SOS called it
Fundamental Based Scans
It is based on CANSLIM methodology for "O'Neil" type stocks.
Some quotes
FOOLISH 8 M
The original Foolish 8 strategy uses eight criteria to look for profitable and rapidly growing small companies with strong price momentum. The methodology is partly built on the premise that the lack of coverage and interest in small-cap companies presents a better opportunity to locate undiscovered, attractive investment candidates.
1. Revenues: $500 million or less
2. Earnings and sales growth: 25% or greater
3. Net profit margin: 7% or greater
4. Daily dollar volume: $1 million-$25 million
5. Insider holdings: 10% or greater
6. Share price: $7 or greater
7. Relative strength: 90 or greater
8. Operating cash flow: a positive number
Here's how I created it in TC2K:
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SOS also had a blog for his
Slingshot Anticipation Scan
some quotes.
A friend of mine has shown me the value of using Rate of Change to identify compression points in a stock. We talked about combining a Slingshot in the current bar with a ROC of +/- 2 in the preceding bar. He personally also conditions a ROC of >15 in the prior 21 bars but since my coding knowledge is more limited, I went after the concept it in a slightly different way by using a weekly RSI > 51 for now. I'll likely experiment some more, but I like what I see from this scan so far.
Criteria:
Price = personal preference
Liquidity is true = minv3.1 >=55000 -- Personal preference
Slingshot = c > xavgh4 and c1 < xavgh4.1 and c2 < xavgh4.2 and c3 < xavgh4.3
ROC (my work around TC2k Limitations) = ((C1/c6)-1) *100
Wilder RSI > 51 weekly -- Self explanatory, but subject to experimentation.
Mark Minevrini Notes
Mark Minevrini
SEPA
1. Identify Trend template
2. Fundamental Scan-- growth Sales / margins, relative strength
3. Leadership
4. Manual Review
Influenced by Weinstein
Stage 1 characteristics:
Goal is not to buy cheapest price-- its to buy the right price-- we want stocks that move quickly after you buy them.
Transition from 1 to 2:
Stage 2 will show volume--- should always be a rally of 25-30% before you conclude Stage 2 has begun.
Transition Criteria
Series of higher lows, above 150 and 200 ema
Weekly Charts
Large volume spikes on up weeks
in contrast to low volume pull backs.
Stage 2 Characteristics:
>40Week and 40 week ema in uptrend
Staircase pattern-- clear uptrend
Stage 2/ 3 transition -- VOLATILITY increases
Major price break on volume
200 DMA flattens
Stage 4: capitulation --
price breaks
Conclusion-- Big money is identifying when stage 2 begins
Ride the waves
Within a trend (tide) there will be short term oscillation (waves)
There can be basing 5-25 weeks in a stage 2
Base count-- should stair case up a stage 2, stock typically has 3 to 5 bases.
You want to get in when institutional money is getting in.
When the leader sneezes the industry catches a cold
Look for contraction areas:
SEPA
1. Identify Trend template
2. Fundamental Scan-- growth Sales / margins, relative strength
3. Leadership
4. Manual Review
Influenced by Weinstein
- Every super stock starts big performance in stage 2.
Avoid buying stage 1 no matter how good the fundamentals may be.
Stage 1 characteristics:
- -- price oscillates around 40 week / 200 dma
- Can last years
Goal is not to buy cheapest price-- its to buy the right price-- we want stocks that move quickly after you buy them.
Transition from 1 to 2:
Stage 2 will show volume--- should always be a rally of 25-30% before you conclude Stage 2 has begun.
Transition Criteria
Series of higher lows, above 150 and 200 ema
Weekly Charts
Large volume spikes on up weeks
in contrast to low volume pull backs.
Stage 2 Characteristics:
>40Week and 40 week ema in uptrend
Staircase pattern-- clear uptrend
Stage 2/ 3 transition -- VOLATILITY increases
Major price break on volume
200 DMA flattens
Stage 4: capitulation --
price breaks
Conclusion-- Big money is identifying when stage 2 begins
Ride the waves
Within a trend (tide) there will be short term oscillation (waves)
There can be basing 5-25 weeks in a stage 2
Base count-- should stair case up a stage 2, stock typically has 3 to 5 bases.
You want to get in when institutional money is getting in.
When the leader sneezes the industry catches a cold
Look for contraction areas:
Dr. Wish Notes
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The Trading Websites I subscribe to and Why
he mentioned the website Stephen Stewart's Picture of Power. I found it very useful and implemented.
The other one is Eric Muathe. Muathe.com . The method is similar as Stephen's, which looks for weekly momentum in terms of weekly RSI over 68 with volume surge.
Muathe's technique for chasing extended stocks is brilliant and was eye opening for me.
- On a daily chart a stock must have 2 days of rest
- On a weekly Breakout 2 weeks of rest
- On a monthly 1 week of rest
My process for combining the StockBee Momo Burst With Muathe Ultimate Breakout:
- Start with the Scan for 3 year RSI highs (Muathe uses 34 bars as that is the fibonacci number). I usually get between 150-350 stocks.
- I then sort by highest MDT (on the daily) This tells me which stocks are currently enjoying the highest momentum AND a 3-year RSI high.
- Look at charts for weekly breakouts and set alerts. It's a weekly B/o if has had at least 2 weeks of rest.
- Use the StockBee Momo Burst setup for an entry on a daily chart. I will not take a weekly breakout if the stock is extended on a daily chart. Although my sample size is still limited, I believe that the best trades result when a tight daily range triggers both a momo burst and a week 1 breakout.
- Stock's Risk management works better for me as I feel the %5-8% rule is too nondescript. On a cheap stock I can have a 20% stop and still only risk .25 of my account depending on position sizing. That I understand.
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