The take away from yesterday’s scan of equities using the heuristics:
1. Identify whether the security is over its long-term moving average (240-250).
2. Identify the Relative Strength Factor, it being an ETF or use the SCTR trend line.
3. Using the Slow Stochastics (5,1), contextualize the “money wave” parameters at 80< & 20> , as signals.
4. Use the ATR to step up stop losses and measure the move being priced in by the options market.
5. Use high volume securities only.
6. Gatekeeping through a review of a bottom-up narrative within the larger top-down view of the economy as a whole. Are correlation risks present in the underlying?
I would like to use a Percentage Price Oscillator (PPO) to compensate for some of the head fakes, and whipsaw actions produced by the Slow Stochastic. Moreover, the companies being looked at with a more present eye are those where the fundamental picture aligns with technical opportunities presented on the charts.
I will be adding to this throughout the day as I go through them alphabetically and systematically.
$ABBV : AbbieVie, Inc.
$ACTA : ACTUA Corp
Operating Margin %: Declined Actua Corp operating margin has been in 5-year decline. The average rate of decline per year is -20.5%.
Piotroski F-Score: High Piotroski F-Score of 7 is 7, indicating very healthy situation.
PE Ratio: Close to 10-year low Actua Corp stock PE Ratio (=0.44) is close to 10-year low of 0.44