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Have you ever bought a stock seemingly loved by all, a can't miss winner that proceeded to tank right after your purchase? It's probably happened to us all more than once. My theory is these stocks are rated on past performance. At first they fly under the radar slowly building steam. They start to get some press, still nothing outstanding that makes them a must buy. Then the onslaught begins, another Google, Amazon, Netflix, get in on the ground floor before it's too late. By the time you read the last comment it is too late....for you. Wouldn't you be better off buying #500 on the way up than #1 on the way down?
Those of you familiar with Vectorvest know they rate stocks on a scale of 0-2.0 with 2.0 being perfect. Anything 1.0 or higher is usually a buy and better than the average stock. Their combo proprietary rating is called the VST or Value, Safety, Timing combined. Very few stocks get a rating above 1.50 and never have I seen a 1.7 VST rating. Currently of 8234 stocks they rate only 1 is above 1.50 with only 19 above 1.40.
Narrowing down the field to a reasonable number to consider purchasing they have a category called "Midas Touch Stocks". Currently numbering around 700 stocks, these are graphed to show a 10 day MA stop (proprietary) that is above a 65 day MA stop. Also they must have a 5 day MA RT that is higher than a 40 day MA RT showing the stock isn't weakening in price trend.
To further narrow the field I added 3 month EPS and 3 month Sales Growth trend parameters. All must be trending to new highs. As of March 28th these fields lowered the number of stocks to 59 possibilities. I check their progress each month.
The markets weren't so hot from March 28th to April 28th with lots of volatility the S&P 500 and the DJIA were almost unchanged during that period but the NASDAQ was down about 2%. To narrow the search further I screened for only those of the 59 stocks that were > than 98% of their price March 28th. 59% of the 59 stocks passed the test. Not bad but the % can be increased.
I noticed that stocks priced under $7 /share didn't hold up. Eliminate the under $7 stocks and the success rate improves to 66%.
Also the stocks with the highest VST scores, seemingly the best stocks, didn't do as well as those with lower scores to begin with. Eliminate the top 50% of stocks, those rated 1.12 to 1.39. The success rate climbs to 74%.
I'll keep tracking the original 59 stocks month by month to see if they continue behaving the same. A big upward or downward trend would change everything. Also I've got a new batch of stocks starting Monday, 33 of them, that are all over $7, and rated from 1.03 to 1.12. All the parameters on the graphs are based on 3 month time periods as to RT,MA, EPS, Sales, etc.
Any questions feel free to ask.
------------------------billy
Those of you familiar with Vectorvest know they rate stocks on a scale of 0-2.0 with 2.0 being perfect. Anything 1.0 or higher is usually a buy and better than the average stock. Their combo proprietary rating is called the VST or Value, Safety, Timing combined. Very few stocks get a rating above 1.50 and never have I seen a 1.7 VST rating. Currently of 8234 stocks they rate only 1 is above 1.50 with only 19 above 1.40.
Narrowing down the field to a reasonable number to consider purchasing they have a category called "Midas Touch Stocks". Currently numbering around 700 stocks, these are graphed to show a 10 day MA stop (proprietary) that is above a 65 day MA stop. Also they must have a 5 day MA RT that is higher than a 40 day MA RT showing the stock isn't weakening in price trend.
To further narrow the field I added 3 month EPS and 3 month Sales Growth trend parameters. All must be trending to new highs. As of March 28th these fields lowered the number of stocks to 59 possibilities. I check their progress each month.
The markets weren't so hot from March 28th to April 28th with lots of volatility the S&P 500 and the DJIA were almost unchanged during that period but the NASDAQ was down about 2%. To narrow the search further I screened for only those of the 59 stocks that were > than 98% of their price March 28th. 59% of the 59 stocks passed the test. Not bad but the % can be increased.
I noticed that stocks priced under $7 /share didn't hold up. Eliminate the under $7 stocks and the success rate improves to 66%.
Also the stocks with the highest VST scores, seemingly the best stocks, didn't do as well as those with lower scores to begin with. Eliminate the top 50% of stocks, those rated 1.12 to 1.39. The success rate climbs to 74%.
I'll keep tracking the original 59 stocks month by month to see if they continue behaving the same. A big upward or downward trend would change everything. Also I've got a new batch of stocks starting Monday, 33 of them, that are all over $7, and rated from 1.03 to 1.12. All the parameters on the graphs are based on 3 month time periods as to RT,MA, EPS, Sales, etc.
Any questions feel free to ask.
------------------------billy
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