Pending update of our Master Stalk Sheet
Per my post #305, we are constantly updating our sector model (http://www.intradayinvestments.com/intraday_sectormap.gif). Version 1.3 is about to come out, so if you have any creative or constructive ideas or suggestions, now is a good time to submit them. That includes new candidate stocks for the sectors. Some of the changes we're introducing in v1.3 include:
- Stocks in each column (sector) will be grouped by sub-sector... a great way to find quick sympathy plays and/or to look for divergences, reactions. e.g. in the Semiconductor sector we'll have the memory companies, CPU companies, mixed-signal/datacomm, etc. In the Banking sector we'll have sub-sectors for the regionals, super-banks, etc. I've been studying the Bios a bit and they're going to make for some interesting groupings. Retail will fall into some natural clusters, as will Software, Internets, etc. This will really help with the bigger sectors and pack a lot more information into the spreadsheet. The usefulness of the subsectors are myraid, for one thing if something happens intraday (e.g. (hypothetically), "QCOM executive just said they're finally giving up on CDMA";) then you'd know which symbols to punch up immediately as possible slower-moving sympathy or opposing plays.
- "Telco Hardware" OEMs merged into "Networkers" sector. We'll then be grouping/color-coding the Networking sector into a few subsectors including: Enterprise/switching, Optical access&switching, Highend Routers, Cellular hardware -- things that tend to trade in sympathy especially when there is related news.
- Telco Service will be subsectored into Inter-LATA voice (IXC) voice carriers, ILECs, Cellular carriers, etc.
- Integrating Telco Service and the Networkers opens up a column. It will be used for "Small Caps", a collection of heavily-traded issues (under $5) that are suitable for the room. We are open for nominations! This week we played EXDS aggressively from the "high one's"... note the volume that someone accumulated a couple of days ago -- maybe some well-capitalized daytrader is trying to "buy the company"! <g>
- A subsheet will be added for each sector with the trader-members covering that sector, and key fundamental on each stock. This will include, for example: current P/E, 20-day avg volume, the float, EPS trailing & forward EPS, sales & earnings growth rates, the issue's Beta, current liabilities & current assets (from the Balance sheet), key products/services/technologies, primary competitors, and key issues/news/events facing and/or weighing on the company in it's business.
We'll be able to flush out all this information over the next couple of months on every single stock across every sector of the stalk sheet, which with the help of the volunteer 'sector squadron' analysts (trader-members) who, along with myself, Deron & Ed will give us a much greater understanding of each issue and each sector. Most importantly, it will give us a much better foundation for understanding and interpreting how/why institutional investors may react to any particular news/event/price shock, and to have a better feel for the likely persistency of any moves.
Imagine all the benefits that can be deroved from having a 'total handle' on the key business metrics & issues, of every single stock that you trade! It's not "huge", but it IS enough to add up to a significant component of a trading "edge". 95% of our trading decision are still technically-based; however this will help us to screen/filter more intelligently and accurately, pulling us into a lot of sectors/situations/trades that we would otherwise miss. It also allows us to gain a better understanding of what is likely to happen next in each of the sectors/issues that we trade. And, if you delve into it you'll be amazed at how much more interesting it makes reading IBD, the WSJ, or Barrons (and yes - even listening to the drone on CNBC is enhanced! -- some great Biotech features this week!)
Steve Bell
General Partner
Intraday Investments
intradayinvestments.com |
