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One word - Investors Business Daily Newspaper. That is a great starting
point. This tool allows you to greatly reduce the amount of stock charts
you scan, test, analyze, etc. They highlight RS, Industry Group Analysis,
Insider Ownership, and the other fields you noted. Highly recommend.
They have their paper online but it does not post the data you (we) are
looking for.
As for group/industry analysis -- that must be your starting point. I do
not focus on any individual stock to go long or short until I have assessed
the industry direction first and market direction second. Only subsequent
Industry and Market analysis do I analyze stock charts for long/short
candidates. Typically, the long/short candidates are the industry's
leaders/laggards.
Regards,
Tom
----- Original Message -----
From: Michael Robb <mrobb@xxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Sunday, April 11, 1999 12:30 PM
Subject: Re: Omnitrader, what is your experience?
> A recent advertisement proclaimed the best returns were made owning stocks
> (buy and hold, fully invested) in the best perfornming industry
group...and
> suggested searching for the following characteristics as a method for
doing
> so:
>
> 1. Rapidly growing Sales, and Earnings - Potential to double or triple
in
> one year. (How measured?)
>
>
> 2. Institutional Support (unknown amount)
>
>
> 3. In one of 197 "Sectors" * in which 90% of stocks are going up (?)
> Recommends Technology, Health care, and leisure...over next few years).
>
> 4. At or near 52 W High (-10% perhaps)
>
> 5. High Relative Strength > 90% in "Industry Group"
>
> This sounded like it could become a coherent method for long term
investing,
> if the correct scans and searches can be performed.
>
> The ad claims being in the top industry group for 33 years beat timing the
> averages 58% to 14%, compounded APR.
>
> Three points seem clear: 90% Group RS, near 52 W High, and some minimum %
> institutional, Fund ownership.
>
> Almost as clear is the cutoff for rapidly growing sales and
> earnings...although I do not sense exactly where the proper rate must be
for
> a 2 or 3 times price increase in one year.
>
> And thirdly, how best to find such candidates in an industry group in
which
> 90% of the stocks in the group are moving up? (period of time, to what
> extent?)
>
> Does anyone believe this is a fruitful field of study, and if so, has it
> been written down already?
>
> Any comments would indeed be appreciated.
>
> Michael Robb
>
> * I think he confuses Sector with Industry Group, as I have not seen where
> there are 197 Sectors.
>
>
>
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