Watchlist | stockbee

6/05/2007

Watchlist

If you are going to buy 70 plus EPS rated stock with either 30 or 65 day weakness on 4% breakout, you can generate a watch list of same in advance. There are several advantages to it. You can get in to the stock earlier and benefit from the breakout day move. If you are more skilled you can enter in anticipation of breakout.

The steps involved are same as in reducing IBD 200 list to few opportunities:
1 Build a 70 plus EPS rated stock list
2 Sort by 65 days and 30 days growth to take only those stocks whose price growth is below 10%
3 Sort by "Price as percent of 52 week high" and take those within 15% or 52 week high.
4 Sort by IBD relative Strength to remove those below 65
5 Now this is your list. You can further reduce it by whether it is first stage, second stage or third stage base.

Now this is a simpler way to do it. There is more difficult way to do it. It is called Technical Analysis. You will just need to go through 1000 plus stocks one by one and identify flat bases and cup with handle. All the best if you want to do it everyday.

9 comments:

jf said...

Hi, your stocks in focus picked up EXM. I am wondering what is the reasoning behind its rally today? Thanks

S said...

Hi Pradeep,
How do you build 70 plus EPS stock list. I could not locate a search screen which will return all 70 plus EPS stocks on investors.com. Is it part of Daily Graphs subscription.

Thanks

Mike said...

Hi Pradeep,
How to scan plus70 eps in tc2007.Do you have the equation.
thanks

Pradeep Bonde said...

jf
There are many reasons stock go up. Shipping sector is currently going up.

S
Expensive Solution is Daily Chart.
Economical solutionn is to build a software to read Digital edition tables.

Mike
EPS ratings are not from Telechart.

m said...

Pradeep,

Could you generate the watchlist from IBD etables...
Sort by EPS (+70)
Sort by RS (+65)
Price Change% >4%

This will limit to IBD stocks and then would you have to manually look up 65 day and month %movement?

Thanks!

Pradeep Bonde said...

I am sorry to say this but all these proliferation of products by IBD is just a scheme to milk money. etables is very inadequate, half baked product.
It will not allow you to scan the way you indicated. Plus it gives you only I think 300 stocks in any scan.

One way you can build list is nby taking all the members of various lists in etables like:
1 IBD to fundamental stocks
2 Composite Rating 95 plus
3 IBD 100
4 IBD 85-85
5 IBD New America
and the top 300 stocks ranked by EPS and put them all in one list in Telechart and operate on it.
You will get sufficient number of candidates in the list.

QUIKTDR said...

I understand how you are deriving your potential candidates but how do you differentiate the strongest candidates... by Relative Strength 1-YR (vs SP-500), Money Stream Surge -1 week, Volume Surge 5-Day or Volume Surge Today ???

Thank you in advance!

Siya said...

Pradeep,

Thank you again for so generously sharing these great ideas. Could you please comment on the followings:

1. If I create such a database then I guess, it needs only be updated at the end of each earning season as the EPS rating should not change afterwards.

2. You said "Economical solution is to build a software to read Digital edition tables". This is a very interesting idea to me. What are the tables in IBD will be needed? Will "NASDAQ MAIN TABLES - Stocks $10 And Above" will be sufficient?

3. Is there any other place in IBD to get information about lower price stocks say, between $4 and $10?

4. When you've time, could you please provide a few ideas how to anticipate the breakouts?

Thanks,
Siya

Pradeep Bonde said...

Siya
Tks
1 You are right but earning season technically never ends, some companies continue announcing earnings right till next season. Plus some industries like Retail, investment banking etc have different reporting cycles. So in reality it is difficult to define a cut off.

2 There is a reader user Bhanu who has developed a hack to get IBD 200 without typing in. Same way others have done the same. Some 4-5 people have shared a hack with me for converting the pdf file to txt file. So essentially you need some software background to do it. Some of those readers should comment on how they have done it.

3 Daily Charts or IBD stock below 10 which is separate service.

4 Send me an email, you are way ahead of most of the people on this methodology.
There are many other things which can be done to further improve this and I will share some of that once you send me a mail.
This is just first step. If you further value add then you can significantly improve your returns.