Duane,
I had FSLR and sold it when it couldn't hold the 10-day moving average. I
ratchet up to an aggressive selling posture when I see leadership under
attack. For me this means if a stock has been holding at the 10-day or
20-day moving average and no longer can, I dump it.
I can buy it back if conditions change.
Joe Burns teaches a valuable sell rule called: Moving Average Break-Rally
Attempt-Undercut. Essentially a stock that has been holding above an
average, say 20-day or 50-day, and then breaks below it and then attempts to
rally and that rally fails you sell as soon as the price undercuts the lows
of the time it broke below the average.
Mike Scott
Tarzana, CA
From: canslim-bounces@???
[mailto:canslim-bounces@???] On Behalf Of Duane Runnels
Sent: Thursday, May 01, 2008 1:47 PM
To: CANSLIM Stock Investment Group
Subject: Re: [CANSLIM] Rotation snap shot
7 out of 10 in the bottom 1/3 of groups.
I track earnings and buy stocks with superior earnings. Stocks with good
earnings have been hammered 3 times in the last two weeks that M has had a
strong green day.
Want an example? FSLR
Mike Scott <mike@???> wrote:
We wanted rotation, now we got it. I wonder if we will rotate into something
else tomorrow.
Based on the moving averages everything looks comfortable. However, try to
build a portfolio and it makes you want to become a day trader.
I had an office mate who was having trouble with the thermostat in his
office. One day it was 85 and the next day it was 55. Being an engineer he
said "on the average I am quite comfortable". The major indexes are quite
comfortable right now.
Mike Scott
Tarzana, CA
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