John Madarasz - I noticed that 2 of the top ten from the "200 Best..." list are IPOs, without much price history.
(I won't make a habit of this, but the one I find particularly interesting right now is SRTI.)
Apropos of your observations, John, I was able to take positions in TLGD and ANEN courtesy of the NOK/MOT/ERICY "shortfall" selloff a couple of weeks ago; I had been watching, and saw them get oversold; irrationally so. My experience is showing me that the market tends to vacillate between wildly overbought and wildly oversold, and I'm finding the knowledge to be useful.
Did I wait for bases to form in these stocks? No. Did I buy on a "pivot?" No - but, using observation about historical support levels, and watching for a climax in the selling, I came darn close to buying at the bottom of the recent correction. The stocks are now basing at less oversold levels, around 40% higher than my entry point.
Observation, yes. CANSLIM? I don't think so. . . but, I made some money.
Charts without context - TA without a news feed - is a myopic picture indeed. The main quarrel I have with the Investors' Corner column, for example, is that there is usually no mention of larger context - earnings preannouncements, Fed moves, economic data, whathaveyou - as there also is not in "24 Lessons...". A stock can be acting just right, the buy done at the right time, etc - and then they preannounce a shortfall, and wham.
Regards,
Jon |
