Hi Mike,

I have found your last several comments extremely useful and interesting. Please keep them coming!

Your positions from your Oct 29 note (SWI, SBH, UA, ISRG, GLD, DLTR, GNC) are doing great!

I am trying to follow along the model counts. I understand the traditional CANSLIM criterion around FTD and distribution days (DD's), but had some Q's about the new concepts:

1. Do we continue to count DD's? So, we keep an Exposure Count (EC) and DD count (DDC). It seems from your Oct 24 note that this is the case .. and it relates to B10... Under B10, if the DDC is above 4, then we increase the EC after a DD falls off (25d window)? But, under traditional CANSLIM, the rallied ended after 4 DD's? It seems like the EC and DDC are maintained even when their is no rally condition in place (as defined under traditional CANSLIM)? e.g. your Oct 24 note shows Oct 10 B3 event and EC =1 despite Buy Switch OFF.

2. Does B3 event only increase EC following a FTD and only the 1st occurrence? Can the 1st FTD (starting a traditional CANSLIM rally) be used to trigger both B1 and B3? e.g. $COMPQX on Oct 18, both an FTD and B3 event? Then Oct 19 on $COMPQX does not increase EC even though no intraday excursions below 20d ema? Is the B3 event reset only following a Buy Switch move to off?

3. Are B4, B5 & B6 events similar and only can increment EC once per Buy Switch ON? similarly reset? Can B6 occur and increment EC on same day as FTD, B1?

4. Or, is it the case that the FTD and related rules, B1, B2 and B7-B10 occur and are counted toward subsequent day EC so long as Buy Switch is ON, whereas B3-B6 are examined each day and add to EC only if they are true for that day?

5. I tend to put significantly more weight on $COMPQ than NYSE, so is it appropriate to only run the analysis against $COMPQ? I would think that we do not want to count a FTD on NYSE, put Buy Switch to ON, and then run the EC and DDC based on $COMPQ? right? Oct 24 Note says under certain conditions Buy Switch can be ON, but EC = 0, so long as the uptrend is still intact - how is "intacted" measured? What takes the Buy Switch to OFF?

I have some Sell signal Q's, but I will hold those for now

Thanks for all your help!

Shawn