The ACD Method

Quote from Quon:



Here's a pretty easy way to keep track of the market without needing to track the "ten-thousand-things" as Lao Tse would say. Track the sector ETFs that are most significant to you. Some use 9, others use 16, you can use as many or few as you like. This way you're only tracking the number line of 9-16 instruments at the end of each day, (takes just a few minutes at the close). Then scout the top sector for the strongest individual stocks. I posted earlier today that the XLB is rocking with a +13. So I go shopping in the XLB. I like FCX, DD, DOW, PX right now. I do the work to see who's the strongest there, and that's who I look to buy. Maybe a few look really good, maybe only one stands out, (like BMY Oct - Dec).

Just be sure you know what affects each. We stayed clear of FCX today because it reports in the AM. DOW, DD, and PX are no doubt currently buoyed by the drop in Nat Gas, (watch Nat Gas if you trade chemicals). So on and so forth.
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I do something very similar. Macro ACD to find a sector to focus on. I use FINVIZ to scan the sector to find few choice stocks (dozens of filters available). Then i look at a price relative chart to guage strength or weakness. So now i have the strongest stock in the strongest sector that meets my filter requirements (or weakest stock, weakest sector). Then I watch intra day ACD action for the entry. This process gives me a bigger picture across sectors but only a handful of things to watch during the day.
 
FCX beat, but down. Looking for a pullback to the weekly OR, (confirmed weekly A up yesterday).

F above weekly A up. XLF above Monthly.
 
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