Another first timer, thanks to RayW and I look forward to other Slopers submitting their thoughts, methodologies or any random tidbits they wish to share. Send to iggyslopefest at gmail dot com.
How to Build a Momo Stock Screen (Works Up or Down)
It’s all about the percentages, not about prices.
1. Using the FinViz.com screener first select Average Volume “Over 100K” per day.
This is to keep the bid/ask spreads as narrow as possible.
Greater volume means thinner B/A spreads, means a smaller fool’s premium paid to market maker for bid over ask.
Don’t just give away money on fat spreads of thinly traded stocks.
2. Select stock Price “Under $20.”
Most retail investors have finite limited amounts to invest, not unlimited or constantly replenished pools of cash to dip into.
A finite pool of resources can be most efficiently exploited with smaller units of measure or smaller stock prices.
Larger units = greater waste.
Smaller units = greater utility.
3. Select an up momo Pattern, “Channel Up.”
Some channel up patterns are strong, others weak.
For the strong channel up pattern you’ll be looking for those where the price is at the bottom of the channel, it’s support line, so that you may benefit from the momo up probability.
For those valuations already at the top resistance line put those on your watch list and wait for them to get back to the bottom support line before going long.
4. Select the best available Performance, “Year +50%.”
A strong up channel stock that’s only moved up 16% over a year is a opportunity cost loss when the same cash could have been deployed in a stock that’s moved up 60%.
Duhhh!
$SWC and $ETV both make pretty looking charts all by themselves…
… but put them together and BLAM!
Not so pretty now.
Alright, so you’ve got your screen results, hopefully there’s at least a few dozen, click on the Performance tab, double click on the Perf Year tab to sort top to bottom, I would only fool with something above 70%, then click the Charts tab.
Go hunting for something sensible.
$FCH looks lovely.
Good looking chart.
Price on the rising support line.
Current price is up almost 70% this year.
$1.26B market cap. is good. (I don’t like the chump change marcap stocks.)
That’s a good candidate for a momo up stock.
When $AA drops back to support it’ll be a good candidate.
I dunno about those two semiconductor stocks, $RFMD and $TQNT.
That whole biz eludes me so I tend to stay away from it.
Just dying to short something?
Run the same screen in reverse changing step 2 to “Over $10”, change step 3 to “Channel Down”, and step 4 to “Any.”
BAM! You got yourself a momo bear screen.
No big whup.
Now, here’s the beauty:
Make your screen, tailor it to your needs, select and copy the URL address, goto tinyurl.com, paste the URL, make a tiny URL, copy that, then paste it somewhere to keep.
Email draft works fine.
MS NotePad or MS TypePad on the desktop doesn’t take up much space.
I save a bunch of these on a Google Drive spreadsheet.
Just C&P or goto the link. Ta-da! Done.
No rebuilding.
It’s automagic!
RayW
