Use TradingMarkets Stock Scanner To Spot Winners
One question I receive
very often from our members is: “How do we scan for stocks?” In fact,
Dave Landry has
excellent lessons on this subject. Let me show you one example of how to
scan for buy candidates.
I do not normally trade stocks under $5 a share. It is a lot easier for a $50
stock to move 50 cents than a $2 stock. It’s depend on your trading styles, but
it is beneficial to trade stocks higher than $45 a share. Of course, liquidity
is important, too. I want stocks with the daily average volume of 500,000 or
higher.
The ADX determines the strength of your stock trend. I like stocks with the ADX
reading of 30 or higher. In addition to the ADX, you should pay attention to the
RS (relative strength) as well. If a stock has a 90 RS reading, it means this
stock belongs to the top 10%. I like stocks with the 3-month RS of 90 or higher.
One more thing I want to add is that the stocks should be trading above all
three moving averages (20-, 50-, and 200-day)
Below you can see the result of my scan.
| Date | Symbol | Exchange | Stock Name |  Price |
 CHG |
50 DAV (00) |
% of AV |
EPR |
RS12 |
RS6 |
RS3 |
ADX |
DMI |
50 DMA |
CT/B 25% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/22/04 | BG |
NYSE | BUNGE LIMITED | $ 56.39 | $ 0.23 | 7897 | 80% | 71 | 91 | 88 | 91 | 55 | U | > | * |
| 12/22/04 | BZH |
NYSE | BEAZER HOMES USA, INC. |
$ 144.93 | $ 0.97 | 5929 | 66% | 61 | 80 | 92 | 91 | 51 | U | > | * |
| 12/22/04 | CME |
NYSE | CHICAGO MERCANTILE EXCHANGE HO |
$ 221.30 | $ 1.05 | 7010 | 39% | 72 | 96 | 94 | 93 | 36 | U | > | * |
| 12/22/04 | ERTS |
NASDAQ | ELECTRONIC ARTS INC. | $ 61.70 | $ 0.40 | 58578 | 67% | 52 | 77 | 85 | 94 | 44 | U | > | * |
| 12/22/04 | FFIV |
NASDAQ | F5 NETWORKS INC | $ 46.98 | $ -0.02 | 13452 | 36% | 98 | 94 | 95 | 94 | 38 | U | > | * |
| 12/22/04 | HBC |
NYSE | HSBC HOLDINGS PLC ADS | $ 85.10 | $ 0.31 | 6707 | 66% | 63 | 95 | 98 | 96 | 63 | U | > | T |
| 12/22/04 | MGG |
NYSE | MGM MIRAGE INC. | $ 70.36 | $ 0.36 | 10104 | 67% | 72 | 92 | 89 | 95 | 48 | U | > | * |
| 12/22/04 | MON |
NYSE | MONSANTO CO | $ 54.10 | $ 0.60 | 19531 | 217% | * | 94 | 92 | 95 | 69 | U | > | B |
| 12/22/04 | NCR |
NYSE | NCR CORPORATION | $ 69.66 | $ 0.66 | 10359 | 65% | 82 | 90 | 89 | 93 | 54 | U | > | * |
| 12/22/04 | NFI |
NYSE | NOVASTAR FINANCIAL, INC. |
$ 55.71 | $ 0.00 | 7970 | 64% | 24 | 81 | 92 | 91 | 45 | U | > | * |
| 12/22/04 | OSIP |
NASDAQ | OSI PHARMACEUTICALS, INC. |
$ 72.28 | $ -0.67 | 30146 | 63% | * | 92 | 58 | 97 | 44 | U | > | * |
| 12/22/04 | PENN |
NASDAQ | PENN NATIONAL GAMING, INC. |
$ 59.97 | $ 4.35 | 6991 | 317% | 69 | 96 | 95 | 94 | 34 | U | > | T |
| 12/22/04 | PHS |
NYSE | PACIFICARE HEALTH SYSTEMS, INC |
$ 56.00 | $ -0.07 | 11578 | 72% | 39 | 98 | 93 | 96 | 63 | U | > | * |
| 12/22/04 | SEPR |
NASDAQ | SEPRACOR, INC. | $ 59.01 | $ -0.04 | 23704 | 54% | * | 95 | 77 | 94 | 33 | U | > | T |
| 12/22/04 | TOL |
NYSE | TOLL BROTHERS INC | $ 66.41 | $ 0.81 | 13823 | 89% | 64 | 88 | 95 | 96 | 56 | U | > | * |
| 12/22/04 | WYNN |
NASDAQ | WYNN RESORTS LTD. | $ 67.73 | $ 0.88 | 15351 | 108% | * | 96 | 93 | 96 | 35 | U | > | * |
| 12/22/04 | X |
NYSE | UNITED STATES STEEL CORPORATIO |
$ 53.15 | $ -0.25 | 43104 | 90% | 86 | 89 | 94 | 91 | 32 | U | > | B |
Experiment it, and invent your own scan!
Happy holidays.
If you have questions, feel free to mail them to me.