Master Card

[Normand]

After reading Pascal’s book, I said to myself, this guy is SUPER BRIGHT! What a clever way to analyze the market? I jumped in and have been a follower ever since. I have downloaded the spreadsheets most every day and tried to make stock selections. Then came the robots. I jumped in again.

Since my success up to last fall had been limited, I started to focus more attention on the CANSLIM approach with the super posts by Mike Scott. I am just scratching the surface in this area. After selecting stocks with the CANSLIM approach, I go see what the VIT database is showing. Here is an example with Biogen (BIIB):

I may be wrong, but when I look at the chart of BIIB below, I see strong accumulation after a pullback (consolidation). So I went to the VIT web site and below are the VIT charts for BIIB.

Basically, VIT charts say that this stock is under distribution by large players and accumulation by small players, and the small players are moving the market, just like the Master Card example by Mike. It is possible and only the future will tell.

On the other hand, it begs the question that I have been asking myself for a while: Have the “Market Rulers” figured out Pascal’s approach and that of a bunch of copycats?

We all know it’s a mouse and cat game. This is why I am also skeptical about CANSLIM, since these guys must be exploiting that approach as much as they can. The only hope for CANSLIM is that you cannot stop companies from making profits!

I am looking forward to your comments.

Normand