Morning Steve, sorry for the delay...trying to help Jan out and a little behind, however the previous morning post regarding long and shorts are P&F ideas...
Normally I will look for picks going long in two ways, first is to screen for strong issues with RS in X's, a positive trend and on a pullback to support. Culling from this list, which can get quite large I'll look at the Valueline Timeliness ranking and other associated data...I really prefer VL 1 or 2's as they are very fluid and tend to move...
The second approach is to screen VL for Timeliness 1 and 2's, usually abut 400, and then narrow down the field by other means...such as EPS Growth rate vs PE, or Market cap and returns vs the past 1,4,13,and 26 weeks looking for a pattern of increasing returns...
I try to narrow down the field to less than 50 of which to look at the P&F charts and again pull those with nice charts that are on a pull back to support...
Then, comes the digging to see if there is any news or event that caused the issue to reciently pull back vs just plan old supply and demand(this may entail a call to the companies PR if any questions are left open)...if it's supply and demand, and the FA works...it's a buy recommendation with a target and a stop point.
Hope that helps,
Sorting back through last weeks data to review things before posting my picks for the contest...
Good trading and weekend,
Later
Preston |
