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Harold
...very interesting reply...thanks for taking time for write up...
anil
--- In Metastockusers@xxxx, "hcour" <hcourtney@xxxx> wrote:
> Steve,
>
> Yeah, that's pretty much the $100,000 question. There are probably
as
> many different methods as there are traders. One thing you might
> consider first is your "universe of stocks". Many traders prefer
high
> liquidity. For instance I like to have at least 100K average daily
> vol (50d), some prefer 300K, some 500K or even more. I prefer
stocks
> over $10, preferably $20, but others trade penny stocks and do
fine.
> You might consider professional sponsorship. Stocks tend to move
> better if the pro's are buying. You could limit yourself to stocks
in
> the S&P 500, Naz 100, R2K, semi's, just tech, whatever.
>
> Another way is to combine fundamental and technical analysis. Find
> sectors/groups w/strong fundamentals that haven't yet taken off
and
> then apply TA to get a good entry point. MultexInvestor.com has
some
> excellent screens for these kind of plays. William O'Neil's
CANSLIM
> strategy also utilizes the FA/TA combo.
>
> Once you've setup your universe of stocks there are all kinds of
> scans. I'm sure lots of members here have there own favs. A very
> popular method w/a lot of traders and a good starting point is
simple
> Relative Strength. You might start w/a scan of the S&P groups for
> instance, to find those that are outperforming the rest of the
> market. Then find the best stocks in those groups or those that
look
> to have future potential which may be late-bloomers. Another way,
or
> in conjunction w/RS, is to find low-volatility situations using
> Historical Volatility, Bollinger Bands, or Narrow-Range Bars, ect.
> Explosive moves often follow low-volatility. Others use MACD
> crossovers, RSI, blah blah blah. It goes on forever...
>
> I'm currently experimenting w/one of Martin Pring's scans that may
be
> promising. First, I copied all of the TC2K groups into MS, then
> filtered out all stocks under 100K and $3. I then made composites
of
> the groups, of which there are about 240 in about 40 sectors. I
run a
> momentum scan on all the groups to find those that are just
starting
> to gather steam (where the indicator has crossed up over its 10d
ma
> w/both lines trending up but still under 0.). Then I scan those
> groups for ones in which the momentum of the RS is just starting
to
> gather steam (same criteria). The theory here is that, unlike RS
> scans where the group/stock may have already shot its wad, this
scan
> will find bottom candidates w/good solid upside potential.
>
> I ran the scan the first time this weekend. These are the most
> interesting of the results. Charts are linked.
>
> Auto - Major Manufacturers
> Auto - Auto Parts
> Chemicals - Specialty
> Diverse Services - Rental & Leasing Services
> Health Services - Long-Term Care Facilities
> Leisure - Resorts & Casinos
> Manufacturing - Metal Fabrication
> Retail - Dept. Stores
> Wholesale - Auto Parts
>
> http://photos.yahoo.com/bc/hcour/vwp?.dir=/&.dnm=1MoMo+Groups+11-
15-
> 02.GIF&.src=ph&.view=t&.hires=t
>
> http://photos.yahoo.com/bc/hcour/vwp?.dir=/&.dnm=2MoMo+Groups+11-
15-
> 02.GIF&.src=ph&.view=t&.hires=t
>
> http://photos.yahoo.com/bc/hcour/vwp?.dir=/&.dnm=ManMetFab+MoMo+11-
> 15-02.GIF&.src=ph&.view=t&.hires=t
>
> Thses are short-term charts and show the groups in relation to
their
> July lows. The first 2 charts show all the groups except Metal
Fab.
> The 3rd chart shows the Metal Fab group and the 5 stocks that make
up
> the group.
>
> Of course, these composites are specific to my filtering criteria.
So
> someone else's Metal Fab group may not be in sync w/mine. This is
> just an example of the method.
>
> Harold
>
>
>
>
>
> --- In Metastockusers@xxxx, "Steve" <steveftw@xxxx> wrote:
> > Would anyone have any recommendations for specific indicators or
> > studies for the potential of a stock? I've found the hard way
that
> > picking the right entry point is one thing - but finding the
stocks
> > with the potential for substantial gains is quite another (I
> > know-stating the obvious).
> >
> > Thanks
> >
> > Steve in Ft. Worth
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