Ed, like TA indicators, a small number of basic fundamental indicators will serve you as well as more "sophisticated" analysis.
Although I have my own "wrinkles" that I use, I basically set the screen to look for stocks with a 12-month RS of 85+, growing earnings and revenues at 25%+ quarterly (yoy), with ROE 17%+. Also a minimum daily volume of 100K, and a minimum stock price of $5/share. Waiting to buy a small portfolio of these stocks until the market (SP500 as proxy) goes through a decent correction (like to the 200-dema) can reduce your drawdowns, since CANSLIM-style stocks are typically high-beta. I hesitate to recommend any of IBD's books, since some of what they say (cut losses at 8%, for example) seems to reduce performance without reducing drawdowns. I've never been able to get O'Neill's concept of distribution days as a signal for market tops to work, either. Also, those books serve as marketing pieces for the subscription services that IBD sells, which rubs me the wrong way.:))) Luck, Sebastian --- In [email protected], "Ed Hoopes" <[EMAIL PROTECTED]> wrote: > > > Glad to hear about the MSN stock screener. > > I'm not confident of my fundamental screening skills so I rely on > others. Did you buy one of IBD's books to figure out how to do > CANSLIM screening? Title? > > I am saving the SS #10 lists and will wait a few months to see how > they perform on backtest. Basically any list works now because of the > rally that started last summer. > > Ed Hoopes > > > > > --- In [email protected], "sebastiandanconia" > sebastiandanconia@ wrote: > > > > Ed, I routinely use the MSN Deluxe Stock Screener to find high RS stocks > > meeting CANSLIM-style fundamental parameters. Free, fast, a > > comprehensive range of fundamental criteria available, and the > > pre-screening keeps my AB database down to an easy-to-manage size. > > > > > > S. > > > > --- In [email protected], "Ed Hoopes" <reefbreak_sd@> wrote: > > > > > > ValueLine is good, but it costs $$$, they have a long track record. I > > > use their #1 ranked list and layer TA on top of their list. I've been > > > doing it for several years now - definitely works. :) > > > > > > MSN MoneyCentral at this URL has a StockScouter list > > > http://moneycentral.msn.com/investor/StockRating/srsmain.asp? > > > Its FREE - many of the stocks on this list I find on the VL #1 list. > > > > > > After much backtesting, I have found that the IBD100 list at > > > www.investors.com has higher returns than the VL100 list( actually by > > > quite a bit ! ). I think mostly because they use a larger universe of > > > stocks. > > > > > > Ed Hoopes > > > > > > PS > > > If you use this method - you don't need to get too fancy with your TA > > > - just some moving averages work just fine for these fundamentally > > > strong stocks. > > > > > > > > > > > > --- In [email protected], "foginthehills" andrewdelin@ wrote: > > > > > > > > Hi there, > > > > > > > > Does anyone know of any US-based services that give you a list > > > > of "stocks with good fundamentals" ? > > > > > > > > In Australia a good source of 'sound stocks' is StockDoctor.com.au > > > > > > > > I am looking for a US service which can give me 5-star ratings for > > US > > > > stocks (small, mid and large cap). I have heard of www.valueline.com > > > > and wondered if there are any others? > > > > > > > > I want to use this as a screening step before I then apply technical > > > > analysis ideas. > > > > > > > > Any suggestions? > > > > > > > > thanks - > > > > > > > > > >
