BR>> >=20
  hi/low<BR>> >   is in the medical, banks and business =
svc=20
  groups. <BR>> > Why<BR>> >   is that?  Is =
the group=20
  ranking way off?<BR>> > <BR>> >   =
Regards,<BR>>=20
  >   tomas<BR>> > <BR>> >  =20
  __________________________________<BR>> >   Do you=20
  Yahoo!?<BR>> >   SBC Yahoo! DSL - Now only $29.95 per=20
  month!<BR>> >   <A=20
  href=3D"http://sbc.yahoo.com">http://sbc.yahoo.com</A><BR>> > =
<BR>>=20
  >   -<BR>> >   -To subscribe/unsubscribe, =

  email<BR>> > "<A=20
  =
href=3D"mailto:[e-mail]">[e-mail]</A>"<BR>>=
;=20
  >   -In the email body, write "subscribe canslim" =
or<BR>>=20
  >   -"unsubscribe canslim".  Do not use quotes in=20
  your<BR>> > email.<BR>> > <BR>> <BR>> <BR>>=20
  __________________________________<BR>> Do you Yahoo!?<BR>> SBC =
Yahoo!=20
  DSL - Now only $29.95 per month!<BR>> <A=20
  href=3D"http://sbc.yahoo.com">http://sbc.yahoo.com</A><BR>> =
<BR>>=20
  -<BR>> -To subscribe/unsubscribe, email "<A=20
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; -In=20
  the email body, write "subscribe canslim" or<BR>> -"unsubscribe=20
  canslim".  Do not use quotes in your email.<BR><BR><BR>-<BR>-To=20
  subscribe/unsubscribe, email "<A=20
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------------------------------

Date: Tue, 15 Jul 2003 09:41:03 -0400
From: "Charles & Lois Layne" <[e-mail]>
Subject: Re: [CANSLIM] AAII letter to the editor

- ----- Original Message -----

>
> "Finally, after three years and 25% to 35% or more annual deterioration in
> investors' stock portfolios," says Ford, "Investor's Business Daily
finally
> advised readers to go to cash - a recommendation that, if acted upon,
would
> have effectively crystallized losses and kept investors from participating
> in the market increases only a month later."
>
> Ouch!

I consider this a clear reminder for investors/traders to implement their
own trading rules and not depend on someone else.  Personalized trading
rules may be based on others' research and systems, such as CANSLIM, but
they need to be personalized and implemented by the individual.  In this
case, if one is utilizing CANSLIM principles, why wait for WON to say "get
out of the market" when CANSLIM applied principles say "get out of the
market?"

I was burned similarly in my only venture into the Motley Fool's
modifications of the Dow theories.  I read their material, did the research,
and decided it was viable.  I bought the appropriate Dow stocks at the time
and waited for the cycle.  Miserable times awaited.  One was delisted during
my holding period and another was just in time for tobacco lawsuits
pressures (any guesses on which one that was?).  To top it off, within two
years from my point of entry, the Motley Fools sort of disbanded their
theories.

The moral of my story is that I have learned over and over that it is far
better for me to know what I am trying to do than to wait for someone else
to tell me what to do.  It's cheaper, too.  And always remember: there's no
such thing as a free lunch (although I'd still like to at least get what I
pay for!).


Chuck Layne




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------------------------------

Date: Tue, 15 Jul 2003 10:07:07 -0500
From: "Ron Brown" <[e-mail]>
Subject: RE: [CANSLIM] 52-weeks hi/low versus industry group ranking

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Hi Gene,

This is Ron Brown from the HGS Investors board.

I am not familiar with V V's groups, but as you well know, you can set your
you own time frame in HGSI for group rotation in addition to standard Ian
Slow and Ian Fast and Wilder, we are able to make our own settings based on
% price changes over any length of time.

Personally, I look at % price changes for one day, since the beginning of
the week, and five day changes to see if short term strength is confirming
long term group strength.  If not, this may be an indication of early
rotation in or out of a group.

I just rejoined this mailing list, and will not plug HGSI, but I will be
available to answer questions.  The answers may not be immediate, but I will
answer questions when I have time.

