Eben@CANSLIM ResearchI ran the CANSLIM screen tonight and 48 stocks made the cut. That’s a decent number — not a flood, not a trickle. What jumped out was the industry group strength: Pharmaceuticals & Biotech had 12 names, Energy had 6, and Semiconductors had 4. That tells me where the smart money is hunting right now.
Why These Stocks Pass the CANSLIM Screen
The screen filters for the core CAN SLIM letters. C (current earnings): quarterly EPS growth of at least 20%. A (annual earnings): EPS rating of 75 or higher. N (new): each stock is within 15% of its 52-week high, meaning something new is happening — a new product, new management, or new price trend. S (supply and demand): average daily volume over 100,000 shares, so institutions can trade them. The composite rating of 80+ bundles these factors into one score. These are not random picks — they are mechanically screened leaders.
AAMI — Tight VCP, almost Ready
This one caught my eye. AAMI shows a proper volatility contraction pattern (VCP) with contractions shrinking from 19.2% to 14.6% to 8.1%. That’s the Minervini signature — each pullback smaller than the last. Volume is drying up inside the base, which is exactly what you want to see. The base is only 4.8 weeks old though, and O’Neil likes flat bases to be at least 5 weeks. So it’s a touch early. Price sits 6% above the 50-day moving average, and the up/down volume ratio over 20 days is 1.62 — that’s strong accumulation. I like the tape here, but I’d wait for the full 5-week maturity before pulling the trigger.
ADPT — Bull Flag, but too Extended
ADPT has a bull flag pattern. The flagpole gained 45.6% in 20 sessions — that’s a powerful run. The flag itself is only 5 sessions deep and 9.7% deep. That’s tight. But here’s the problem: price is 23.6% above the 50-day moving average. That’s extended by any measure. O’Neil says chasing stocks more than 5-10% above the 50-day is late. The 10d/50d volume ratio is 0.9, so trade isn’t heating up. This one worries me — it could work, but the risk of a sharp pullback is high. I’d put it on a watchlist and wait for it to come back toward the 50-day.
AMD — Cup Base, too Early
AMD is forming a cup-shaped base that’s 21.3% deep and only 3.2 weeks old. O’Neil’s rule: a cup needs at least 7 weeks. This one isn’t mature yet. The contraction sequence doesn’t show a VCP — it goes 14.0% to 13.2% to 18.0%, which is not shrinking. Volume is drying up, which is neutral. Price is 6.4% above the 50-day, so it’s not extended. But the base is simply not ready. I’d watch it for a few more weeks.
ASX — Bear Flag, under Distribution
ASX shows a bear flag: a 20.3% drop followed by a weak 4-session drift. Price is still about 10% below the high. The up/down volume ratio over 20 days is 0.73 — that’s distribution, meaning institutions are selling. The 10d/50d volume ratio is 0.76, so trade is drying out. This is not a buy. It’s building a base mid-correction, and I’d only watch it if it forms a proper bottom and volume turns positive.
AVT — Mature Triple Bottom, Constructive
AVT has a triple bottom pattern that’s 7.0 weeks old and 15.9% deep. That’s mature by O’Neil’s standards. The three lows near $80.13 are holding, and the mid pivot at $88.87 is a potential buy point. The up/down volume ratio is 1.43 — strong accumulation. Price is only 3.2% above the 50-day, so it’s not extended. The contraction sequence isn’t perfectly shrinking (13.1% -> 14.2% -> 11.1%), but it’s close. I like this one. It’s under accumulation and the base is mature. A breakout above $88.87 on heavy volume would be a valid entry.
BTSG — Testing Highs, No Confirmation
BTSG is testing its 52-week high, but volume is not confirming. The 10d/50d volume ratio is 1.55, which sounds high, but the up/down volume ratio is only 0.46 — that means most of that volume is on down days. That’s a red flag. Price is 8.4% above the 50-day, so it’s not extended, but the volume story is weak. I’d wait for a strong up-volume day before considering this one.
BWAY — Mature Triple Bottom, Accumulation
BWAY has a triple bottom that’s 9.8 weeks old and 20.6% deep. That’s a long, healthy base. The up/down volume ratio is 1.3 — that’s accumulation. Price is 9.4% above the 50-day, which is a bit high but not crazy. The contraction sequence goes 20.6% -> 8.4% -> 18.3%, which is not a perfect VCP, but the base is mature and volume is positive. I like this one for a watchlist. The buy point area is near $16.26.
CDNA — Extended, Chasing Territory
CDNA is 43.1% above its 50-day moving average. That’s extremely extended. The 10d/50d volume ratio is 1.39, so trade is hot, but that doesn’t matter when you’re this far above support. A pullback of 20-30% would be normal here. This is a chase, not a setup. I’d skip it.
CGNX — Double Bottom, Early Stage
CGNX shows a double bottom (W pattern) that’s only 3.2 weeks old. That’s too early — O’Neil wants at least 7 weeks for most bases. The contraction sequence is shrinking (14.2% -> 7.5% -> 6.9%), which is good, and volume is drying up. Price is 2.3% below the 50-day, so it’s resting. The up/down volume ratio is 1.29 — mild accumulation. I’d watch this one for a few more weeks as the base matures.
CTOS — Bear Flag, Watch only
CTOS has a bear flag: a 23.4% drop followed by a weak 12-session drift. The up/down volume ratio is 0.7 — distribution. Price is 5.2% above the 50-day, but the pattern is bearish. This is a watch-only stock. It needs to form a proper base and show accumulation before I’d consider it.
DAVE — Extended, No Base
DAVE is 27.4% above the 50-day and has no base at all — it’s at a 52-week high with only 2 sessions of price history since that high. That’s not a base. The up/down volume ratio is 2.03, which sounds great, but the stock is extended. This is a momentum chase, not a CAN SLIM setup. I’d pass.
DELL — Double Bottom, Mature
DELL has a double bottom that’s 7.2 weeks old and 23.9% deep. That’s mature. The mid pivot at $463.48 is the buy point. The up/down volume ratio is 1.01 — neutral, not strong accumulation. The contraction sequence isn’t shrinking (23.9% -> 14.7% -> 20.6%), so it’s not a VCP. Price is 15.9% above the 50-day, which is getting extended. I’d watch it, but I’d prefer to see volume pick up on up days before buying.
How I Would Use This List
I’d focus on the stocks that are forming mature bases with accumulation: AAMI (once it hits 5 weeks), AVT, and BWAY. I’d wait for a proper pivot point — a breakout above the buy point on volume at least 50% above average. I’d set a stop loss at 7-8% below my entry, no exceptions. And I’d check the general market (the M in CAN SLIM) before buying anything. If the market is in a correction, I’d sit on my hands. No buy or sell recommendations here — this is educational.
FAQ
What Is the CANSLIM Screen?
It’s a stock screener based on William O’Neil’s CANSLIM investing system. It filters for stocks with strong earnings growth, solid fundamentals, and healthy price action near highs. The screen I ran tonight found 48 stocks that meet those criteria.
What Does “extended” Mean in Stock Charts?
It means the stock has risen too far above its 50-day moving average — typically more than 15-20%. Buying extended stocks is risky because they often pull back sharply. O’Neil advises waiting for the stock to come back toward the 50-day before buying.
What Is a Volatility Contraction?
It’s a pattern where each pullback in a stock’s price gets smaller than the last, while volume dries up. This shows that sellers are losing power and the stock is coiling for a breakout. Mark Minervini calls this a VCP (volatility contraction pattern).
This content is for educational purposes only and does not constitute financial advice. Always do your own research before trading.
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