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When investors lack the discipline to sell when a stock falls 7-8% from their buy price per the investment system's rule on limiting losses, that investor leaves themselves open to more drastic losses. Investors should stand ready to take action when a critical support level is violated, such as any loss leading a stock to break down below an upward trendline, 50-day moving average (DMA) line, previous chart low, or the stock's 200 DMA line.  It is important to recognize these signs of technical deterioration. The most successful investors are always willing to get out when sell signals start to mount.

Symantec Corp (SYMC $-0.77 or -5.07% to $14.02) is not currently on the CANSLIM.net Featured Stocks list.  The last time it appeared in this Featured Stock Update section with an annotated graph was on 9/11/08, under the headline "Positive Reversal Repairs 50 DMA Violation Promptly" - when it had repaired its latest 50 DMA violation with a positive reversal for a gain on above average volume. That action was noted as "no guarantee against further losses, but it was an encouraging sign of support from the institutional crowd stepping up after its latest pullback on heavier than average volume raised concerns."  Its color code had been changed to green based on recent weakness, whereas stocks closer to a proper buy point are color coded yellow in CANSLIM.net reports.

Based on weak action, SYMC was later dropped from the CANSLIM.net Featured Stocks list on 10/02/08 and noted as follows "Loss today with slightly above average volume is triggering technical sell signals while violating its 200 DMA line and prior chart lows."  From its 10/02/08 close at $17.83 it has already traded as much as -27.82% lower, helping to exemplify exactly why losses should always be limited to 7-8%.  Members can use the "View all notes" link from reports on stocks like SYMC to go back and review the notes and ongoing day-to-day analysis that was provided.

SYMC was featured in the July 2008 CANSLIM.net News (read here), and it sputtered for weeks before a gap up above its 50 DMA line on 7/31/08 for a considerable gain on above average volume. Disciplined investors would note that a proper new technical buy signal was never triggered by gains above its $22.05 pivot point on heavy volume at least +50% above average.  Market conditions (the M criteria) made it difficult for it to make any further headway. Multi-year highs were a stubborn resistance level near $22 once again. Thus, a careful investor would not have even suffered a small loss, let alone a big one!

C A N S L I M | StockTalk | News | Chart | SEC | Zacks Reports |  

 C A N S L I M | StockTalk | News | Chart | SEC | Zacks Reports |  

CANSLIM.net Company Profile: Symantec Corporation provides software and services that protect, manage, and control information risks related to security, data protection, storage, compliance, and systems management. The company operates in four segments: Consumer Products, Security and Compliance, Storage and Server Management, and Services. It also offers managed security services, consulting, education, and threat and early warning systems. The company offers its services to enterprises, governments, small and medium-sized businesses, and consumers worldwide. Symantec Corporation was founded in 1982 and is headquartered in Cupertino, California. SYMC resides in the the Computer Software-Security group which is presently ranked 66th on the 197 Industry Groups list which is just outside the top quartile.  Other high-ranked Computer Software stocks are helping provide leadership so satisfy the L criteria.  The stock's up/down ratio is at 1.2, which has bullish ramifications.