CANSLIM - Highly profitable trading strategy

The Dow weekly chart is showing a downtrend channel over the last ten bars or so.. and the lower edge of said channel is around 9700... if price goes that low it will be below some support at 10150 or so, then the next support is around 8300... The larger channel based on the peak in 2007 and the lower high of this year points to the idea that we could have Dow 5000...
 
You are right eight. But I am not good at future price targeting. I use peak areas in indexes (supports/resistances) as a some navigation but for me personally is crucial to see accumulation and distribution days around these areas. Are you short selling this market Eight?
 
I notice Optimer Pharmaceuticals trading at a historic high price yesterday. Do you always strictly apply CANSLIM rules?

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3309952 \img>
 

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Yes I do. I found in past to be very difficult for me to trade in stocks without clear uptrend. Your pick was good and well timed no doubt about it but I do not see a clear uptrend there. This is how looks like an ideal weekly chart for possible entries. Price is above 100 day moving average and 4 - 10 weeks tight consolidation area.
Anyway like I said above. Your pick should be ok and I hope make you money. I hold cash and no interest in buying new stocks. I bought AAPL at 400 closed at B/E and I bought PCLN at 550 closed at 541. I will be buying pcln once again because I still like chartpattern structure until in break lower support around 500-480.

DIARY OF A STOCK TRADER
www.obchodovanie.com
 

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canslimer said:
You are right eight. But I am not good at future price targeting. I use peak areas in indexes (supports/resistances) as a some navigation but for me personally is crucial to see accumulation and distribution days around these areas. Are you short selling this market Eight?
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DOW did have a down year in 2011, on my chart, haven't checked out QQQ or SPY in 2011 yet.
SELL in MAY pattern. IBD/canslim always likes a % of volume + real careful of volume patterns.
Plenty of uptrends + downtrends are made on average volume....................................................................................
 
murray t turtle said:
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DOW did have a down year in 2011, on my chart, haven't checked out QQQ or SPY in 2011 yet.
SELL in MAY pattern. IBD/canslim always likes a % of volume + real careful of volume patterns.
Plenty of uptrends + downtrends are made on average volume....................................................................................
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Murray wins the ET longest-ever delayed post-bump of the year award, issued yearly. But this one is a doozy. A ten year bump? I think that is a record. I forget.
 
canslimer said:
The current market environment looks to me the most bearish in the last 3 years. All the technical and fundamental analysis showing us that right side of the market is bear side. We hear from everywhere about debt ceiling, unstable economic growth and possible collapse of some countries and their whole economy.

I do not need to see this economic data to see big picture. When we look back to 2008 we will see same pattern like is happening right now. The bearish low volume flag is so obvious that you can not find a better example.

The other supporting factor of my bearish opinion is that I do no see any accumulation days during the rally. All the moves went up with very light volume below average of 50 days. Otherwise it was during the selloffs.

Next thing is that we are facing the third year of a bull market. It is very typical to see this kind of behaviour in these later stages of bull runs...

DIARY OF STOCK TRADER
http://obchodovanie.com/
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A very good bearish call on 11 Sep 2011, so what happened to OP? :)

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