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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (58300)	8/28/1999 8:14:00 PM
From: lee kramer	Read Replies (2) \| Respond to of 120523

Kendall: A fine query regarding scanning. Now that I'm getting comfortable with my laptop, first computer I've owned (been using WEBTV) I think I'm ready to enter a few 'parameters' that I look for and let the computer help me do what I do each week by going manually through 2,000 charts to find the two or three best. But how to begin? What software? Any suggestions by anyone would be greatly appreciated. (Lee)

To: kendall harmon who wrote (58300)	8/28/1999 8:46:00 PM
From: Jenna	Respond to of 120523

NTOP..Outrageously Overbought. The criteria are from ProSearch, and once I have the 'portfolio' to track I usually put them in an autoscan to track with Telescan's Investor's Platform or Technifilter, or the Exploration of Metastock 6.5... I only use Technifilter for P & F breakouts and early alerts. Sometimes they already have or are close to some breakout of sorts and they go on the watch list. Those scans are a simplification. I use more criteria different 'weights' and some in 'display mode' to 'dissect' the stock. I didn't want to be too boring, so I left out some of the volume indicators, technical indicators, performance indicators etc. I am experimenting with absolute values which can narrow down the field, although you end up with 4 or 5 stocks. The cool thing is you can 'manufacture' any chart pattern you want by using performance criteria of the past 1,2,3,4,days, 1 week, 2, 3 or 4 months 13 weeks, 26 etc, together with any indicator value, for example stochastics no more than 65, yet MACD weekly of minimum 55 to maximum 72 but MACD daily of maximum 65 etc.. You want a volatility of 75, you can do that also with a intraday range of anything 1 to 10. You get your IPO's there, (add a very high revenue over 100% but a earnings growth that is presently negative but next year/quarter projected to be positive)... Eventually you narrow down the criteria that work the most and end up with 4 or 5 scans. What do you do when no matter 'technically overbought' the stock is, it still surges? For that I would have a very high 10 day moving average of say 136 (36% above the 10 day moving average) as the maximum and you get the really outrageously overbought ones . One of the most overbought I've ever seen is NTOP with a 10 moving average value of 10MA = 163.3 (63% above its 10 day ma), a 20 day MA of 230 (130% above the 20 day MA!). PHCM not too shabby either with a 20 day moving average of 21MA = 140.1 (40% above 21 day MA).. Before NTOP the most I've seen was BRCX which had a 10 day MA of 156.. so to find overbought stocks I'd use probably a maximum value of 136.. (36% above the MA)... If I don't get anything I lower the value. These are so outrageous that if I was braver I'd probably short NTOP and PHCM for a few weeks, but I am not 'practiced' in longer term shorts. If these two traded options I'd be getting some options puts further out. Of course you are looking for shorting opportunities with these scans, not going long. For going long you find one that has a high 30 and 20 MA but a 'normal 10 day MA' of say 97 (i.e. KIDE has a 10 MA of 97 which is good, a 21MA = 119.1 ( 94th percentile) meaning KIDE can go either way) It doesn't work all the time, of course you get days when the whole sector is down, but if you follow them more than one day, they usually hit more often than not.