Ron
  -----Original Message-----
  From: [e-mail]
[mailto:[e-mail]]On Behalf Of Gene Ricci
  Sent: Tuesday, July 15, 2003 9:17 AM
  To: [e-mail]
  Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking


  Roger,

   > 1) VectorVest - fastest
  > > 2) HGSI - not quite as fast

  Gene

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<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>Hi=20
Gene,</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>This=20
is Ron Brown from the HGS Investors board.  </SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>I am=20
not familiar with V V's groups, but as you well know, you can set =
your you=20
own time frame in HGSI for group rotation <FONT size=3D2>in addition to =
standard=20
Ian Slow and Ian Fast and Wilder, we are able to make our own settings =
based on=20
% price changes over any length of time.</FONT></SPAN></FONT><FONT =
face=3DArial=20
color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003></SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003>Personally, I look at % price changes for one =
day,=20
since the beginning of the week, and five day changes to see if =
short term=20
strength is confirming long term group strength.  If not, this may =
be an=20
indication of early rotation in or out of a group.</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>I just=20
rejoined this mailing list, and will not plug HGSI, but I will be =
available to=20
answer questions.  The answers may not be immediate, but I =
will answer=20
questions when I have time.</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D710395114-15072003>Ron</SPAN></FONT></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
  <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
  size=3D2>-----Original Message-----<BR><B>From:</B>=20
  [e-mail]=20
  [mailto:[e-mail]]<B>On Behalf Of </B>Gene=20
  Ricci<BR><B>Sent:</B> Tuesday, July 15, 2003 9:17 AM<BR><B>To:</B>=20
  [e-mail]<BR><B>Subject:</B> Re: [CANSLIM] 52-weeks =
hi/low=20
  versus industry group ranking<BR><BR></FONT></DIV>
  <DIV><FONT face=3D"Comic Sans MS">Roger, </FONT></DIV>
  <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
  <DIV> > 1) VectorVest - fastest <BR>> > 2) HGSI - not =
quite as=20
  fast <BR></DIV>
  <DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV>
  <BLOCKQUOTE=20
  style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"><FONT=20
    face=3DArial =
size=3D2></FONT> </BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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------------------------------

Date: Tue, 15 Jul 2003 11:24:01 EDT
From: [e-mail]
Subject: Re: [CANSLIM] Break outs or pullbacks

In a message dated 7/14/03 11:11:34 PM Eastern Daylight Time,
[e-mail] writes:

<< http://beta.finance.yahoo.com/q/it?s=SFCC >>


Thank you very much!

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------------------------------

Date: Tue, 15 Jul 2003 08:26:09 -0700
From: "Richard Tafoya" <[e-mail]>
Subject: [CANSLIM] RE

Anyone keeping an eye on RE? I like the fundies and I've been eyeing
this one as a CWH candidate since noticing it on a watch list at Amateur
Investors.

It was looking like volume and price were pushing for a breakout today.
I took a small position at what looked like a pullback just above the
pivot and it's retreated since, more or less tracking with the Dow
pullback since mid-day. It's not anywhere near my stop area, but it's
always rough taking a position and watching the numbers almost
immediately run red on you.

Any opinions as to the quality of this CWH formation? I'm seeing about a
two-year cup and what appears to be a nice shakeout over a multi-week
handle. It does look like volume in the handle got a little hot the day
that Yahoo announced and the market retreated.

Any other insights would be appreciated.

Richard



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------------------------------

Date: Tue, 15 Jul 2003 10:35:04 -0500
From: "Gene Ricci" <[e-mail]>
Subject: [CANSLIM] Deduction Subject to 2% Limit

This is a multi-part message in MIME format.

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Sorry folks, but is the money we spend on IBD and/or breakoutwatch.com, =
etc, etc, etc deductible against the capital gains for purposes of =
calculating the capital gains taxes?  Mike Baudino
- -------------------------------------------------------------------------=
- ---------------

Mike, see the paragraphs relating to Investment-Related Expenses below. =
Take note of my highlighted areas. Make sure that your expenses apply to =
generating taxable income. The IRS may ask you to show proof of your =
trading activity if your Schedule D has only a few entries. Based on =
personal experience (2 audits passed), if you keep receipts and a =
trading log you'll not have a problem .... I didn't.

Check out this info:  http://www.irs.gov/pub/irs-pdf/p529.pdf

Gene


Deduction Subject to 2% Limit

Although the range of acceptable miscellaneous expenses is broad, it's =
tough to cash in. Most miscellaneous expenses are deductible only to the =
extent their combined cost exceeds 2% of your adjusted gross income.

