Richard, thanks for responding.
This message provides some further ideas on the fundamental factors I'm presently trying to come up with. Let's say I'm going to attempt to trade the following basic TA system:
MACD(12,26,9) crossing up through zero
Stochastics(12,3) crossing up through 20
Price appears to have bottomed short-term and now heading up
The probability is fairly high that a 'fundamentally standard' stock will continue higher, passing through the above system TA points.
Fundamentally 'weaker' stocks, however, are less inclined to continue the ascent, will probably just head-fake up, but then continue on to lower levels.
Some fundamental criteria have to be used to weed out the 'standard' from the 'weaker' companies. And this is what I am trying to arrive at presently, and have sought your help and the help of others.
time frame: 5 trading days or less, in and out
long or short: buying long only
% return goal: at least 7-15% over one of the five trading days
risk tolerance and volatility: fairly risk-averse
exchange-nyse-amex-nasdaq-bb: primarily nasdaq
industry preference: don't see as important with the particular system that is primarily based on TA
price range of stocks focused on: $1 to $10, as these seem to have the greatest percentage short-term movement.
There are about 4000 stocks in my grand list. Using fundamental criteria, I'd like to whittle this down to 2000 or less, eliminating at least half. Then I'd like to locate only those meeting the specific TA system requirements.
Do you have any further hints about the fundamental criteria I might use to weed out the 'weaker' companies?
Thanks,
Nicholas |
