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):
TSM (Cramer promo last week; caution)
CY (still hard to believe)
ARST (very thin but major-vol breakout)
MNRO (very thin)
HANS (old Hans, believe it or not)
NCIT (very thin; need >25.73)
Honorable Mentions (most hail from a lower-ranked industry group):
ROST (reports thursday)