 Gold Customer
Joined: 11/11/2006
Posts: 359
|
In scanning stocks from the 20Feb07 IBD select list, I identified four that are still showing some strength.
CYNO has had a six day drop in price,from 25ish to 21.21. All during this drop, BOP is very good, even quite strong, TSV has not penetrated its "0" line and MS is above its 22MA. The gap up in Feb is almost filled and there is a texbook Gravestone candle Friday.
For your consideration, SYNT, LHCG and VDSI are also presented.
Good trading
MAMMON
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
Yes, all have excellent IBD numbers. Agree with you very much on CYNO...I had CYNO on my watchlist for weeks and for some dumb reason I watched its high volume breakout in early Feb. and failed to buy. It is most definitely getting my attention now and will be hard to resist nibbling around current levels...will be closely watching the gap area hoping for a fill then rebound, but would not be surprised at all to see it go lower and maybe test the 50-day with the way the market is acting. I like this stock a lot.
VDSI...I sold my position Friday for a tiny gain...had been up pretty good from initial buy at 16.50 couple weeks ago. I REALLY like this one once the market settles down whenever that may be. Since I'm out hope it goes closer to 15 so I can get in on bigger position size.
LHCG...I got shaken out of it early Jan., have been watching closely since, then when it broke out of its 2 mo. cup Thur and Fri on excellent volume I was too scared to buy because of market weakness and possible impending further weakness. I did nibble on a couple longs last week with very small starter sizes but couldn't bring myself around to make another buy in a new position. Yes, this is another stock I REALLY like:)
Glad you brought up these names up, as they are all good examples of quality stocks with most having IPO'ed fairly recently, new high areas, technicals, fundamentals, young growth,etc. IMO these are the type stocks folks should be watching for new entries, not beaten down $3 stocks with poor institutional backing.
|
|
Registered User
Joined: 1/24/2007
Posts: 4
|
May I ask what scanners you were using to pick these stocks Mammon?
I too liked these picks very much and agree with fpetry's comments, but with the market's recent instability I'm working on a few new strategies when scanning for stocks. I've lost some confidence in the system I've used in the past and now am looking to branch out. I do, however, think these are very nice picks, and am interested as to how you found them.
~Persyeq
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
CYNO just filled gap...I started new position with 1/3 starter size at 20.80, hope to add on strength in days/weeks ahead, but wouldn't be surprised to see more weakness via overall market trend now; however, it has such excellent IBD fundamental numbers and fact that it's already pulled back quite a bit, that I just had to take a bite at current appealing price. If the 200-dady fails I'm out.
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
QUOTE (fpetry) If the 200-dady fails I'm out.
I hope not, lol, meant the 50-day, currently at about 19.75.
|
|
Registered User
Joined: 3/21/2006
Posts: 4,308
|
I am still in the learning proccess and need to ask (not to start trouble), but where is this source of strength that you see in SYNO???
I have looked at all my indicators, and have failed to see strength.. Failing indicators while in the middle of a Market corection is scary stuff, Better off with ALTI..
(IMO)
Apsll...
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
apsll, I don't see recent strength in CYNO either, at least on a 2 week time period, but six mos. is another story. It's a thinly traded stock and not well known (IPO'ed little over a year ago) and thus is definitely on the volatile side, but I like it going forward in months ahead. If I get stopped out soon I'll simply enter again at another point in time most likely. From my point of view I'm simply taking advantage of its current weakness to start building a position in it. I like to look at it from both sides, technical and fundamental too.
|
|
Registered User
Joined: 3/21/2006
Posts: 4,308
|
Thanks Fpetry, I thought that I was missing somthing..
I guess that when this crrection is over there will be a lot of bargains to look at.. In the meantime I am just considering stocks with outstanding indicator activity (ALTI) for example, short term plays only, things can turn in a heartbeat in this kind of Market...
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
Good call by you on ALTI....wish I had jumped on it much earlier...it's up too high now for new entry imo. I would be real careful here as it's at Oct. resistance, but the way these single digits trade sometimes it might keep on chugging, good luck.
|
|
Registered User
Joined: 3/21/2006
Posts: 4,308
|
Just to set the record strait, ALTI was Bcraigs call, but I did buy this morning at $3.60
I will probably sell end of day for a quick profit, I agree with you about the resistance...
|
|
Gold Customer
Joined: 11/11/2006
Posts: 359
|
persyeq; nothing mysterious in the scans. In order to create a pool of good fundamental stocks to draw from for technical trading, I create a watch list of the IBD Select(Investors Business Daily) stocks as well as the IBD 100. Update these every few weeks. Another ploy is to scroll down the NYSE and NASDAQ main tables and create a watch list, taylored to your taste. IBD rates their stocks by three letters and three numbers. I generally choose stocks with at least one 90 or better rating with the other two being at least 80. I like three letters to be no lower than "b"
IBD has a pretty decent rating system for the fundamental aspects of stock selection and I have felt that it would satisfy the due process part of stock picking. Most certainly the Select and 100 list will contain stocks with high fundamental values. And its fast.
