StockCiphering.Com The Financial Ad Trader

Tutorial - Part 2: Daily Usage  (Back to Part 1)

The main start page of any week's set of stock screens (see sample) is like a table of contents, with links to bring you to the various specific screens. The number of screens may seem overwhelming at first, so we want to give you some suggestions as to how you can most effectively use an any given day. All the activities below include a link to an actual sample screen from several weeks ago for your review.

What's Happening Today? (See a sample)
The DayWatch screen is updated periodically during the trading day to give you some insight as to what's happening as the day unfolds. Note the Advance/Decline Statistics for the Database as a whole and for individual Business Categories. It will also list specific stocks that are either up or down at least 2% on at least 1.5x average volume, so you can see which categories/stocks are doing the best/worst for the day.

The Week's Breakouts (See a sample)
The Express Checkout: Breakouts screen consists of stocks that have broken out of bases at least 4 weeks long during the week. There is a section for 52-Week Breakouts, 6-Month Breakouts, and 3-Month Breakouts. Since this is an Express Checkout screen, only those stocks with a 1-Year Performance Ranking of 70 and above are shown. Look for stocks that broke out on heavy volume. Perhaps you may want to buy the stock right away if it is not too overextended from its base or you can watch it over the next several days for a possible pullback.

Stocks Setting Up for a Possible Breakout (See a sample)
The Express Checkout: Setups and Consolidations screen is pretty much all you need to find stocks that are setting up for a potential breakout. It consists of stocks forming Cup-With-Handle formations, Jack-In-The-Box and Coiled Spring stocks that are consolidating quietly, stocks that are very close to doing a bullish MACD crossover (what we call Potential Bulls), and Early Risers whose Relative Strength Line has hit new highs. Since this is an Express Checkout screen, only those stocks with a 1-Year Performance Ranking of 70 and above are shown. Note that there is a table for stocks within 15% of their 52-Week Highs and another table for stocks lower in their bases... 16-40% below their highs.

Business Categories That Are Hot (And Not) This Week (See a sample)
The Business Category Overview screen will give you a general picture of which Business Categories have made the composite biggest advances or declines during the week. You can click on any Business Category to see the stocks within the group.

Best-Performing Stocks This Week (See a sample)
The Cream of the Crop: Week Performance Rank screen lists stocks that are ranked 80 and above in their Week Performance Ranking. Remember, this ranking is based on both price and volume, so you will find strong stocks here. The table is grouped by Business Category so that the categories with the most stocks are at the top.

Stocks Hitting New Highs This Week (See a sample)
Look at the Cream of the Crop: New Highs screen to see stocks and Business Categories that are leading the market in terms of achieving new 52-Week Highs. The Business Categories with the most stocks hitting new are at the top of the table. This shows all stocks hitting new highs, not just those that broke out to new highs from a base at least 4 weeks long (which you saw already in the Express Checkout: Breakouts screen).

What Stocks Are the Market Leaders? (See a sample)
This is not necessarily a daily activity, but by reviewing the Cream of the Crop: 1-Year Performance Rank screen, you'll know which stocks are the hottest based on their 1-Year Performance Ranking. Only stocks with a rank of 80 or above are shown, and remember that this ranking is based on both price and volume, so these stocks represent true buying interest. As you review the charts of these stocks, you'll inevitably come across some that are setting up for a possible breakout, but you'll also see some that have already broken out and have been rocketing for some weeks. For that latter group, good buying candidates may be the ones that have come back to touch their 20-EMA (Exponential Moving Average) lines. Very strong stocks will usually ride along the top of this line. Also look for stocks that have come back to gently touch their 50-EMA line, since this line tends to represent long-term institutional buying support.

Stocks With Fundamental Growth Potential (Undiscovered Growth Sample and Positive Growth Sample)
This is also not necessarily a daily activity, but if you're coming more from the fundamental side in finding stocks, it would be a good idea to periodically review both the Undiscovered Growth and Positive Growth stocks via their respective Cream of the Crop screens. This will keep you abreast of stocks that have passed all the rigorous tests to become Positive Growth and Undiscovered Growth stocks. Only stocks with a 1-Year Performance Ranking of 70 and above appear in theses lists, so you'll find only the strongest stocks here. Review these lists especially during and after earnings season, since some new stocks may appear that have upped their guidance for future quarters.

Those are really all the screens you need to be on top of the market and to find good candidates. Other stock screens that we generate are mostly for curiosity's sake or for more in-depth research into certain setups. Remember, the Express Checkout screens only consist of stocks that have a 1-Year Performance Ranking of 70 or above. You may want to see other stocks with lower rankings that may be setting up low in their bases, which you could find in the Cups With Handle or Potential Bulls screens, for example. If you want to find stocks that are good candidates from the short side, screens like the Potential Bears, Dead-Again Bears, and Gravity Defiers may interest you.

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