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Thread: 10-5-2013 Comments

  1. #1
    Join Date
    Dec 1969
    Location
    Tarzana, CA
    Posts
    962

    10-5-2013 Comments

    I updated my watch lists for the Models area, it may take a while for Pascal to update the site. I am doing this weekly, usually over the weekend.

    CANSLIM investing is a medium-term investing style where stocks are held for weeks to many months. Normally positions are held for 20% profit unless the stock is somehow deemed special such as TSLA which I own from the 107.23 buy point. Even though I include a short watch list in the models area I don't believe short taking is the place to focus right now. When shorts start working, perhaps then. In the QE infinity environment I don't know when this will be. That being said, I am noticing quite a few stocks breaking out of high-tight flag patterns. This pattern Bill O'Neil notes is the strongest of all patterns often leading to a double to triple in price. TSLA is an example with a breakout on 6/23/13. A high-tight flag goes up in price by 100% or more in 4-8 weeks and then consolidates tightly for 3-5 weeks and then breaks out to new high ground. These stocks are showing enormous strength. I have never seen so many high-tight flags form at the same time before. I suspect that the market is in a blow-off stage of a 4 1/2 year bull market similar to 1999 and September-October 2007. This is just an opinion based on what I am witnessing. So if volatility increases a time to short may come.

    I have noticed that even though the market indexes had a pull back that most leading stocks are extended above safe levels to buy. Quite a few leading stocks held up in a tight pattern called "3-weeks tight". This is a pattern on a weekly chart where the stock closes almost at the same price three weeks in a row (+/- 1.5%). This is evidence of institutional accumulation. It is okay to buy stocks that exhibit this trait as they break above the pattern into new high ground.
    Mike Scott
    Cloverdale, CA

  2. #2
    Mike,


    Your list has been updated.
    We also included a color change whenever the price falls below the buy zone.
    We will be testing the possibility of sending e-mails/Tweets whenever a buy price is reached.


    Pascal

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