Staying on top of the market | stockbee

5/22/2007

Staying on top of the market

I am often asked, how do I keep on top of the market and sector trends. On a day to day basis lot of things change in market. New themes emerge. New sectors start rallying or end their rally. Within a sector only one stocks starts a rally. Some stocks top out and start their downtrend. In a complex market with over 7000 stocks , on a day to day basis, there is lot of noise and then there are opportunities.

If one can spot emerging themes quickly then one can exploit them. So end of day market analysis is an important tool to keep on top of the market. There are various things people do , I primarily use my 4% plus breakout universe and Episodic Pivot candidates to isolate emerging opportunities and problem areas. While I generate trade ideas from the Double Trouble or EP or IBD based methods, I look at all the stocks in the 4% plus list daily. Now this discipline helps me quickly spot trends which may not be apparent in the methods which I follow. I may or may not take trades from the analysis, but as a market understanding tool, it helps a lot. Such analysis gives you "feel" for market. It develops your "instinct"

So after market close there are couple of things I do to stay on top of market. Usually I spend an hour on all these.
  • Slice and dice the members of 4% plus scan to look at sector and individual stock trends.
  • Go through members of 50% plus and 25% plus in month list. Look at new members. Try and understand what was the catalyst.
  • Go through new members to 100% plus and 200% plus list.
  • Look at the sector trend in 65 days.
  • Look at all 4% plus breakout with IBD ratings of 70 plus on EPS.
  • Look at the top 25 trending stocks.


Doing this day in and day out helps you keep on top of the market and quickly identify emerging opportunities.

If you do this day in and day out, you will find so many opportunities both on long and short side, that you will wonder why so many traders complain about lack of opportunities.

Now for today there are total 162 stocks on bullish side. You can go through the list and see if you can find good opportunities in it.

Bullish

ACOR ADH AGIX AGP AHM AMRN ASEI ASFI ASPM AUXL AVNC AZPN AZZ BHIP BJGP BKUNA BTRX BXC BYD BZH CAL CALM CCRN CERN CMCO CMGI CNSL COMV CORS COSI CRB CREE CRNT CRTX CTLM CTXS CWST CYNO CYTC CYTO
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DBTK DDE DEPO DHI DIO DRH DSL EDAP ELMG ENER ENG ENTU ERS EZPW FBR FED FMT FSLR GBE GBN GGL GHDX GOOG GPIC GTIV HEM HMB HNAB HOTJ HOV ICE IIJI IMB IMH ISLE ISTA JAV JBLU JRJC KERX
========
KND KOP LCC LCRD LEND LIV LPA LVLT LVS MALL MATK MCEL MED MEMY MFG MGM MHO MLM MNRO MNTA MTH MTU MVIS NAL NFI NIPNY NLST NNBR NTEC NWK NYNY OLN OMRI OPWV OREX ORH OVEN PANC PDA PETS
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PLNR PLTE PNK PWER RDNT RIMM RJET ROCM RTK SBSA SGR SIF SIR SLFI SNUS SOLF SPF SPSN SPWR STEC STSI SWH SWSI TAGS TBSI TNE TNP TOL TRGL TRX TSS UAG UBNK UFS UVE VION VRAZ VSL WG WYNN
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XNL ZOLT

Bearish

AEO BBBB BBOX CFHI CTC DYS EGHT EXK FORG GIGM GMTN GSOL HL HMIN HRAY HTLD IDMI KONG KOOL LMT LTON MERC MNST MOVI MTL NAK NEXM NTBK PERY PLM SGN SNHY SSL SWZ TECD UIL UNFI UVV WYY XFML
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XTNT ZILA ZIXI

11 comments:

semsons.group said...

Out of the methods you use to find trends in sectors, what would be more suitable to detect strong trends for the next months?.
I mean, if one is interested in sectors with lasting trends for several months what indicators should be checked?.

Thanks.

Pradeep Bonde said...

Short term 40 days relative strength.

Pradeep Bonde said...

Besides that the IBD "Groups with highest % of stocks making new high". In that you have to look at the sectors which are just starting out rallies.

Semsons said...

By "new highs" do you mean 52-weeks highs?.

Pradeep Bonde said...

If you go to page B4 in IBD today, you will find this column, which lists number of stocks from a group making new highs.

Semsons said...

unfortunately I have not access to IBD.

Pradeep Bonde said...

They are 52 week highs.

Antonio said...

hi pradeep,
I live outside US. Can you tell me what is IBD200 you are talking about?
thx

Pradeep Bonde said...

IBD 200 is a list of 200 stocks published by Investors Business Daily.

Siya said...

Pradeep,

Out of these 4% breakouts, how do you go about finding stocks having IBD EPS rating of 70 plus? Do you use any tool? Is this possible to simulate inside TC2007?

Thanks,
Siya

Pradeep Bonde said...

I use a semi automatic solution.
Export the tc2000 4% scan to text file.
The text file is converted in to a blocks of 40 symbols formatted for IBD My stock list.

The 70 plus EPS from the list are entered in a formatted text file. Which then is imported in to TC2007.

Unless there are 300 plus symbols, the process takes 10 to 12 minutes.
All the scripting is in Visual Basics.