Sunday, April 05, 2009
Updated Long List (eligible growth for strong tape)
[scroll below to skip the explanation...]
The below list comprises my eligible longs for the coming week, based on a compilation of various relative strength screens. I have removed most names which are either very thin and/or have a very high degree of short interest and/or poor fundamentals.
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 eliminating 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.
*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.
I will be working on a new working list for shorts, which should post in a day or two, depending on the strength of the market.
Updated Long List (eligible growth for strong tape):
CY (reports Apr 16)
UTEK >12.80; thin
AMAT (liquid, but lower RS)
KLAC (liquid, but lower RS)
DRI (12% shorts)
CBRL (18% shorts)
BJRI (15% shorts)
CEC (9.5% shorts)
EPE >23.20; thin
MNRO (thin, but volume increasing)
AN (16% shorts)
OTEX (13% shorts)
SGR (reports 8Apr, aftr close)
BKE (11% shorts)
Comml Svcs-Market Rsrch:
Medical-Genetics/Biotech (groups remain highly ranked, but dropping now in score):
ISIS (10% short)
THRX (13% short)
Honorable Mentions (most hail from a lower-ranked industry group):