How to Build a JBTFD Screen (Works Up or Down)
It’s all about the percentages, not about prices.
1. Using the FinViz.com screener …
2. 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.
3. Select stock Price “Over $20.” We don’t care about stupid little penny popcorn stocks that zoom up 200% from 5¢ to 15¢. This eliminates that trash, keeps us in the higher market cap. stocks where there’s more stability.
4. Select the best available Performance, “Year +100%.” A strong channel up stock that’s only moved 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.
We’re just looking for pure momo JBTFD plays, not even a momo buy.
5. Now put in something that’s dropped – but only recently! Performance “Week Down.” Don’t care how far, little or large, we can see that on the chart soon enough.
But what if a stock has gone up 200%, has dropped 30%, and had yet another bad week last week?! That is definitely NOT a JBTFD momo stock! That’s trash and I don’t wanna waste time looking over those. Lettuce eliminate them… !
6. Select 52-Week High/Low “0-10% Below High.” High could have been last week or last quarter. Fine, but we’ve weeded out some more trash with this step.
7. Goto the Performance tab, select “Perf Year” to sort top to bottom. Then go hunting for something sensible.
Result: http://tinyurl.com/pn3ctfv
Looks good:
LNG http://finviz.com/quote.ashx?t=LNG&ty=c&ta=1&p=d&b=1
SWKS http://finviz.com/quote.ashx?t=swks&ty=c&ta=1&p=d
LUV http://finviz.com/quote.ashx?t=LNG&ty=c&ta=1&p=d&b=1
REX market cap. is rather tiny, no way to tell WTH is going to happen with it.
http://finviz.com/quote.ashx?t=REX&ty=c&ta=1&p=d&b=1
Just dying to short something? Run the same screen in reverse changing step 4 to “Year -30%”, change step 5 to “Week Up”, and step 5 to “30% or more below.” BAM! You got yourself a momo bear “Just Short The Effing Pop” 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!
Now, here’s the caveat: You still gotta pay attention to these things. Past performance does not guarantee future performance. The economic environment changes. As do industry and company specific events. There is no “fire it and forget it.” But this should point you in the right direction.
