Every Friday the IBD newspaper publishes a list of stocks under Your Weekly Review. These stocks list is a curated list of stocks with growth and momentum and extremely good source of ideas for growth investor.
David Ryan the Market Wizard who also worked for IBD earlier and developed most of its rating said this list is his main source of finding growth stocks along with Marketsmith Growth 250. All the big stock movers show up on this list during its big move. During the Minervini Master Traders seminar, I spoke to him and he said this is one scan he religiously looks at every weekend to find buy ideas. He created the scan many years ago when he worked for O’Neil.
What really is this list and how are the stocks selected. If you read the fine print accompanying the list, you will see following description:
Basically it is list of stocks with:
- 85 plus EPS ratings (that means they are in top 15% in relative rank in terms of their earnings growth
- 85 Relative Strength rating (that means in top 15% by price momentum rank )
- 15% of 52 week high
- 50 day daily average volume above 100000
Essentially it is a list of growth stocks with momentum. It is published on Friday so that subscribers can study it on weekend and create their watch list for next week.
The list is accompanied by small charts for each of the stock in the list with lot of useful information and buy points like:
- sector rank
- shares outstanding
- composite rank
- EPS rank
- RS ratings
- Brief business description
- Annual EPS growth
- Daily Average volume
- last quarter EPS and sales % growth
- 4 qtr EPS
- EPS due date
- Accumulation /Distribution rating from A to D
- buy point and chart comment
As you can see it has ton of information packed in small chart. That information is helpful for seasoned growth investors who want to go into more details.
If you subscribe to Marketsmith, then you can generate this list daily by using a simple scan and that way you may not miss any stock that makes to the list during the week. The image above shows how you can do that in that scanner.
The best way to use this scan is for finding anticipation setups. For working people this is a good way to find growth stocks. For those looking for longer term position trade ideas this scan also gives you best of the best growth stocks. A 30 minute effort on weekend is all that you need once you understand the logic and rationale behind this scan.
How well does this scan do as compared to S&P?
The key to using it is to develop a process flow to analyse the list weekly or daily and then identify good anticipation setup and figure out your entry point and then focus on entering that position during the week if triggered.
If you are serious about making money trading then 30 minutes of weekend effort on the 85-85 list can help you find some very profitable growth stock trades.