Re: Weekly Pick (long)

[John Manasco <manasco@xxxxxxxxxxxx>]

Steve Karnish

Thanks for your post on how to gain 10%/month. Now I'm going to pick on
you. I see many posts like this and read many articles in a similar
vein. Your general comments are very good but most people on this list
are looking for specifics. I think most people are in a constant
learning mode and benefit from seeing what systems and indicators work
for other people. Jim Greening lays his system out for everybody to
learn from and criticize. Al Taglavore put out a recent system for all
to see.

O.K. I'll quit picking on you. You have had many good posts. I'd like to
see a thread started where people lay out their systems and indicators.
Lets discuss the merits of each in a positive way so that others and
ourselves may learn from them. Maybe we'll all end up trading more
profitably.

So here's my system. I screen every day for stocks making new 250 day
highs using the hhv function, C>hhv(C,250). I look for stocks whose
closing price is greater than 5 and less than 100. I screen for stocks
whose 50 day moving average of volume is greater than 50000 shares.
Mov(V,50,S)>500. I look for stocks whose ADXR is greater than 30,
ADXR(14)>30 and whose ADXR is rising, ADXR(14) > Ref(ADXR(14),-5). I
also screen for stocks being accumulated using the Chaikin A/D
Oscillator, CO() > 0 and CO()>Ref(CO(),-3). This give me a rising
accumulation line.

I also look at the daily advance/decline line, the McClellan oscillator
and the summation index, the daily new highs/new lows, and the VIX. I
pay attention to the S&P500 index as well as the NYSE and NASD and the
T-Bond. When the A/D line and the McClellan oscillator and summation
index are all pointing down as well as the trend of the S&P and NYSE I
stand aside, even if my screens give me buy signals. I go with the
trend.

Selling is the hard part. I tend to stick with some stocks long after
they should have been sold. I'm not comfortable with my exit strategy.
It's too discretionary. I take profits when I have a 10% retracement or
when a stock closes 8% below my purchase price. I don't always follow my
rules.

I'm in the process of creating and testing channel breakout systems and
will switch if they prove themselves.

So bring on the flames folks, what's your system like?

John Manasco