Qualifying costs fall in three basic categories:

  Employee Business Expenses
  Investment-Related Expenses
  Tax-Related Expenses

Investment-Related Expenses

Money you spend in the pursuit of taxable investment income qualifies as =
a deductible miscellaneous expense, including the following costs:

  a.. Custodial fees for your individual retirement account.
  b.. Rental of a safe-deposit box used to store taxable securities.
  c.. Investment counselor or management fees.
  d.. The cost of subscriptions to investment-advisory newsletters.
  e.. The cost of books and magazines you buy for investment advice.
  f.. The cost of computer software or on-line services to track your =
investments.
  g.. The cost of travel to see your broker to check on your portfolio =
or to buy or sell investments.
  h.. State and local transfer taxes on the sale of securities.
  i.. Fees paid to a broker or other agent to collect bond interest or =
stock dividends. (Unlike commissions paid to brokers on the purchase of =
stock-a cost which is added to basis-this type of fee is deductible.)
  j.. Cost of travel to see your broker to discuss investments. (This =
does not include simply dropping by the broker's office to check on the =
general condition of the market or to watch the ticker tape.) If you =
drive your own car, you can deduct the actual cost or the IRS standard =
rate, which is 36.5 cents a mile for 2002. Whether you use the actual =
cost or standard rate, add what you paid for parking or tolls.

There is no uncertainty about one kind of investment expense that used =
to be deductible: The cost of attending an investment convention, =
seminar or similar meeting. Such write-offs are now forbidden.

If you use a computer to analyze or track your investments, you may =
include
in your miscellaneous expenses an amount for depreciation as long as you
keep careful records that break down the amount of time you use the =
machine
for investment versus personal purposes. The depreciation deduction is =
sure
to be modest.

If you have a $3,000 computer that you use 20% of the time on your
investments, for example, the first-year depreciation deduction would be
just $60. The first-year write-off for a computer not used more than =
half
the time for business is 10% of the qualifying cost. In this example, =
the
qualifying cost is $600 (20% of $3,000). That's not much, but every =
dollar
counts when you're trying to scale the 2% cliff between you and any
miscellaneous deductions.

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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2800.1106" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT face=3D"Comic Sans MS"></FONT><BR></DIV>
<DIV>Sorry folks, but is the money we spend on IBD and/or =
breakoutwatch.com,=20
etc, etc, etc deductible against the capital gains for purposes of =
calculating=20
the capital gains taxes?  Mike Baudino</DIV>
<DIV>--------------------------------------------------------------------=
- --------------------</DIV>
<DIV><BR><FONT face=3D"Comic Sans MS">Mike, see the paragraphs relating =
to=20
Investment-Related Expenses below. Take note of my highlighted areas. =
Make sure=20
that your expenses apply to <U><STRONG><FONT color=3D#ff0000>generating =
taxable=20
income.</FONT></STRONG></U> The IRS may ask you to show proof of your =
trading=20
activity if your Schedule D has only a few entries. Based on =
personal=20
experience (2 audits passed), if you keep receipts and a trading =
log you'll=20
not have a problem .... I didn't.</FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS">Check out this info:  <A=20
href=3D"http://www.irs.gov/pub/irs-pdf/p529.pdf">http://www.irs.gov/pub/i=
rs-pdf/p529.pdf</A></FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV><FONT=20
face=3D"Comic Sans MS"></FONT><FONT face=3D"Comic Sans MS"></FONT>
<DIV><BR><BR><U>Deduction Subject to 2% Limit</U></DIV>
<DIV><U></U><BR>Although the range of acceptable miscellaneous expenses =
is=20
broad, it's tough to cash in. Most miscellaneous expenses are deductible =
only to=20
the extent their combined cost exceeds 2% of your adjusted gross=20
income.<BR><BR>Qualifying costs fall in three basic =
categories:<BR><BR> =20
Employee Business Expenses<BR>  Investment-Related =
Expenses<BR> =20
Tax-Related Expenses</DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT><BR>Investment-Related =
Expenses</DIV>
<DIV><BR><FONT color=3D#ff0000 size=3D5>Money you spend in the pursuit =
of <U>taxable=20
investment income</U> qualifies as a deductible miscellaneous expense, =
including=20
the following costs:<BR></FONT><BR>  a.. Custodial fees for your =
individual=20
retirement account.<BR>  b.. Rental of a safe-deposit box used to =
store=20
taxable securities.<BR>  c.. Investment counselor or management=20
fees.<BR>  d.. The cost of subscriptions to investment-advisory=20
newsletters.<BR>  e.. The cost of books and magazines you buy for=20
investment advice.<BR>  f.. The cost of computer software or =
on-line=20
services to track your investments.<BR>  g.. The cost of travel to =
see your=20
broker to check on your portfolio or to buy or sell =
investments.<BR>  h..=20
State and local transfer taxes on the sale of securities.<BR>  i.. =
Fees=20
paid to a broker or other agent to collect bond interest or stock =
dividends.=20
(Unlike commissions paid to brokers on the purchase of stock-a cost =
which is=20
added to basis-this type of fee is deductible.)<BR>  j.. Cost of =
travel to=20
see your broker to discuss investments. (This does not include simply =
dropping=20
by the broker's office to check on the general condition of the market =
or to=20
watch the ticker tape.) If you drive your own car, you can deduct the =
actual=20
cost or the IRS standard rate, which is 36.5 cents a mile for 2002. =
Whether you=20
use the actual cost or standard rate, add what you paid for parking or=20
tolls.</DIV>
<DIV><BR><STRONG><FONT color=3D#ff0000 size=3D4>There is no uncertainty =
about one=20
kind of investment expense that used to be deductible: The cost of =
attending an=20
investment convention, seminar or similar meeting. <U>Such write-offs =
are now=20
forbidden.</U></FONT></STRONG><BR><BR>If you use a computer to analyze =
or track=20
your investments, you may include<BR>in your miscellaneous expenses an =
amount=20
for depreciation as long as you<BR>keep careful records that break down =
the=20
amount of time you use the machine<BR>for investment versus personal =
purposes.=20
The depreciation deduction is sure<BR>to be modest.<BR><BR>If you have a =
$3,000=20
computer that you use 20% of the time on your<BR>investments, for =
example, the=20
first-year depreciation deduction would be<BR>just $60. The first-year =
write-off=20
for a computer not used more than half<BR>the time for business is 10% =
of the=20
qualifying cost. In this example, the<BR>qualifying cost is $600 (20% of =

