Sunday, September 20, 2009

Test blo for top stock blog: Beat the market --You can do it!

I really believe that any investor using a little experience, knowledge, discipline, common sense and a basic knowledge of technical analysis can consistently beat the market as measured by the S&P 500 Index. This is the premise behind my blog Financial Tides. I've been using this theory on my portfolios on Marketocracy for several years and I have consistently beat the market.

Over the next few weeks I'll explain how I pick my stocks and we'll build a portfolio together. I'll use the exact same methodology I use on my Marketocracy New High Portfolio that has been measured over the last 4 1/2 years and has beaten the market by 59% for that period. At the end of a year you will see that you can beat the market using this methodology

We will build a portfolio of around 10 stocks and the first to be added to the portfolio is Emeritus Corp --ESC and I'll explain why [more].

I begin by using BarChart's new high/low list and sort for frequency. I use the over 100K shares traded per day column and sort those. I try to find stocks that have had at least 10 new highs over the last 20 trading sessions. I start with the top 10 and see how they stack up on BarChart's 13 technical analysis indicators and only consider those that score BUY on at least 80% of the 5 short term indicators.

This is where the experience sets in, I look at the charts and try to get a feel of consistent upward movement. This week I felt good about Emeritus Corp ESC.

ESC is 100% BUY on Barchart's TA indicators. It made 14 new highs in the last 20 trading sessions including 5 new highs in the last 5 trading sessions and has had a 70% return over the last 65 trading sessions.

Let's add it to the portfolio and remove if it ever drops below its 50 day moving average.

Please share you comments below or email me at FinancialTides@gmail.com

Disclosure: I hold no positions in ESC at the time of publication

1 comment:

  1. Hi Jim,
    I'd like to thank you for your new blog. The first time I read about your strategy was during the 2008 MSN strategylab... You were one of the few who could keep "head-up" in this bloody market (with Disciplined Investor Andrew Horowitz)... Your strategy was so "easy" to follow, that I didn't follow it... Result: I lost half of my hardly earned money... Now, I just remember this as a good lesson...
    Although I still think that "valuation" should be the prime reason to invest in a stock, I admit that Your Method works in ANY kind of market...
    Congratulation... Looking forward to see&follow your new portfolio.
    Jo

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