Current Watch List

Here are 7 stocks that I have on my watch list.  These stocks have been flagged by my screener because of their technical strength and their high relative strength compared to the overall market.

The above charts are weekly charts, which is a good way to keep track of trending stocks.  I like ECL and AMGN in particular.

Hope everyone's having a great weekend.

TLT

Show Me the Value

Here are four stocks that turned up this week on my "Ben Graham" style value screen.  I run a handful of screens every couple of weeks to look for ideas and there seems to be some potential in a couple of these names.  The screen that I run is pretty basic and I use FINVIZ to run it.  This is an excellent website that offers up so many free tools that I can literally spend hours on it just playing around.  Check out the site if you haven't already..fyi, I have no affiliation with FINVIZ, I'm just an enthusiastic user of the site.


On to the good stuff.  Below, are some pictures and charts that give a brief rundown of the 4 stocks that are currently coming up on the screen.  Then at the bottom of this post is a screen shot of the settings that I use to run the screen.  If you're interested in this type of screen, just plug in the same values and then begin tweaking the values and filters.  Let me know if you find an interesting take on this screen.  Here are the current value candidates:

 My favorite on this screen is CRWS.  CRWS just broke out of a range and is exhibiting major strength.  A pullback to the 50 day moving average around $4.50 could provide a great long entry with a favorable risk/reward outlook.  ELNK is also worth keeping an eye on..it could be a good trade as well, it just needs to find some support after its recent sell off. 

As for the Value Screen itself.  It is a Graham style screen because it uses similar criteria and concepts that Graham endorsed.  These stocks have a relatively low Price/Book ratio and a low P/E.  They also have low Debt/Equity and positive earnings growth.  Furthermore, these stocks have a current ratio of at least 1.5.  The idea behind this type of screen is to find stocks that are cheap using the Price/Book and P/E but then qualifying the cheap stocks by making sure they have low debt and plenty of cash to meet their near term obligations.  Some stocks have a low P/E for a reason, and their P/Es continue to get lower and lower as the business gets closer and closer to having to shut down forever.  This is why Graham preached about the importance of the examining the "debt" side of the equation.

Here are the parameters that I use for the screen:

I hope everyone is having a great weekend!


TLT

Potential Trend Trade: ANW

Lately, I've been mainly focusing on Forex and Commodities because the stock market has been choppy but now that we're in the new year it's time to start paying more attention to stocks as traders come back from there holiday vacations. I've slightly revamped my stock screening and tracking approach and am now watching around 50 stocks at any given time. The main screen I use is set up to catch stocks that are either beginning or about to begin an uptrend. I will update the screen every other week and I will be keeping track of all the stock charts using Stockcharts.com's candle glance feature.

Candle glance is an excellent resource that allows you to monitor and review the charts of ten stocks on one screen. I enter all of the symbols from my stock screen into multiple candle glances and then book mark each set of 10 stocks to allow for easy daily and weekly monitoring.

One stock that is looking particularly good is ANW. In particular, I like that this stock has recently broken out of short term resistance after a rounding bottom formation and it has entered an uptrend. Also, I like that the 20 day ema is rising and is above the 50 day sma, indicating an uptrend. The On Balance Volume (OBV) is also trending up, which shows that shares of this stock are in an accumulation stage. Here is the chart:
As always, only time will tell with this stock, but at least for now it looks like there might be a promising trade with this stock.

Good luck out there.

TLT