$3,000). That's not much, but every dollar<BR>counts when you're trying =
to scale=20
the 2% cliff between you and any<BR>miscellaneous=20
deductions.<BR></DIV></BODY></HTML>

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- -"unsubscribe canslim".  Do not use quotes in your email.

------------------------------

Date: Tue, 15 Jul 2003 10:37:30 -0500
From: "Katherine Malm" <[e-mail]>
Subject: RE: [CANSLIM] 52-weeks hi/low versus industry group ranking

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Hi Ron,

Welcome back.

I thought I would add a description of the VV industry ranks to round out the
comparison of HGSI, DGO and VV:

VectorVest (VV) uses a proprietary indicator called RT (Relative Timing) as the
basis for their group rankings. Each stock in the database is assigned an RT and
all stocks in an industry, regardless of price, are then averaged to create the
RT for the industry itself. The value of the average RT for an industry is then
sorted from highest to lowest to assign an industry rank from 1 to 195ish (this
changes periodically as they make adjustments to their industries).

The RT itself is essentially an indicator of the direction and velocity of the
price movement of a stock. Imagine a rubber band attached to a stick. The stick
represents the the 13 week exponential moving average. The more the price is
stretched above the 13wk EMA, the closer the RT value is to 2. The more the
price is stretched below the 13wk EMA, the closer the RT value is to 0. If the
price is very near the 13 week EMA, the RT value is 1.

2 things in particular add to the "faster" rankings changes in VV vs. DGO:
(1) For ranking purposes, only 13 weeks is used vs. 26 weeks for DGO industry
rankings.
(2) The RT is responsive to the speed and direction of the 13 week price change
in the stocks within the industry because the EMA places more weight on more
recent prices than does a simple moving average. If the stock launches a high
velocity move in one direction or another, the RT moves quickly toward 2 or 0,
because the "stretch" from the EMA itself is also taken into account.

As with all industry ranking systems, it's important to remember that they
represent the *average* action of stocks within the industry and so always have
limitations. With VV's industry ranking system:

(1) This means that if the stocks within the industry behave essentially
similar, the average RT upon which the Industry Rank is based is somewhat
meaningful. If, however, you have some stocks behaving badly and some stock
behaving well, they average out to "neutral."

(2) The RT measurement itself has limitations. For example, there is nothing in
the RT measurement itself that takes into account the *direction* (slope) of the
13 wk EMA. So, You can have an RT >1, meaning the stock is above the 13 wk EMA,
but it could easily be a *declining* EMA.

