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canslim-digest        Monday, November 29 1999        Volume 02 : Number 756



In this issue:

       Re: [CANSLIM] DGO List
       Re: [CANSLIM] DGO List
       [CANSLIM] Japanese economy
       Re: [CANSLIM] the dotcoms
       [CANSLIM] Lazlo Birinyi on the A/D line
       Re: [CANSLIM] Lazlo Birinyi on the A/D line
       Re: [CANSLIM] Lazlo Birinyi on the A/D line
       [CANSLIM] PMCS
       Re: [CANSLIM] PMCS

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

Date: Sun, 28 Nov 1999 13:12:55 EST
From: [e-mail]
Subject: Re: [CANSLIM] DGO List

  Hi Tom,
 I greatly appreciate the time you put in on the list.I thinking about
chkp,the question I have is,what does the B/O stand for in your DGO list.
Thank You again
Giuseppe

- -

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

Date: Sun, 28 Nov 1999 19:07:28 -0500
From: "Tom Worley" <[e-mail]>
Subject: Re: [CANSLIM] DGO List

Hi Giuseppe,

B/O was my shorthand to denote breakout as I saw it on the
chart.  Made a strong move Friday from the two week
consolidation which not only took it well over the
consolidation, but to a new high.  Volume on Friday didn't
quite match the ADV, but since it was a half day session, I
still count that as 2X ADV.

Tom Worley
[e-mail]
chat with me at ICQ # 5568838
get ICQ software at http://www.icq.com/icqhomepage.html


- -----Original Message-----
From: [e-mail] <[e-mail]>
To: [e-mail] <[e-mail]>
Date: Sunday, November 28, 1999 1:14 PM
Subject: Re: [CANSLIM] DGO List


  Hi Tom,
I greatly appreciate the time you put in on the list.I
thinking about
chkp,the question I have is,what does the B/O stand for in
your DGO list.
Thank You again
Giuseppe

- -



- -

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

Date: Mon, 29 Nov 1999 00:30:59 -0500
From: "Tom Worley" <[e-mail]>
Subject: [CANSLIM] Japanese economy

Industrial production dropped 2.3 percent, compared to an
expected drop of 0.9%.  This is an economy still waiting for
a major crash, and highly resistant to making any changes or
corrective action. I would not expect it to drag the entire
Asian community down as far, or as fast, as it it did in
1998, but it will still be a major burden. And if the region
again crashes, anticipate a measurable reduction in demand
for oil, thereby pressuring prices and increasing inventory.

Tom Worley
[e-mail]
chat with me at ICQ # 5568838
get ICQ software at http://www.icq.com/icqhomepage.html




- -

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

Date: Mon, 29 Nov 1999 13:38:43 +0000 (GMT)
From: [e-mail] (Dan Musicant)
Subject: Re: [CANSLIM] the dotcoms

On Sat, 27 Nov 1999 10:59:45 -0800, you wrote:

:This is so obvious that I am very suspicious that it will work,=20
:anything obvious is usually discounted, but anyone have any=20
:opinions on an internet stock or two to take advantage of the=20
:christmas shopping boom?  I had the national news on last night,=20
:there were several stories on internet shopping, one mentioned the=20
:numbe of dollars spent on advertising and that nearly all available=20
:spots are taken between now and christmas by various internet=20
:sites, also had the anecdotal type story on how parents with kids=20
:find it easier to shop online than in the mall. =20
:
:I am thinking AMZN might get a pop here, maybe this is for traders=20
:more than investors, also more momentum play than canslim, but I=20
:think the N is there in a big way, still, even though they have been=20
:around a while, also the L part of the deal, and M is strong, so at=20
:least some stuff is in place.  A little weak on C and A.
:

As I see it, L for AMZN stands for Losing Money. That's how the market
has reacted each time AMZN announces the figures for how they are doing
in dollars and cents. i.e., the stock plunges. If memory serves, that is
definitely how it went the last two times. However, I reasoned 2 months
ago or so that AMZN was likely to do VERY WELL, despite all that, simply
because this figures to be a raging season for them, and somehow I just
had this hunch that I could make a lot of money buying a bunch of AMZN
stock. I did so, but bailed the first time my scant profits were
threatened. Let's see, that was at about 63. It's up almost 50% from
there. Will it perform now? Could be.

Dan


- -

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

Date: Mon, 29 Nov 1999 11:52:29 -0600
From: "David Squires" <[e-mail]>
Subject: [CANSLIM] Lazlo Birinyi on the A/D line

Hi all,

We've had some talk about the A/D line lately, so I thought this was timely.
I got this from Clearstation....it is an excerpt from an interview with
Lazlo Birinyi. For those who don't know Lazlo Birinyi he is a very savvy
market strategist who uses primarily tape reading to trade the market.
Unlike most other strategist this guy actually manages money. His comments
are not a revelation but as I said they are timely vis a vis this group.

