Monday, January 16, 2012

Leading Stock Analysis Section Explained

Many have asked what all those annotations are in the Leading Stock Analysis Section (Updated 01-12-2014).  I'm going to try and explain it as best as I can w/o going overboard.  The list is narrowed down by from multiple screens based on Historical Studies of Big Winners and tries to only exhibit the best of the best.  In a Strong Bull Market or UpTrend, the list will provide more then enough Big Winners.  Use the list as a starting point for your own Research and not a recommendation to buy or sell the securities.

The Ratings and Ranks Columns have to be used together.  The Reasons Column abbreviates various Pullback and Base Formations.

Ratings Column

G = The Stock has already broken out and is acting fine.
Y = The stock has exhibited a potential sell signal (generally minor), but, these type of signals occur throughout a stocks move and need to be monitored not necessarily acted upon.  If too many stocks are exhibiting similar sell signals then you may need to act upon it.
R = The Stock has exhibited a major sell signal and should be acted upon or watched very closely especially if you don't have a cushion on it.
W = The Stock should be watched for potential short term trading opportunities.

Ranks Column

1 = Stock has excellent fundamentals and is within range of a Buy or Add point.
2 = Stock has excellent fundamentals and should be watched for a Buy or Add Point.
3 = Stock has good or excellent fundamentals but can only be valued based on technicals.
4 = Don't worry about, it's a mess but has to be ranked for the overall analysis.

Reasons Column

* = Stock has many characteristics of a Big Winner in a Bull Market
FB = Flat Base
C = Cup
CH = Cup and Handle
CHH = Cup and High Handle
DB = Double Bottom
DBH = Double Bottom and Handle
AB = Ascending Base
HTF = Hight Tight Flag
PB = Pullback - # following indicates which Moving Average or a P = Pivot Point
FB*CH = Flat Base next to or on top of a Cup and Handle.
3WT or 3TW = 3 Weeks Tight
NBO = New Breakout - Type of Base
BB = Bottoming Base
RS = Moving up Right Side
FH = Forming Handle or within range of potentially forming a handle.
S+3 = Shakeout +3 entry potential
HVB - High Volume Break - # following indicates Moving Average or other area.
Stall = Stalling Action
NHLV = New Highs Low Volume - # following indicated # of weeks.

The list is sorted my the strongest group and stock within the group.

I do my best to be as accurate as possible.  Sometimes I just cannot figure out what I am looking at and do my best classifying it.  Other times I see it differently from everyone else, so it's OK to disagree (that's what makes the market work).

If you anyone has any questions, email me and I will gladly answer you.  Good Luck and Thanks for Reading.
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