David,
The leadership got hit hard on Monday. Following the leaders is a big part
of determining the direction of the market. We had a large pull back in
June/July that was not called a correction because largely the leadership
held up.
Mike Scott
Tarzana, CA
_____
From: canslim-bounces@???
[mailto:canslim-bounces@???] On Behalf Of Dave Rubin
Sent: Friday, August 21, 2009 9:27 AM
To: 'CANSLIM Stock Investment Group'
Subject: [CANSLIM] IBD wrong?
Even in today's Big Picture they indicate the market "remains in a
correction."
However it seems to me they jumped the gun and went right into "Market in
correction" on Monday without even a stop in "Market uptrend under
pressure."
Frankly I don't really understand the reason for this, but it seems to me
that this call was flat out wrong and Monday's correction was just a one-day
event.
IBD also seems to be relaxing their previous rules in declaring that "an
attempted rally begins with the first up day after the market goes into
correction." It's been awhile since I read the book, but I thought the
attempted rally only starts with an up day of 1% or more on higher volume
than the previous session.
By this definition, unless the market sells off at the end of the day, this
is a follow through day and Monday's Big Picture should indicate "Market in
confirmed uptrend" once again. IMO they screwed up on this one.
