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Registered User
Joined: 1/1/2005
Posts: 35
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Hi all...
I primarily use CAN SLIM...but also a lot of Weinstein.
I'm watching two stocks that look good and seem to be poised for breakouts to new highs and beyond. My no. 1 choice is SHLD. I also like AZO. SHLD has put in a nice 'continuation' base per Weinstein, and looks poised to continue a stage 2 advance(per Weinstein methodology). I'm primarily looking at long weekly charts here. AZO looks to be ready to take out a long horizontal resistance line that covers several years. A break of that resistance puts the stock at all time highs(weekly chart).
Other possible longs...
UTSI(near breakout of stage 1 base per Weinstein). I have the resistance breakout point at 9.20
GPS seems to be moving up to confirm a big double bottom(weekly chart) and should break above a long descending trendline(resistance) soon.
Possible shorts...
On weekly charts I see several stocks that are obviously looking weak and topping out. Several of these are energy/oil stocks.
COP
NBR
CSC
APC
SUN
The following are already breaking down...so I would short them on their next rally highs to a long term MA...such as the 30 week simple moving average(weekly chart)....
ACI
UNT
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Registered User
Joined: 10/7/2004
Posts: 2,126
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I know both system CAMSLIM, and I also know about Weinstein ( and his book). I think you will have a very hard time capitalizing with any of those 2 system at the current time. Markets have changed. Keep in mind that Weinstein wrote about his system during the 70's. CAMSLIM ... or well, I do not know a single trader/Investor who has cashed on CAMSLIM. By the way, neither one of those system are based on Momemtum.
If you really want to learn what momentum trading is, and how it is done, I advise that your read "Trading on Momentum" by Ken Woff. That book should probably clear your doubts.
Good luck
Bigblock
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Registered User
Joined: 1/1/2005
Posts: 35
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I'm not a beginner...and I have used these systems to make money. I'm not a real short term trader...and certainly not a day trader.
You and I have different definitions of momentum.
CANSLIM is based on earnings and price momentum...but surely in different technical time frames than your ideas on momentum.
Weinstein is purely technical, and doesn't consider fundamentals. This system has proved very profitable for me..especially from the short side by shorting stage 3 tops entering stage 4 declines.
The current market is difficult.....agreed! But I'm fairly disciplined and know when to sit tight in cash.
My philosophy is that it is more important to outperform a falling market than to outperform a rising market. I also like the quote by Pascal..."I have concluded that all of man's misfortune can be derived from not being able to sit quietly alone in a room". This quote reminds me not to overtrade and to sit in cash...to be disciplined.
By the way...I work mostly with weekly charts versus daily charts...per Weinstein and O'Neil.
as of now I'm not buying any CAN SLIM breakouts. I'm looking at a few base breakouts per Weinstein, and certainly some shorts per Weinstein...like the oil related stocks.
As for technical analysis and indicators...I've used and studied all of them. I've read a wall of books from Murphy to Elder to Bulkowski to Schwager to Edwards/Magee to Pring etc. etc.
So I have found after practice and study that Weinstein and O'Neil best suit my own personality. I do admire chart pattern analysis as taught by Edwards/Magee and Bulkowski...and really admire Dan Zanger who seems to have combined CAN SLIM, momentum, and chart patterns on daily charts. I'd call him a modified CAN SLIM trader...on steroids(lots of margin).
Getting off topic.
I just thought I'd post a few ideas that some on the board might appreciate.
Keep growing, Kevin Pickell
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Registered User
Joined: 1/1/2005
Posts: 35
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P.S...thanks for the book rec.
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 Gold Customer
Joined: 11/13/2004
Posts: 102
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Shatterd - thanks for sharing your thoughts. I appreciate it. I consider this website to help each other make money and it's for each of us to decide if a particular method fits our risk tolerance, time constraints, etc..
soc
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