Tuesday, September 16, 2008

My Plan Of Action

My SA software fired off 33 picks today. I don't plan on buying 33 stocks, so I must put my filtering process into work. I began by looking at which stocks were below 20 on the slow stochastic %K. This quickly narrowed my picks down to 5. For me, I need to narrow it down to about 2 since I only have about 10k to invest (including margin).

This is the only program, by the way, that I am actually OK with using a margin account. The 5 I was left with were C, IRM, LNCR, OMC, and VAR. Next thing I need to do is open up Yahoo Finance and check the scoops. Citigroup (C) said their exposure to Lehman was "modest."

Hhmmmm..... just mentioning Lehman soured me. During these very chaotics times, anything matters and that tid bit of information was very useful. Normally standard this depth of research isn't required. Scratch 1. Iron Mountain (IRM) is in business services. Headlines are good - new facility, great financial and 4 buy recommendations from analysts. I'll keep this one.

Lincare Holdings (LNCR) is in home health care. Wow, this company looks really good - keeper No. 2. Omnicom Group (OMC) is in advertising. No bad news, good financials - keeper No. 3. Finally, Varian Medical Systems (VAR) is self explanitory. Another good looking company! Keeper No. 4.

I'd like to buy all 4 of these oversold gems, but best of all, my Stock Assault 2.0 software fired them off as buys. Anyway, this is just an example of how I processed through 33 picks to get 4 I was comfortable with.

Honestly, there were actually 10 or more picks that looked as good, but fell just a few points shy of my 20 stochastic mark. Well, let's look for a strong market this week. Good luck to all.

- Roger

3 comments:

  1. Roger,

    Great blog. A question: when do you buy once you get the SA signal? Do you buy around market open or wait til the morning spike dies a bit? thanks, Phil

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  2. Roger,

    When do you usually place your order after you get the SA signal? Market open or a little bit afterwards? great blog, thanks for the tips.

    Phil

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  3. @Phil
    I definitely wait until the opening spike has occured. Sometimes I may wait as long as an hour after the market opens. I may not even buy the same day if the market starts heading south in a big way.

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