Hello Mike,
Please permit me to ask another question. I noticed ODFL did not make the High Growth list this week, yet is was listed last week. Inspecting the chart, the stock held up well last week. Wondering if anything changed in the fundamentals or technicals that caused ODFL to be omitted this weeks Buy list? Or was this purely a market state decision to keep the # of stocks on the Buy list limited to the very best?
Harry
Harry,Originally Posted by Harry
ODFL is okay and may work. When I inspected ODFL over the weekend I noted that its earnings were okay but just okay. In this iffy market I asked myself the question if I would buy it if it broke out in this market and I said no and dropped it off the main list. I kept it on the volume trigger list. I will more likely buy a volume trigger alert if I can get it right at the moving average than buy a breakout even if the selection has a few flaws. This is because the risk is lower when bought properly.
In the mean time the market may or not be bouncing. When ever we pulled back in the recent past we usually heard that there is no volume. The market has not had a 10% correction in over 33 months (tying a record), many of the bounces began with light volume. One of these days a light volume bounce will roll over into a real correction and surprise us all.
VIPS is showing a volume trigger alert. I will watch and not play. I want to see some evidence that stocks can have an upward thrust and then follow up with an advance. The action of leading stocks will lead the way up or down.
Mike Scott
Cloverdale, CA
Mike,
Thanks for the detailed reply - your insight really helps me understand CANSLIM and develope a sounder market mentality.
Last week I noticed TSLA was under accumulation while the market pulled back. I regret to report I froze and did not take a junior position. TSLA has been interesting to monitor lately, it seems to me it has become a place to park money during what is expected to be a minor pull back (similar to APPL.) I now wonder if the market bounces or we get a FTD soon, will money move out of TSLA and be redistributed into other high growth stocks? Time will tell ...
Cannot thank you enough,
Harry
Harry,
Relating to TSLA the chart below shows the proper entry point for a Volume Trigger Alert (blue arrows).
TSLA volume dried up prior to the move up off of the 10-day moving average (it was close to the 50-day also). Volume dry up prior to a surge is a good thing. Even though the volume was below average on the day of the alert it was larger than any red volume bar during the prior 10 trading days. Also marked on the chart is the classical cup with handle pivot point (dashed line). One way to handle these set ups is to take a half position at the volume trigger alert and complete the position at the breakout of the classical buy point.
It is common in cup with handle situations that a Volume Trigger Alert will allow you an early entry in the handle of the pattern. There were other entry situations earlier in the base.
Mike Scott
Cloverdale, CA
Agreed! With the Volume Alert Trigger tool, I should do a better job getting off my laurels and making an initial buy. Won't sweat it though as there are always other fish to catch.
Thank you (as always) Mike.
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