Sunday, March 15, 2009

Updated Long List (eligible growth for strong tape)


[scroll below to skip the explanation...]

I ran various screens this weekend and the below list comprises my eligible longs for the coming week. You'll notice more names this week, with most of last weekend's Killer Rabbit List remaining live and on board; some of which saved my net-short ass considerably this past week.

For most of these, I need a strong tape to consider purchase or holding. Briefly, here is how I use the list: If a trading day is strong, or if it is mediocre but I am too short-weighted for the action at the time, then I look to the Industry Group Rankings* for that specific day. From the top-ranked groups in that session I then look to the eligible names below from the respective group(s); this then may generate a trade for just the day, but usually I set out as if it will be a swing trade at least (adding then on strength and reducing or ditching on weakness).

In other words, if I want to increase long exposure I look to the leadership of the day and quickly scan my names below in that day's leadership categories and quickly attack the stronger set-ups within.

I am working on a new short-name list, but it will be another day or two at least. If the market turns lower sooner rather than later then I will get it out asap.

I am currently market neutral, but the recent trend has been in increasing exposure long and reducing short. I am not opposed to getting aggressively short again as the market action deteriorates.

*Intraday Industry Group Rankings stem from Daily Graphs (subscription service), which includes intraday rankings of IBD's 197 industry groups (15 min delayed, unfortunately). I find the screen most beneficial 45-to-90 minutes into the session (there are less reversals at that point, yet it is still early enough to capture further strength from that day's tape).

This briefly describes how I go about adding names. This is in no way investment advice. If you want my advice - Don't do anything I do.

Updated Long List (eligible growth for strong tape):

Semi's-Manufacturing (this group still exploding in RS):
ALTR
SWKS
NETL
PMCS
DIOD
HITT (thin)
SIGM
TSM (Cramer promo last week; caution)
CY (still hard to believe)
SMTC
XLNX
MRVL
NVDA
SPIL
CREE
BRCM
MPWR

Medical-Genetics:
MYGN
LIFE

Medical-Generic Drugs:
TEVA
MYL
WPI

Medical-Products:
EW
STJ

Software-Medical:
SXCI (thin)
CERN
CPSI (thin)
MDRX

Software-Financials:
EPIQ (thin)
LFT (thin)
PEGA (thin)
ACIW
ADVS (thin)

Software-Security:
ARST (very thin but major-vol breakout)
CHKP (>21.94)
SNWL
MVSN

Retail-Discount:
BIG
FDO
DLTR

Retail-Auto/Parts:
ORLY
AZO
AAP
CPRT
MNRO (very thin)

Beverages-Softdrinks:
HANS (old Hans, believe it or not)

Tech-Services:
CTSH
ACS
NCIT (very thin; need >25.73)

Commercial Svcs-Healthcare:
HMSY
EMS (thin)

Oil/Gas-Refining:
WNR
UGP
IOC >21.27
EPB (thin)
NSH (thin)
WES (thin)
ALJ (thin)

Software-Enterprise:
BMC

Telecom Svcs:
TNDM (thin)

Telecom-Wireless Equip:
STAR

Retail-Leisure:
NFLX

Internet-Content:
SNDA
NTES

Internet-Network Solutions:
DRIV
ASIA
AKAM

Medical-Biotech:
SEPR >14.51
CRXL

Medical Svcs:
BEAT
MHS
DCR
GXDX (thin)

Commercial Schools:
LOPE (thin)
CECO
COCO >18.31

Bldng-Hvy Constr:
ACM >26.20
GVA

Retail-Restaurants:
PZZA
BKC

Honorable Mentions (most hail from a lower-ranked industry group):
GS
MS
ROST (reports thursday)
ARO
EPIQ (thin)
NICE
DLB
SOHU
NITE
TWGP
VNUS (thin)

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