Saturday, June 23, 2007

What is a strong stock?

How does anyone define a strong stocks? Guess what, the definition differs from person to person based on how that stock is traded. Let's take a friend of mine, his definition of a strong stock is one that offers a favorable return over a long period. Another person would say a strong stock is one that offers a nice return in a single day. The two often differ.

I wanted to see which stock offered the best return last week while still meeting my efficiency requirements. That stock was FFHL. This stock would not have shown up on my scans since it's value fell considerable over the past month.

I changed my RSI scan to look for stocks with a value less than -0.58. If this were true, then the stock must also have a consolidation period of 10 days. If this is true and the stock shows signs of strength after 3 days of weakness, FFHL would have been a buy stock at the end of day 6/18/07, just in time to capture it's major move. I combined this scan with the previous scan, the results for end of day 6/18/07 are:

FFHL, FUWEI FILMS (HOLD (Google Yahoo Earnings Chart

This scan should be named to track it's progress. I'll name this one down but not out.

Fridays down but not out scan reveals:
ACLI, AMERICAN COMML LN (Google Yahoo Earnings Chart
BLUE, BLUE HOLDINGS INC (Google Yahoo Earnings Chart
CTIC, CELL THERAPEUTICS (Google Yahoo Earnings Chart
FDP, FRESH DEL MONTE P (Google Yahoo Earnings Chart
GOFH.OB, GOFISH CORPORATIO (Google Yahoo Earnings Chart
SGN, SIGNALIFE INC (Google Yahoo Earnings Chart
VSE, VERASUN ENERGY CO (Google Yahoo Earnings Chart

The 3 day strength scan reveals:
BFK, BLACKROCK MUN INC (Google Yahoo Earnings Chart
CLWT, EURO TECH HLDG CO (Google Yahoo Earnings Chart
KKD, KRISPY KREME DOUG (Google Yahoo Earnings Chart
TZOO, TRAVELZOO INC (Google Yahoo Earnings Chart
WASH, WASHINGTON TRUST (Google Yahoo Earnings Chart

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