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Strategies & Market Trends : Tom and Craig's Stock Scans -- Ignore unavailable to you. Want to Upgrade?

To: Craig K who wrote (4)	8/19/1999 10:05:00 PM
From: Tom Allinder	Read Replies (2) \| Respond to of 154

A few words about my own investment/trading style and how I screen stocks: I believe strongly in charts... the chart generally tells where the company is headed. In other words... the stock price will advance AHEAD of developments with the company. I like fundamentals too... but fundies are not terribly important. It will not keep me from buying a stock if it has a great looking chart. Having said the above, Here is what I am looking for in a stock: 1. Within 15% of a 52 week high and uptrending on the chart. Being at or near a high eliminates a lot of overhead resistance. I will not buy a stock with a downtrending chart regardless of what the news is. Why? Too many sellers waiting to get out even for the stock to move rapidly back up. Why do charts uptrend with no fundies anyhow? Answers can be: 1. good earnings coming. 2. A new product or service coming. 3. A takeover in the offing. There are many more reasons. 2. A small float so that when buying comes in, the stock will move. This obviously works against one as well as they can sell off in a quick hurry. I like excitement though. I will take a low float stock with limited liquidity, a great story and huge potential over a liquid, mega-float behemoth any time. 3. I prefer stocks under $10, but will dabble in anything up to $100 a share. I do OTCBB as well. My favorites are $3-7 NASDAQ stocks with low floats and an emerging story in a fast group. I am not beyond buying a sub dime stock that will move either. Nothing off limits if it looks good on the chart. 4. Finally, I try to keep my variables limited to keep things simple and uncomplicated. I run many different variables and look at all the stocks... If a chart looks good, I check fundies and share data, recent news. If it looks very interesting, I will call the company and their PR firm and squeeze additional information out of them. Tom