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Hi Jim,
I wanted to get back to you. I am not a CANSLIM
expert but if it doesn't have the earnings growth
it isn't CANSLIM. Mu by all means doesn't have
that. As far as the chart, I would say that the
cup you are talking about actually ended in the
end of August. The last part of August had a
downturn in price on heavy volume. Now if it had
gone down on light volume then it might of been a
different technical interpretation.
Harley
Jim Greening wrote:
> Harley, Best of luck, hope you're right.
> As I understand the CANSLIM cup, all that's
> required for volume is: 1) that it's lower on
> the left hand side of the cup (march to June )
> 2) higher on the right hand side of the cup
> (July to now), and 3) most importantly, very
> high to confirm the breakout.The breakout hasn't
> occurred yet. For your sake I hope it doesn't
> because it would require a push through the 39
> level on high volume. Jim
>
> -----Original Message-----
> From: Harley Meyer <meyer@xxxxxxxxxxx>
>
> To: metastock@xxxxxxxxxxxxx
> <metastock@xxxxxxxxxxxxx>
> Date: Sunday, September 27, 1998 11:42
> PM
> Subject: Re: Yahoo - Intel May Take
> Stake In Micron Technology Inc.,
> Reports CMP's Electronic Buyers'
> NewsAhh, my good friend Jim,
>
> At the moment I am trying not to feel
> like Homer Simpson. I am worried about
> this MU position and feel that I
> stepped into the short a little early
> based on my trading system. After
> looking at the chart of MU I don't
> think it is in a CANSLIM type of
> breakout. The volume formation is not
> there and my guess is that earnings
> are not there.
>
> As far as the Intel deal I can't see
> it. After doing a little more reading
> by following the links that were in
> the article. I read that as soon as
> the 2nd tier chip makers can get
> ramped up they will create new supply
> in the DRAM market. Also MU and
> Samsung are going to increase
> production. i.e., increased supply.
> The outlook is that DRAM will be a
> commodity. It doesn't make sense that
> Intel would spend money to guarantee
> lower chip prices. When the trend for
> memory is to commodity status.
>
> Lastly MU has been a buyer of
> companies or parts there of.
>
> Like I suggested earlier, I think this
> rumor is a way to push the price up
> because somebody's portfolio is
> suffering with too much MU in it. Same
> thing happened with AMD and IBM.
>
> Now what matters is what people think
> and for now they think that the price
> should go up and my poor butt has
> decided to face the other way. I just
> hope the crowd won't trample me to
> debt (pun intended). I will say that
> MU earning are supposed to be out on
> Monday some time. So I am going to
> wait until earnings come out before I
> make any decisions.
>
> Harley
>
> Jim Greening wrote:
>
> > Harley, That's a rumor that
> > makes a lot of sense to me and
> > you're asking for trouble by
> > fighting the tape. MU is in a Short
> > Term Up Trend Channel (STUTC) and is
> > trying to complete a CANSLIM type
> > cup and handle formation. it could
> > really jump if the rumor becomes
> > true. Jim
>
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