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NGD, AUY, RGLD, RIC, EXK all seem to be showing good action. GOLD delivered quite a karate chop last week, though it looks to me like it is masking accumulation. Can we use the 20day the same way that we use the 50day? The market will tell us this week.
Oh Abe! Are you admitting to attempting to rationalize, or create, a new "rule" for secondary buy points or add-on buys? Ha! I've watched these move right through legit buy points (e.g., for AUY last buy pt = 13.12 off a DB (Double bottom) base) but stayed away for fear of that inevitable popping noise we'll hear when the Au Bubble bursts! Curiously, why do you chose 20DMA vs. 10? or 15? I use the 10 day (in addition to 50 & 200) and have found that it may be too tight to be of practical use? Thoughts? Brad
Hi Brad. After 11 years dedicated to CAN SLIM analysis it is plain to me that we need to interperet every day the market throws at us. CAN SLIM traders like Mike Webster and Christian Kasher often use the 10 day as a secondary entry. Most often for a smaller follow on buy. At Level 4 WON shows that late follow on buys can be profitable as well. Such as the November 15 & 16, 2005 buys of AAPL. Those are way up out of the 5% window and way off the 50 day and past 8 weeks from the base. It can take several expensive years to learn how to protect yourself on these types of entries. Mostly we all owe a great debt to Dr. K, because the Pocket Pivot provides a very high probability of putting in a new high. On top of the pocket pivot, I allow a retracement gap to bolster my confidence. The CAN SLIM ultimate test is, did it work?
Masking accumulation - could you explain that please?
Just like Scott O'Neil has described stalling - an up day starting out a day higher but closing near the low on heavier volume- as a component of weakness; a down day that closes near the high on heavier volume may be a component strength. GOLD on 8/25 seems to be such a day.
Aha, I get it, thanks!
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