Hi Mike,
After all these years I may not be asking a smart question: What exactly is
meant when one says "there is no leadership" or "not enough leadership" in
the market? I mean at given time there may be 5 leading groups with each
group having 5 leading stocks listed in StockCheckup, so there are at least
25 leaders. So when you say leadership will come from small caps, what are
you looking for? Are you looking for stocks making new highs with high
eps/rs rating? Then I hear if these stocks are from Commodities group or
Transportation group they are not counted as "leadership"? So, in order for
a stock to qualify as a "leadership" stock, would they also have to belong
in specific groups in addition to having high eps/rs rating?
--Anjan--
On Wed, Mar 26, 2008 at 1:49 PM, Mike Scott <mike@???> wrote:
> Deepak,
>
>
>
> We had a day-8 follow through on the Dow Jones and Russell 2000 indexes on
> 3/20. That day was an options expiration day which normally drives volume
> high. If the Dow with just 30 stocks was the only index that showed the
> follow through I would be quite circumspect about the prospects of this
> rally. The Russell 2000 though is a much broader index. The small cap index
> is where you would expect leadership to form in a new bull market. So it is
> possible we are out of the gate, I don't know. What every rally needs to
> succeed is leadership. I would find the rally suspect if it only includes
> the old leadership like Oil stocks, POT, RIMM, APPL, etc. Right now it kind
> of looks that way so caution is warranted. Watch the small cap indices if
> they assert continued leadership we may be in for a ride. If the
> transportation index remains in leadership then, well yuck. Track breakouts
> and monitor them for success.
>
>
>
> Some recent breakouts include: MANT, MT, X, NKE, URBN, LKQX, MA, MCRS,
> KEX, HIS, LNN, CSX and PRGO.
>
>
>
> I suspect that GS and LEH have put bottoms in; I read this by the way in
> Gil Morale's Web Letter. Financials is where one would expect growth in a
> low interest rate environment. HCBK is an example of a financial company
> that is not exposed to the sub prime mess. It has already made a move up
> from a consolidation but may offer a future entry. You may not like the
> fundamentals but in the current interest rate environment you might suspect
> upside surprises.
>
>
>
> V could set up in the future, much too early now by a couple of weeks.
> Look at VMW week of 9/14/07. If V sets up with a three-week short little
> flag like VMW did and then breaks above it might be considered. Buying IPOs
> is difficult and they don't usually give you the standard entry
> opportunities.
>
>
>
> GOOG represents a classic IPO entry on the week of 9/17/2004. It was
> buyable on 9/15/2004; look at it on a daily chart and you will see a small
> "U-Turn" base of a little more than three weeks duration. The buy point of
> GOOG was 113.58. If you go back to Bill O'Neil's book and read up on the
> features of a High Tight Flag base you have what you need to analyze an IPO
> base. The IPO base should resemble the flag and is missing the flag pole.
>
>
>
>
>
>
>
> Mike Scott
>
>
>
> Tarzana, CA
>
>
>
>
>
> -----Original Message-----
> From: Deepak Kapur [mailto:kapur@???]
> Sent: Wednesday, March 26, 2008 1:00 PM
> To: mike@???
> Subject: Re: [CANSLIM] Gil Morales and Joe Burns web letter
>
>
>
> Hi Mike,
>
>
>
> Good to see an email from you. What is your prognosis of the market?
>
>
>
> Thanks and regards,
>
>
>
> Deepak
>
>
>
> Mike Scott wrote:
>
> > Gil Morales and Joe Burns have a new Web Letter that just went live
> today.
>
> > www.gilmoreport.com cost is $499.95 per year or 49.95 per month.
>
> >
>
> >
>
> > Mike Scott
>
> >
>
> > Tarzana, CA
>
> >
>
> >
>
> >
>
> >
>
> > _______________________________________________
>
> > Canslim mailing list
>
> > Canslim@???
>
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>
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>
> > http://WallStreet-LLC.com/canslim/CANSLIMFAQ.zip
>
> >
>
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