Jeff, I just noticed typo, should be 8% (not 85)gain for 7 & up since 1 Nov. As far as picking from the 30, I depend on the chart picture: bases, support, resistance, volume, 9/21/50 day moving averages, EPS/RS, accum/dist, etc. No single factor.
In reviewing new earnings (last 4 weeks)I liked the breakout of SALT as well as its 9 rating so I sold my TOTL and TAVA (lower rated stocks) and replaced with higher rated SALT. I try to buy 80% of stocks rated 6 or higher (7 or higher in tough market like we have right now)and only use 20% for "speculative stocks" rated 5 or less. On the other hand I cut 2/3 of DDIM at 13 1/4 because it was looking to breaking its lower trend line and looking a little dangerous. (Dropped to 10 1/2 the next day - whew!). It is still an 8 rated stock so I bought some back for myself and some for the model at 10 5/8 when it fell. I have been holding NMGC (8 rated) from 13 area or thereabouts and also OVRL (7 rating from $5). I am watching the chart for AKLM (8 rated) for a possible buy. Really holding off serious buying and upgrading until next Tuesday results of FOMC meeting.
Short answer to your question, there are several factors that go into decision to buy a stock rated 7 or higher, I just prefer the strong growth fundamentals to start with when I go shopping.
Bruce |
