More about Telescan and a fab article in Smart Money:
There is an interesting article in April 1998 SMART MONEYabout about Technical Analysis and the past tendency of more conservative folks to see them as 'kooks and charlatans.' Technicians are now looked upon differently. These doubters seem to think that the 'technicians' are 'on to something' Technicians are being followed more widely and studied by university academicians.
But the main point I wanted to get across was there is a group of research teams out there that work for thousands of clients. One in particular is Ned Davis Research Group:
The writer describes how Ned Davis Research group operates:
Each week the first calculates what it calls techno-fundamental ratings for nearly 2,000 companies.(Editor's Note: techno fundamentalist sounds perfect explanation of what I try to do) One a 10-point scale, up to six points comes from technical factors like price trend and relative strength Another four points come from fundamentals. Over the past five years, stocks in the top 2.5 percent of the Davis universe have produced an averge annual return of 19.1% while stocks in the bottom 25 percent have gained only 4.6%..
The author then goes on to say he wanted to re-create the search of Ned Davis Research and did the following......
"With a little help from Telescan's ProSearch 5.0, and excellent technical-analysis tool ---I've come up with a list of stocks that meet many of NDR's criteria..
I limited my search to industries Davis likes best: local telephone companies, home builders, retailers and securities firms. I included only companies wuth a market value about $500 million, while looking for top-tier relative strength (price gains better than at least 80 percent of all stocks during the past 12 and 26 weeks) combined with a strong real-world performance (an earnings "surprise" in the most recent quarter and upward revisions in current estimates). Like NDR I weighted the technical factors a big higher than the fundamentals...
My 10 finalists appear in the accompanying table...Here is his list:
Alliance Capital (AC), AT Altell (AT), BLS Bell South, Champion Enterprises (CHB) GAP, (GPS), GDYS (Goodys Family Clothing) Legg Mason, Lennar Corp (Len) Pulte Corp. (PHM) and SBC Communications (SBC).." end of quote from Smart Money...
My scans are so amazingly similar to this columnist in Smart Money. I've had GPS,LEN,PHM, CHB, GDYS in just the last 6 months. LEN and SBC are in my watch list for today as well. The only difference is that I like to put on my own scans companies between 100 and 500 million capitalizations and even 50 to 100$ million to get the good 'growth' stocks among the bunch. So you see posters, our 'run of the mill' software.. that appears in a 'Run of the Mill' rag like Smart Money can be just the thing you need for your own analysis and stock picking. So all of you out there with TradeStation, MetaStock, Telescan.. Trading Expert, etc.. Don't throw them into the nearest trash can and enlist the benefit of the 'whiz kids'. But learn to be 'power users' of at least one major software package. Their power will amaze you.
jenna
marketgems.com
*excerpts of article from SMART MONEY reprinted courtesy of Hearst Communications and Dow Jones & Co. Inc... |
