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Screening for "strong" stocks
- Thread starter Cutten
- Start date
yes, IBD is very simple and to the point.
This site below has a daily scan of strong up-trending stocks for long, medium and short term with industry/sector information. It has down-trending scan too, useful if you're interested in shorting stocks.
http://www.turtlezilla.com/stock_scans
http://www.turtlezilla.com/stock_scans
Quote from Cutten:
Does anyone have a good method for stocks that hold up well during market corrections - other than just looking through loads of charts visually?
Ive just been looking for exactly the same thing. The Scanner on MSN Money seems to do a pretty good job.
I noticed Fidelity have a pretty useful research area too. You cna rank sectors and industries by performance.
Comparing the 3 month and the 1 month is a good idea. and add min market cap and min average volume limits to weed out the small guys and that should give you a pretty good starting point.
I noticed Fidelity have a pretty useful research area too. You cna rank sectors and industries by performance.
Comparing the 3 month and the 1 month is a good idea. and add min market cap and min average volume limits to weed out the small guys and that should give you a pretty good starting point.
Quote from fan27:
I am in the process of researching something similar to this.
Build a model based on buying strong stocks in strong groups in a strong market (ala Stan Weinstein...Secrets for profiting in bull and Bear markets).
The similarity is that you are not buying stocks in isolation, but take into account their relative strength to the broad market and their industry.
The challenge was to get the data organized correctly to do this.
The solution was to use Python (programing language) to access the HTML of this page containing all of the different stock groups:
http://biz.yahoo.com/ic/ind_index.html
Next, each industry URL was parsed from that page and then the stock symbols were obtained from the URLs by obtaining and parsing the URL's HTML.
The next task is to create composites for each industry group. I will then be able to compare each industry group composite against the S&P and then narrow down to individual stocks in prospective groups.
Does anyone know of any off the shelf software that can back test in this manner?
fan27
I wrote my own that does all that and quite a lot more - pretty much a complete set of technicals and fundamentals including sector and industry composition, composite charts, blah blah. All daily data and fundies downloaded or screen scraped from Yahoo finance. As previously said relative strength in a bull market is usually a winner. I find that the sharpe ratio of a stock is possibly a little better than raw relative strength.
I'm curently adding some John Ehlers type cycle analysis to the code, but I'm not yet convinced there is any real benefit.
As for finding stocks that will withstand something like the recent decline - well, good luck with that one.
One of the more interesting and usefull "fundamental" screening criteria is the percent by which a stock exceeded (or failed to meet) forecasts. Haven't been able to find a lot of use for ordinary valuation or growth measures suchas P/E or PEG. Price/Sales and Price/Cash Flow including Price/Cap Ex may be of some use.
IMHO, this exercise has taught me more about stock trading than I could have possibly gleaned from any other soucre. It also has undelined the truth that in stock screen (as in all trading) there is no holy grail - you need to adapt to the broad market conditions, and have reasonable market timing to be where you want. Furthermore screens that work fabulously well for extended periods, don't continue to do so indefinately. In fact they can become disasters.
I am interested in this also, mainly for a daytrading perspective.
To me, it seems by the time you trade the stock in motion, it is too late. (which is why a realtime scanner of 200% volume breakouts really doesnt work that well IMO.)
I would be really interested in how people collecty and narrow down a list of good daytrading candidates.
To me, it seems by the time you trade the stock in motion, it is too late. (which is why a realtime scanner of 200% volume breakouts really doesnt work that well IMO.)
I would be really interested in how people collecty and narrow down a list of good daytrading candidates.