CANSLIM Trading Journal

GHM

2008-08-04T14:20:00.000-07:00

Sold on news of stock split, would be the second in a one year period.

Double Falling HS pattern in Dollar Index Reverses

2008-07-24T03:25:00.000-07:00

This surprising reversal, from such a powerful low risk pattern, in the USD may signal a turnaround in the Downward trend into a Flat.

Unofficial SP600 Follow Through

2008-07-22T21:20:00.000-07:00

The SP600 Index appeared to Follow Through on Tuesday 7/22, But IBD did not concur since the more popular indexes failed to make the 1.5%+ gains necessary, only the small cap indexes sp600 and Russell2000 were able to. Though it appears to meet all the IBD and my own definitions of a FT day. The VIX/VXN reached to 30/33 level in the the days prior coinciding near a bottom and making a large fall(8%) on the FT day itself, the II survey showed bears at 49%(extreme pessimism)

Bear Groups Laggards "Leading"

2008-07-22T16:39:00.000-07:00

Bear market signal in Coal and Steel

2008-07-02T16:14:00.000-07:00

Credit to BMB

A classic sign of the end of a bull market is when the leaders of the uptrend breakdown sharply all on the same day. Today we see this occur in the Coal and Steel sectors. Though the general US markets have been in a Bear since 11/7/07 the Coal and Steel sectors continued a bull trend through the general market corrections. But today's price action indicates the bull trend in Coal and Steel is likely coming to an end.

Market Action: Doji recovery attempt, after Official correction signs

2008-06-12T15:02:00.000-07:00

Yesterday the sp500 marked a 5th distribution day in the past 4 weeks, signaling a correction from classic price and volume action. Though IBD had already signaled one on 6/6 when the most recent rally attempt failed, no such distribution days had arisen. Since almost all major market declines are preceded by rapid distribution days it made the near market outlook far more negative. Today the market averages finished in Doji-like action. Opening high and progressing higher into the midday only to lose all of the gains but with in the final half hour closing near the open. Anecdotal evidence from individual stock action(FRE 2/27, DIVX 2/25, lesser AMD 11/16,) indicates such action after sharp drops from shorting areas only adds fuel to the down trend.

Transactions 6/11

2008-06-10T19:43:00.000-07:00

Entries:

Short SPWR/CY: Both are breaking down from from miniHS patterns falling rapidly from the their 200MA. The lack of resistance, noted by high LR ratings and the velocity of the drop the last 2 days high at very high momentum. Note: this is very similar to some of the stocks featured in O'niel's Shorting book: year 2001(154, 165).

Short EDU

Exits:

AVAN : broke rules entering when stock was not at a buy point, very silly mistake in a speculative stock.

Reductions:

POT, IPI, CHK, AREX: Were purchased when the market rally was still confirmed(06/6-06/5), and at this point they are either small profits of small losses so they are technically still good positions. Need to free up capital for shorts which are much more likely to perform well in the near term.

From a greater market perspective similar weakness in other Chinese issues:CHL, BIDU(losing 50MA with great LR), CHNR, and the greater FXI ETF hints at possible 2nd leg downward in the Chinese markets. It appears very similar to the Nasdaq Sept.-Oct. , 2000