Reducing the IBD 200 list to few opportunities | stockbee

5/28/2007

Reducing the IBD 200 list to few opportunities

The IBD 200 list offers opportunities at various stages. Some opportunities are overextended and too late to get in. To identify the best and handful of opportunities with best potential, here is what I do.
  • The total list has 200 stocks.
  • Sorted it by 65 days growth with one day offset using Telechart scan : 100 * (C1 - C66) / C66
  • Selected the stock which had less than 10 % growth in 65 days.
  • That gives 27 stocks.

ACTU,Actuate Corporation (Google  Yahoo  Earnings  Chart
ANST,Ansoft Corporation (Google  Yahoo  Earnings  Chart
AOB,American Oriental Bioengineering Inc (Google  Yahoo  Earnings  Chart
ARD,Arena Resources Inc (Google  Yahoo  Earnings  Chart
BHP,BHP Billiton Ltd (Google  Yahoo  Earnings  Chart
BLUD,Immucor Inc (Google  Yahoo  Earnings  Chart
CENX,Century Aluminum Company (Google  Yahoo  Earnings  Chart
CNS,Cohen & Steers Inc (Google  Yahoo  Earnings  Chart
DSX,Diana Shipping Inc (Google  Yahoo  Earnings  Chart
EDU,New Oriental Edu And Tech Corp (Google  Yahoo  Earnings  Chart
ELP,Companhia Paranaense De (Google  Yahoo  Earnings  Chart
GGB,Gerdau Sa Ads (Google  Yahoo  Earnings  Chart
HURC,Hurco Companies Inc (Google  Yahoo  Earnings  Chart
ICE,Intercontinental Exchange Inc (Google  Yahoo  Earnings  Chart
ICLR,Icon Plc Ads (Google  Yahoo  Earnings  Chart
IGLD,Internet Gold-Golden (Google  Yahoo  Earnings  Chart
MICC,Millicom Intl Cellular Sa (Google  Yahoo  Earnings  Chart
MR,Mindray Medical Intl Ltd (Google  Yahoo  Earnings  Chart
OMCL,Omnicell Inc (Google  Yahoo  Earnings  Chart
OYOG,Oyo Geospace Corp (Google  Yahoo  Earnings  Chart
PCLN,Priceline.com Inc (Google  Yahoo  Earnings  Chart
SJR,Shaw Communications Cl B (Google  Yahoo  Earnings  Chart
SQM,Sociedad Quimica Chile (Google  Yahoo  Earnings  Chart
SSW,Seaspan Corp (Google  Yahoo  Earnings  Chart
TEX,Terex Corp (Google  Yahoo  Earnings  Chart
TKC,Turkcell Iletisim Hizmetleri ADS (Google  Yahoo  Earnings  Chart
TRMB,Trimble Navigation Ltd (Google  Yahoo  Earnings  Chart


Now this list can further be reduced based on sector action or whether the stock is in early breakout phase or late breakout phase.

Two stocks which offer the best opportunity probably are MICC and SSW, out of this reduced list of 27 stocks based on lack of breakout in last 60 days or so on both of them. MICC is a Luxembourg based cell phone operator famous for it Tigo brand service in emerging markets. While SSW is a shipping container chartering service. Both sectors are currently in favor. So I will be watching these two out of the 200 for a possible 4% plus breakout.

21 comments:

ivanhoff said...

why are you looking for stocks that are up less than 10% for the last 65 trading days as possible long candidates? Isn't that low performance in a bull market a warning for relative weakness? If you're not willing to go long with the so called overextended stocks, would you dare to short them in that choppy market's environment?

Howard said...

very interesting. well done.

Pradeep Bonde said...

Ivanhoff
Relative strength is good but too much relative strength leads to reversal in near term or underperformance in next 30 to 65 days.
Bull market are characterised by sector and stock rotation, new stocks and sectors with near term weakness but long term relative strength (65 days consolidation or weakness) lead such series of rotations.
Overextended stock does not necessarily make a stock a short.

Howard
Thanks

QUIKTDR said...

Given a list via your scan how do you differentiate the stronger candidate to trade?

Relative strength 1 yr vs SP500 or

some type of volatility gauge?

Pradeep Bonde said...

The IBD 200 on Thursday, already is selected based on relative strength as one of the component of Composite rating.

mystockdiary said...

Hi Pradeep,

Good reading and nicely put on your blog. very intersting to me as I always play breakout only, I was thinking to scan smallcapcenter for stocks which have mid to long tern comsolidation after breakout, so I can catch the nect breakout, I guess your thory kinda same as mine but better as you use IBD stocks. I will follow your posts from now on. Thanks

Anand - abcstocks@gmail.com

Susan said...

If they have a 4% break with no catalyst, would you buy?

Pradeep Bonde said...

They have earnings momentum and relative strength as catalyst.

Pradeep Bonde said...

and also sector momentum is catalyst in the IBD 200 list.

Susan said...

Good point, but since they already have earning momentum and RS as catalyst, then we dont need the 4% breakout to buy right?

Pradeep Bonde said...

If you buy without breakout, it is dead money, the stocks may or may not move in intended direction. Breakout indicates new interest by big speculator.
All big moves of 100% plus kinds have high volume breakouts triggering the move.

Susan said...

understand now, thank you.
And you'd buy the next day on open with a stop in previous 2 days low? Timing the entry seems to be my problem.

Pradeep Bonde said...

In most cases on day of breakout itself by 3 p.m. or even earlier. Yes stop is previous 2 days low. So if breakout is today, stop would be Thursday low.

Art said...

Are you aware of a TC scan which would separate a watchlist by groups? Or, better, would search a watchlist for a list of stock(s) in a particular group?

Art said...

group=sector in my last post sorry.

Pradeep Bonde said...

You can do that by flagging or using sublist feature in Telechart.

Pradeep Bonde said...

You can sort by Industry or Sub sector any list. Those are "System Sort" criteria.

Art said...

I got it. I was not looking in the right area. Thanks. Wow! That is a powerful feature.

Art said...

Can a tab be made for sub-industry group? I haven't found a way yet.

And can one create more than the ten tabs (ie 11, 12, etc)?

Pradeep Bonde said...

1 yes
2 no

Art said...

I found it. thanks anyhows