****************************************************************************
*************************************

Since many of us are concerned about the A/D line some expert evidence may
help. "Barrons Q: Obviously, a lot of people have problems with the
narrowness of the advance, with the fact that the vast bulk of stocks still
trail the S&P 500. Should we use any rally over 10,000 to get defensive?
Birinyi A: No. The narrowness of the market is not unusual. What is unusual
is how aware we are of it. In 1998, 50% of the gain in the S&P was in 13
stocks. And 20 stocks were 61% of the gain. Last year we took an in-depth
look at data starting from 1965, the first year the S&P data are available.
We eventually entitled our research "The Case against Indexing," for obvious
reasons. Back in 1965, to our great enlightenment, the two largest stocks in
the S&P in 1965 -- AT&T and General Motors -- equaled the bottom 330 stocks.
The S&P 500 is a market-weighted index. If Microsoft and General Electric
and IBM go up, an awful lot of stocks can go down and the market can still
be ahead. In fact, the market capitalization of the Russell 2000 is not
equal to the market's capitalization of those three stocks. The reality is
that this is the characteristic of the market today. All of a sudden, we
have more knowledge about the market, more awareness about how it works,
more sources of information. Lack of breadth is not of great concern to me.
It's just the latest thing for those who have missed the market to be
concerned about. The stock market isn't democratic. It doesn't matter how
many stocks are up. It matters which ones. All it's describing when it's
narrow is that you have to be very careful about what stocks to buy. If the
market is broad, it tells you that perhaps asset allocation is more
important."



- -

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

Date: Mon, 29 Nov 1999 09:18:55 -0800
From: [e-mail]
Subject: Re: [CANSLIM] Lazlo Birinyi on the A/D line

David,

That quote is very telling.  I was speaking to one of
the more successful money managers in Vancouver, who
concurred with that view - buying the index carries
great risk.

It drives up the few stocks whose market cap represent
the greatest part of that index.  More insidious, as
underperforming pension funds and others compare their
performance with an index, many switch into the index
driving those few stocks up higher and higher......

- -

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

Date: 29 Nov 1999 09:39:40 -0800
From: "Tim Fisher" <[e-mail]>
Subject: Re: [CANSLIM] Lazlo Birinyi on the A/D line

I don't see that philosophy in what Birinyi said. He seemed to say get into
the market now because it's a self-fueling engine. Insidious? As Lazlo
implies, only if you're on the outside looking in. Personally I'm in two
index funds and 4 other quasi-index funds. I think anyone without some
substantial proportion of their capital in index funds or tracking stocks
carries much higher risk than someone invested in the indices.

I track the A/D numbers but only their trend is important to me, not the
absolute value. I even disagree with Woodward (I think; I haven't read his
material all that closely) on that one. E.g., if you wait until the %E dips
below 6%, which is what I think he advocates, you would miss huge moves in
the market.

On 09:18 AM 11/29/99 , [e-mail] Said:
>David,
>
>That quote is very telling.  I was speaking to one of
>the more successful money managers in Vancouver, who
>concurred with that view - buying the index carries
>great risk.
>
>It drives up the few stocks whose market cap represent
>the greatest part of that index.  More insidious, as
>underperforming pension funds and others compare their
>performance with an index, many switch into the index
>driving those few stocks up higher and higher......
>
>-

Tim Fisher
Ore-Rock-On and Pacific Fishery Biologists WWW Sites

[e-mail]
WWW: http://OreRockOn.com
See naked fish and rocks!


- -

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

Date: Mon, 29 Nov 1999 18:53:25 +0100
From: Johan Van Houtven <[e-mail]>
Subject: [CANSLIM] PMCS

Keep an eye on PMCS.

A few days ago it tried to go, but failed (low ADV). It went 1/16 over 112
and then turned back.

In the days after that they probably managed to shake out the weak holders.

Today is another shake with a bottom of 100.25. Currently near 109 and rising.
Volume NOT were we want it yet, though. So be alert and watch for the
necessary volume.



- -- Johan



- -

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

Date: Mon, 29 Nov 1999 19:13:51 +0100
From: Johan Van Houtven <[e-mail]>
Subject: Re: [CANSLIM] PMCS

In at 111 7/16. Volume flowing in nicely. BUT we are still 20% from even
normal ADV. So the conservative non-daytrading experienced investor would
not normally be buy right now.


At 06:53 PM 11/29/99 +0100, you wrote:
>Keep an eye on PMCS.
>
>A few days ago it tried to go, but failed (low ADV). It went 1/16 over 112
>and then turned back.
>
>In the days after that they probably managed to shake out the weak holders.
>
>Today is another shake with a bottom of 100.25. Currently near 109 and
rising.
>Volume NOT were we want it yet, though. So be alert and watch for the
>necessary volume.
>
>
>
>-- Johan
>
>
>
>-
>
>

- -- Johan



- -

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

End of canslim-digest V2 #756
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