(3) The price one pays for a shorter term indicator of industry health/ranking
is that it tends to increase the volatility in the rankings over time. For
example, if you look at a sample VV industry ranking, you can see how quickly an
industry can move from low to high in the rankings and back. By itself, this is
not problematic, but it does point out the importance of matching the industry
ranking time frame to the investing strategy timeframe. In an "Ask Bill" column
a day or so ago, a local farmer asked whether the IBD's A/D ranking was a
lagging indicator. The IBD answered (paraphrasing) that they consider 13 weeks
to be short term and as such, do not believe that the A/D lags.  They also
stated that it was the "fastest" of their indicators. That makes sense only
because stock their RS Ranks are based on 1 year and their Group RS Ranks are
based on 6 months. Guess it all depends on your perspective. I'd say A/D is
definitely "faster" than the other measurements, but I wouldn't conclude that it
doesn't "lag."

Sample VV industry ranking. Note that lower rankings are "better", so the graph
is essentially upside down:
http://www.breakoutwatch.com/katherine/SampleVVRTR.JPG

Katherine

  -----Original Message-----
  From: [e-mail]
[mailto:[e-mail]]On Behalf Of Ron Brown
  Sent: Tuesday, July 15, 2003 9:07 AM
  To: [e-mail]
  Subject: RE: [CANSLIM] 52-weeks hi/low versus industry group ranking


  Hi Gene,

  This is Ron Brown from the HGS Investors board.

  I am not familiar with V V's groups, but as you well know, you can set your
you own time frame in HGSI for group rotation in addition to standard Ian Slow
and Ian Fast and Wilder, we are able to make our own settings based on % price
changes over any length of time.

  Personally, I look at % price changes for one day, since the beginning of the
week, and five day changes to see if short term strength is confirming long term
group strength.  If not, this may be an indication of early rotation in or out
of a group.

  I just rejoined this mailing list, and will not plug HGSI, but I will be
available to answer questions.  The answers may not be immediate, but I will
answer questions when I have time.

  Ron
    -----Original Message-----
    From: [e-mail]
[mailto:[e-mail]]On Behalf Of Gene Ricci
    Sent: Tuesday, July 15, 2003 9:17 AM
    To: [e-mail]
    Subject: Re: [CANSLIM] 52-weeks hi/low versus industry group ranking


