Following the Generals.
Using the Don Beasley/JimBat Trade Methodology in selecting the top Stocks. This successful mutual fund strategy is now as effective with MOMENTUM STOCKS. Plans are to evaluate up to the top 100 stocks and report the results at least weekly on this board.
CRITERIA is the number of analysts who cover a stock (within the past 90 days), the more clients that will follow their recommendations. The more clients in any single stock, the more money fueling that issue's advance.
Taking this theory further, if only two analysts have a "buy" recommendation on a stock, that is not nearly as bullish as 15 analysts with a "buy" rating simply because there is not nearly as much money, and therefore, momentum behind the issue.
Please note that all Momentum Ratings are from broker reports issued within the last 90 days. It is our opinion that reports that are more than 90 days old do not carry nearly as much weight (i.e. create as much momentum) as those issued in the last three months.
(Don Beasley's Buy-Sell Parameters)
BUY RULES:
1. Stochastics/RSI value (column A below) must be over 50 percent
2. Stochastics/RSI value must be in top 10 percent of funds considered
3. Stochastics/RSI value is improving (column B is positive)
4. Fund is outperforming the dominant index (column C is positive)
5. Fund is above its 50-day moving average (column D is positive)
Beasley likes to begin with a conservative fund (in case he's wrong),
delaying further purchases until one or more aggressive funds have
crossed above 50 and into the top 10 percent of all funds being considered.
Purchases frequently are handled in three or four different transactions
over a period of a week or more, aimed at acquiring funds not subject to
the same market conditions.
Monitoring Your Position:
1. If Stochastics/RSI < 50 ... SELL
2. If Stochastics/RSI > 65 ... DO NOT SELL
3. Decision Zone: Stochastics/RSI above 50 but below 65
Trade up if the fund drops out of the top one-third of the family's
funds, as ranked by Stochastics/RSI ... or if minus signs appear
in any of the three middle columns.
The JimBat rankings are the combinations of the best rankings available to expose the best stock opportunity at this time. The combination of these two rankings should prove rewarding.
investnbest.netmegs.com
disclaimer: None of the stocks mentioned should be bought without you first doing your own 'due diligence'. It is very important for you to understand that the market can be volatile and past performance is no guarantee for future success. We suggest you seek a financial professional before you make any changes to your current investment strategies. All data and information is correct to the best of our knowledge at the time of publication. No guarantee or warranty is offered or implied. Do your homework |
