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.

T.Kamada

If you have questions, feel free to mail them to me.