    Roger,

     > 1) VectorVest - fastest
    > > 2) HGSI - not quite as fast

    Gene

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<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><SPAN class=3D093081215-15072003>Hi Ron,</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>Welcome back.</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>I thought I would add a =
description of the=20
VV industry ranks to round out the comparison of HGSI, DGO and =
VV:</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>VectorVest (VV) uses a proprietary =
indicator=20
called RT (Relative Timing) as the basis for their group rankings. Each =
stock in=20
the database is assigned an RT and all stocks in an industry, regardless =
of=20
price, are then averaged to create the RT for the industry itself. The =
value of=20
the average RT for an industry is then sorted from highest to lowest to =
assign=20
an industry rank from 1 to 195ish (this changes periodically as they =
make=20
adjustments to their industries).</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>The RT itself is essentially an =
indicator of=20
the direction and velocity of the price movement of a stock. Imagine a =
rubber=20
band attached to a stick. The stick represents the the 13 week =
exponential=20
moving average. The more the price is stretched above the 13wk EMA, the =
closer=20
the RT value is to 2. The more the price is stretched below the 13wk =
EMA, the=20
closer the RT value is to 0. If the price is very near the 13 week EMA, =
the RT=20
value is 1.</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>2 things in particular add to the =
"faster"=20
rankings changes in VV vs. DGO:</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003>(1) For ranking purposes, only 13 =
weeks is=20
used vs. 26 weeks for DGO industry rankings.</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003>(2) The RT is responsive to the =
speed and=20
direction of the 13 week price change in the stocks within the=20
industry because the EMA places more weight on more recent prices =
than does=20
a simple moving average. If the stock launches a high velocity move in =
one=20
direction or another, the RT moves quickly toward 2 or 0, because the =
"stretch"=20
from the EMA itself is also taken into account.</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>As with all industry ranking =
systems, it's=20
important to remember that they represent the *average* action of stocks =
within=20
the industry and so always have limitations. With VV's industry ranking=20
system:</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>(1) This means that if the stocks =
within the=20
industry behave essentially similar, the average RT upon which the =
Industry Rank=20
is based is somewhat meaningful. If, however, you have some stocks =
behaving=20
badly and some stock behaving well, they average out to "neutral." =
</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>(2) The RT measurement itself =
has=20
limitations. For example, there is nothing in the RT measurement itself =
that=20
takes into account the *direction* (slope) of the 13 wk EMA. So, You can =
have an=20
RT >1, meaning the stock is above the 13 wk EMA, but it could easily =
be a=20
*declining* EMA.</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>(3) The price one pays for a =
shorter term=20
indicator of industry health/ranking is that it tends to increase the =
volatility=20
in the rankings over time. For example, if you look at a sample VV =
industry=20
ranking, you can see how quickly an industry can move from low to high =
in the=20
rankings and back. By itself, this is not problematic, but it does point =
out the=20
importance of matching the industry ranking time frame to the investing =
strategy=20
timeframe. In an "Ask Bill" column a day or so ago, a local farmer asked =
whether=20
the IBD's A/D ranking was a lagging indicator. The IBD answered =
(paraphrasing)=20
that they consider 13 weeks to be short term and as such, do not believe =
that=20
the A/D lags.  They also stated that it was the "fastest" of their=20
indicators. That makes sense only because stock their RS Ranks are based =
on 1=20
year and their Group RS Ranks are based on 6 months. Guess it all =
depends on=20
your perspective. I'd say A/D is definitely "faster" than the other=20
measurements, but I wouldn't conclude that it doesn't =
"lag."</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>Sample VV industry ranking. Note =
that lower=20
rankings are "better", so the graph is essentially upside =
down:</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003><A=20
href=3D"http://www.breakoutwatch.com/katherine/SampleVVRTR.JPG">http://ww=
w.breakoutwatch.com/katherine/SampleVVRTR.JPG</A></SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<DIV><SPAN class=3D093081215-15072003>Katherine</SPAN></DIV>
<DIV><SPAN class=3D093081215-15072003></SPAN> </DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
  <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
  size=3D2>-----Original Message-----<BR><B>From:</B>=20
  [e-mail]=20
  [mailto:[e-mail]]<B>On Behalf Of </B>Ron=20
  Brown<BR><B>Sent:</B> Tuesday, July 15, 2003 9:07 AM<BR><B>To:</B>=20
  [e-mail]<BR><B>Subject:</B> RE: [CANSLIM] 52-weeks =
hi/low=20
  versus industry group ranking<BR><BR></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>Hi=20
  Gene,</SPAN></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT> </DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>This=20
  is Ron Brown from the HGS Investors board.  </SPAN></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT> </DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>I am=20
  not familiar with V V's groups, but as you well know, you can set =
your=20
  you own time frame in HGSI for group rotation <FONT size=3D2>in =
addition to=20
  standard Ian Slow and Ian Fast and Wilder, we are able to make our own =

  settings based on % price changes over any length of=20
  time.</FONT></SPAN></FONT><FONT face=3DArial color=3D#0000ff =
size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT> </DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003>Personally, I look at % price changes for =
one day,=20
  since the beginning of the week, and five day changes to see if =
short=20
  term strength is confirming long term group strength.  If not, =
this may=20
  be an indication of early rotation in or out of a =
group.</SPAN></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT> </DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D710395114-15072003>I=20
  just rejoined this mailing list, and will not plug HGSI, but I will be =

  available to answer questions.  The answers may not be immediate, =

  but I will answer questions when I have time.</SPAN></FONT></DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003></SPAN></FONT> </DIV>
  <DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
  class=3D710395114-15072003>Ron</SPAN></FONT></DIV>
  <BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
    <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
    size=3D2>-----Original Message-----<BR><B>From:</B>=20
    [e-mail]=20
    [mailto:[e-mail]]<B>On Behalf Of </B>Gene=20
    Ricci<BR><B>Sent:</B> Tuesday, July 15, 2003 9:17 AM<BR><B>To:</B>=20
    [e-mail]<BR><B>Subject:</B> Re: [CANSLIM] 52-weeks =
hi/low=20
    versus industry group ranking<BR><BR></FONT></DIV>
    <DIV><FONT face=3D"Comic Sans MS">Roger, </FONT></DIV>
    <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
    <DIV> > 1) VectorVest - fastest <BR>> > 2) HGSI - not =
quite as=20
    fast <BR></DIV>
    <DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV>
    <BLOCKQUOTE=20
    style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"><FONT=20
      face=3DArial=20
size=3D2></FONT> </BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTM=
L>

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