Stock Screens

13May07

It’s been a while since I woke up in the middle of the night to see the China markets down over 6%.  I have to admit it looks like a bubble.  Over 200,000 new brokerage accounts are open daily in China and the Shanghai CompositeIndex continues to make new highs in the face of what seems to be irrational exhuberance.  College students are opening $400 accounts in hopes riding the wave.  The facts are global markets still remain liquid and US markets are in bull mode with strength overseas.

Markets continue to push higher and so does my account.  I still need to break $500k by June and we could be on track for $1m by year’s end.  I’m still searching for a homerun play (100% or more gainer) and I could have few call plays into expiry this week.  After Thursday’s crack and Friday’s pop on a dovish PPI report, there’s a good chance that we will see more of a squeeze higher into options expiry Friday.  Tuesday’s CPI# could set the trend which will confirm the trends this week.  89% of S&P 500 companies have reported and have outperformed estimates by over 3%.  67% have been above, 21% below, and 12% in line.  Strong fundamentals and tame inflation numbers will continue to set the bullish tone for markets. 

Trading large size positions are getting more difficult, but I believe when you’re right on direction it obviously helps.  For me personally, the best way to find winning trades in a bull market is to use a stock screen.  I personally use a fundamental screen to find stocks that will find bids as markets turn up.  Then I use technical analysis to time them as far as entries and exits.  A few good free online screening tools are MSN Stock Screener and Yahoo Stock Screener.  A few of my homerun picks could be BA, GOOG, BIDU, MCHP, NYX, ADBE. 

The bottom line is you have to understand both and learn to use them together. 

Less then 5 Months. $30k starting, +291,838, +973%

 

Filed under: ADBE, BA, BIDU, CPI, China, GOOG, MCHP, NYX, Nasdaq, Options Trading, PPI, charts, investing, options, options expiry, stock screens   |  Leave a Comment