Canslim

I thought this was some type of weight loss method, so I'm signing off this thread.

On a non-serious note, I'm sure most Specialists consult their charts and wave patterns before deciding what to do with an order.
 
Quote from dbphoenix:

Unfortunately, CANSLIM has created a situation over the last twenty years in which prices are driven up in anticipation of earnings. By the time "EPS" is acceptable, the "RS" has priced the stock far beyond where it would have been when CANSLIM was first developed.

Find a year-old copy of IBD and look up those stocks with high EPS that have not begun their ascents. Then note their RS ranks. Applying what you know of charts and chart patterns, find those points at which one would most advantageously enter. You may be surprised.
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Exactly. Also some of the favorite patterns (Cup with handle for example, buying at a new 52 week high) etc have gotten so much attention that I find it not to always the best time to buy. Looking for other T/A works better.

Brandon
 
Quote from billb2112:

This is another reason why I'd like to hear from some canslimmers and talk about their entries and exits. canslim sounds great on paper, but perhaps I'm just too dumb to make it work in the real world.
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O'Neil spends almost 30 pages going over this. I will put up some charts here though and show some of my entries and exits. As a general rule I try to keep my stops under 8%, which if you are good at reading charts you should be able to do.

Brandon
 
THER

7 week flat (or W-shaped) base (only 12% deep)

Friday - Nice move up on highest volume since 2 December, complete with close 1 cent below high of day.

Buy point at 18.85 (middle of W) or 19.05 for 52-week high.
 
Checkers Drive-in (CHKR)

Has an EPS rating of 86 and an EPS Growth rate of 36%. Its kind of eratic and the last quarter was actually down over the prior quarter of the same last year..but I liked the chart pattern. It had a nice pullback, the first since the stock starting running in May when they got a new CEO. I was long from $9.90. I got out on the 24th at $9.80 when the stock gapped down on the Mad Cow Disease stuff going on now.
 

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Aluminium Corp of China (ACH) is the sole producer of Alumina Oxide and the larget producer of Primary Aluminium in China. Its EPS rating is 97 and its growth has been 176% the last two quarters. Sales have been accelerating for the last four quarters.

I entered the stock long on Nov 28th paying around $51.50 per share. The stock had a very nice weekly bullflag into the 10 period moving average. I got out on the close of 12/15 at $68.50. The reason I got out was that on that day the stock had its largest down day day of the entire move and it was on the largest volume. It was the second time that had happened (the first time being 12/10 and so I thought this was not a good sign and I got out. Id do it the same way if I had it to do over again.

Brandon
 

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Evergreen Resourses produces natural gas from old coal fields. Its EPS rating is 99, and its growth has been +121%, +650%, +411% and +172% for the last 4 quarters. Sales have risen for the past 5 quarters. Its EPS Growth rate is 54%.

The stock formed a very nice base near highs for several months. The high of this base was $28.95 so I was looking to be long if it trades above $29. One 12/2 it did that and I got long. It sorta sat around for a few days and I almost got out. After it broke it based again for a few days under $31, when it broke that I added a small amount more. Over the last few days its been forming a bullflag on the daily chart and Im looking to add some again, my trailing stop on the entire position is now moved to around $32, under the low of the flag. Each Time I add it is 1/3 of the prior position, so the first entry was 800 shares, the next was 260 and the next one should there be a setup will be 90 shares.

Brandon
 
Mesa Air is a regional airline. It has a decent EPS of 81 and has had good earnings growth the last 2 quarters. Its sales have been growing well for the past 5 qtrs. I liked the weekly chart. I bought it on 11/28 when it broke above $12 per share. I set my stop at $11 and was stopped out on 12/10 for a loss of $1.05


Brandon
 

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Thanks for taking the time to reply and show the charts. I can see the cup and handle for CHKR, and I really don't have a problem identifying it especially after the fact, but what made you get in at 9.90? I see the handle drifting downward and you bought at that point. I thought it was supposed to be two or three days to form the handle, then 2 days of high volume breakout before you buy.

I haven't O'Neills book in quite some time. I'll revisit the 30 pages he takes to explain this and see if I can get a better understanding.

As far as the other charts you showed, I didn't really a hard cup and handle formation. That's the subjective part that gets me I suppose.
 
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