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Strategies & Market Trends : Pitbull Investing Strategies -- Ignore unavailable to you. Want to Upgrade?

To: John Langston who wrote (420)	10/25/1997 1:58:00 PM
From: Atin	Read Replies (1) \| Respond to of 789

I just add PE to the mix of RS, Acc/Dis. A high-flyer with a huge PE (preferably above 60 though lately 100 seems to be a good number), starting to show signs of weakening. That is when I start to think that earnings estimates will get revised down and the stock becomes a potential short. And when the industry group seems to be faltering (like in the semiconductors right now), and the market fluttering (like now), I'm in. I can't actually afford to get in every stock that comes out of the narrow filter. But it is a good starting point. -Atin

To: John Langston who wrote (420)	10/25/1997 4:17:00 PM
From: Doo	Read Replies (1) \| Respond to of 789

John: A few comments to keep the discussion going. First, the only CANSLIM "M" indicator which works, that I know of, is at: accessone.com I've posted this several times. Check it out, the "market comments" and "NasBar" sections are really something to consider. It is O'Neill's formula applied through Trade Station. It works, every time, so far this year. I agree that most CANSLIMers can't master the "M", but I disagree that one shouldn't try. It is the single most important concept, and I think it should be applied to the PB, long and short. As you know, I can't just mindlessly play the PB system. I watch too closely, and I just don't like what it offers me when the market is super hot, or super cold. And needless to say, we haven't seen too much in the way of "just right" as long as I've been playing the game. Of course, timing it this way makes room for error. For example, the 10/8 signal was not evident to me, and according to O'Neill and my buddies who run the "Farmer" site, that type of signal usually doesn't create an avalanche like we are seeing. If I'd been short all along, I'd have caught the type of returns your posting. Instead, I was gambling trying to get to cash and missed what may end up being the best entries if this correction is short lived. Second, don't get overexcited about the returns your posting. They really started at the time the market first turned, or was just getting ready to turn (10/8). I mean, you should be excited, just don't think the system produces this type of result on a regular basis. In fact, I haven't seen it perform well at all since the last significant signial given at the address posted above (late Jan.97). But when it works, oh BOY!! Third, I'll be looking at charts and industry groups. I think there are some suggestions in the guide (just as in the long system) that Ford uses charts on the shorts (particulary for stop placement). I think industry groups like oil, which continue to hold up well, should be avoided. You may miss the point when they first start to break down, but you'll avoid getting stopped out on a routine basis. Of course, with the group so strong, it may be that you won't find any oils that give a signal. Fourth, the watch list is first comprised of those which have given no signal on either indicator, right? Did you start with stocks that had one indicator giving a signal? Fifth, this is a tangent from my third comment above. If you keep close track of the watch list as the market corrects, you should see the new leaders emerge from this group as the market turns upward again. Add in 80 plus EPS to those candidates which never gave a signal and formed nice bases in the correction and look for the first to break out on the follow through days. The last time we had a clear bottom and "follow through" day (around 4/25) stocks like ORBKF and MIND broke out and lead this market. Now they are on the watch list for shorts after having tripled in 6 months!!! Jeff

To: John Langston who wrote (420)	10/25/1997 10:00:00 PM
From: Doo	Read Replies (2) \| Respond to of 789

John: Well, I revisited the short booklet, and this time, I'm a heck of a lot more interested in the buying puts than tying up big chunks of my account in margin on shorts. Never dealt with options, however. Let me have a little sleep, a shot o' Joe in the a.m. and I'll post my analysis of an option play. Jeff

To: John Langston who wrote (420)	10/28/1997 5:00:00 AM
From: John Langston	Read Replies (1) \| Respond to of 789

POWER PITBULL LONG CANDIDATES (week of 10/27/97) None, obviously. STANDARD PITBULL LONG CANDIDATES ALK ATI RXL TR GNCI HUG SLB CDO SGP. Some of these have nice bases and worthy of attention to see which ones have staying power in the next couple of days. John