A watchlist of stocks of "90","80", etc will give you a list of about 800 strong stocks to choose from. A good idea to take a quick look in Stock Checkup area of IBD for close look.
It ain't perfect, its reasonable.
Good trading
MAMMON
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
mammon, I use a similar approach to finding fundamentally above avg. stocks with IBD, then put them in Telechart watchlists. I also of course use my TC scans for technical breakouts and then cross check them with IBD. The two services are excellent companions imo.
|
|
Registered User
Joined: 3/21/2006
Posts: 4,308
|
This is a very interesting thread, and I would like to add my input about IBD.. (Again in no way am I trying to start any trouble) I used to read the publication on a semi regular basis..
I found when tracking the top 100 list for performance over say a one month period, the track record was not good. The stocks always appeared to be close to the top of their runs with little gains left.
I would read that the best performing stocks were the ones that had increasing and improving quarterly fundimentals, but they would highlight them in my opinion to late to harvest any substantial profits. (it is easy to find fast moving momentum stocks with great fundimentals that have been runing up in price for some time). I can do that with telechart.
They should be highlighting stocks in the early stages of these runs.
They have the new America section to find the up and comers, but I found that these also had a poor track record and although some had great success, few did..
These have all been my observations, nothing more..
By the way CYNO is having a good day and ALTI (Not so much)
Good trading to you all
Apsll...
|
|
Gold Customer
Joined: 11/11/2006
Posts: 359
|
fpetry: of interest to note that the investor service:AAII gives the stock screen criteria for very many of the prominent gurus. It found that O'Neil, of IBD, had the highest success, in some catagories. And this was using ONLY the screening criteria, without reference to technical breakouts, etc. And this is the strength of IBD. Now, I don't buy from screens, but it does give some support to the validity of his system. I enjoyed breakout trading and the search for triangles, etc. using "Amibroker" which is quite good for trendlines,etc. but does not scan well. I am slowly shifting my focus more toward Candlestick trading at points of interest, such as strong candlesticks forming when indicators are at decision points,at trend line decision points or at technical formation decision points, such at triangles or brief pullbacks to support.
Sometimes we need all the help we can get
Good trading, Mammon
|
|
Gold Customer
Joined: 11/11/2006
Posts: 359
|
apsll: That is precisely what I found to be true with IBD lists. That is one reason that I do not update them frequently. Using criteria on the Main tables does seem to fing good fundamental stocks that have not exhaused themselves prior to publication on list. It is informative to open a free account with Clear Station and put IBD lists in their Watchlist section and leave them there for 6 months or so and see the outcome.
Good trading
Mammon
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
apsll, if you read O'Neill carefully he states that the IBD 100 is simply the top performing stocks, naturally, and many of them may be past optimal buying points. Matter of fact I rarely look at the top 100, instead spending my time searching for highly ranked IBD stocks that haven't yet made the 100 list. I do this by honing in on stocks that are young (recent IPO's of a half dozen years or less) with accelerating earnings, etc., with high IBD ranks, but not quite high enough to make the 100 (usually). By the time a stock has been on the 100 list for a while, everyone knows about them and by then I may have missed a big runup. Now what I just stated is in general terms. Heck, I like to find stocks any way which way but loose. After reading Worden's note on BRCD last night I studied it more closely this morning, liked what I saw, and started a position in it this morning. And by the way BRCD has super good IBD numbers, but it's not on the 100 list...I know that without looking because it's a single digit stock and those can't make the list.
|
|
Registered User
Joined: 3/21/2006
Posts: 4,308
|
I used to make profits with IBD by going down the under $10.00 stocks list and finding the best rated securities with A or B for accumulation, and then watch the charts on Big Charts.com for great entries..
Those were the good old days but they discontinued that section and that is when I stoped reading IBD. Maybe I need to re-visit the publication..
I also like BRCD here, it has finally broken the high of the four year consolidation or (Sideways pattern).
The weekly chart is very nice and shows some long term accumulation. It is above all the major Moving Averages and moving in the right direction..
|
|
|
Guest-1 |