Active Stock Screen: October 19th

The past month has seen a down-and-up which has taken markets back to where they started. At the end of the September the usual suspects topped the leading eight stocks ranked by Market Cap. What changed this month? Our active stock screen used the following criteria:

The number of qualifying stock dropped to 34. However, there was little change at the top.

Top dog is everyone's favourite, Apple (AAPL). Yesterday's earnings will put a dampner on today's trading, but the stock is likely to continue inside a newly formed rising channel and above $350 is additional support (not to mention the 200-day MA). Given the tumultuous past few weeks for Apple it's going to be interesting how the stock reacts going forward. A lengthy sideways consolidation - holding above $350 - would probably offer the best tonic. But for now, the stock is honoring a rising channel and trades are best held until this breaks.

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Active Screen - CANSLIM: Top 8 for March 3rd

There was another shuffle in the lineup of the top-8 stocks ranked by Market Cap. Gone was Southwestern Energy (SWN) and in came Vale S.A. (VALE). The current top 8 are: Apple (AAPL), Vale S.A. (VALE), Barrick Gold (ABX), Free McMoran (FCX), Baidu (BIDU), Research in Motion (RIMM), Cognizant Technlogy (CTSH), and Intuitive Surgical (ISRG). The Screener setup was as follows:


How have these stocks reacted to prior selling?

Apple (AAPL) came off its 50-day MA in reasonable form. Recovery volume was a little light in the 3-day sequence of gains. But it was good enough to create a bear trap (bullish). However, Tuesday's sell off was worrisome as it makes the push to maintain the sequence of higher highs and higher lows harder. Should the 50-day MA be tested before a break of $363 occurs then the favoured outcome is for a larger push down to the 200-day MA, currently at $293.



New boy, Vale S.A. (VALE) and its $170B Market Cap, has been trading around its 50-day MA, but is in a no-mans land between 50-day and 200-day MAs and is currently fighting to hold $34 support. Bears will look to a possible bearish head-and-shoulder pattern as marked by the blue neckline in the chart below. The stock has the lowest P/E of the eight at 10.38.



Next in line is Barrick Gold (ABX). The past week have seen a continuation of the gains worked off its 200-day MA. Trades just below the 2011 reaction high of $54 and is on course to make a challenge of $55.40.

Free McMoran (FCX) is a good example of troubles stocks have trading between 50-day and 200-day MAs. With the 50-day MA rolling down the intermediate term is firmly negative. There is support at $48 to defend and a 200-day MA at $44.58 to provide additional help.

Baidu (BIDU) dug in at $114 support but is shaping a small bearish pennant just above this price level. With the 50-day MA rising to meet falling prices there is an opportunity for a bear trap - where prices break lower from the pennant but quickly recover to move higher.



Research in Motion (RIMM) as been slowly edging higher without fuss. The 50-day MA sits at $62.77 and is the nearest support level to look too.

Cognizant Technology Solutions Corp (CTSH) is trading around its 50-day MA, but it's getting squeezed by the rising 50-day MA and $76 resistance. Which will break first?



Finally, Intuitive Surgical (ISRG) has continued its move into space created by the huge breakout gap (below $320 and above $296). The 50-day MA at $304.98 is a probable buy point for sideline money. The scale of the gap suggests the push below $320 won't last long. Will the broader market help or hinder bulls?

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Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.

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Active Screen: CANSLIM for February 2nd

Last week, the CANSLIM Active Screen I have been running introduced a new stock, Free McMoran (FCX), to the top 8 at the expense of Netflix (NFLX). Free McMoran (FCX) joined the other 7 stocks: Apple (AAPL), Baidu (BIDU), Research in Motion (RIMM), Celgene Corporation (CELG), Cognizant Technology Solutions (CTSH), Southwestern Energy (SWN), and Intuitive Surgical (ISRG) in our CANSLIM Results screen (ranked by Market Cap).


This week, we see the return of Netflix (NFLX), this time at the expense of Celgene Corporation (CELG).

So how have these stocks fared?

Free McMoran (FCX) recovered from its loss of the 50-day MA, leaving behind a potential bear trap. If it can push above its 20-day MA it will be nicely positioned to challenge 2011 highs of $61.35. The stock split 2:1 today.

Netflix's (NFLX) return follows a sizable gap higher, taking it to new multi-year highs. The convergence of 20-day and 50-day MAs provided a good point of support and is likely to do again should the breakout gap fill.



Apple (AAPL) has been pressuring short term resistance around $345. Since the Steve Jobs health scare volume sell off the subsequent upside volume has been light. But if it can break above $345 it will only be $3 away from a new all-time high, which is likely to bring money back in from the sidelines. 

Baidu (BIDU) gapped earlier this week to break above $115, but should bears make a return into the market then look for this to backfill towards $110 where it will offer value. Stops can go on a loss of $105. The previously stalled 50-day MA has started to push higher once more - ending the threat for a more prolonged decline. 



Research in Motion (RIMM) failed in its initial cup-and-handle breakout and is currently trading at 50-day MA support. December saw a "Golden Cross" between 50-day and 200-day MAs which should mark a long term shift towards bulls. The failed cup-and-handle breakout has left wider resistance - going from c$64 to a thicker $64-66 range. However, while it trades at its 50-day MA there is good value with a stop on a loss of $58. 

Cognizant Technology Solutions (CTSH) continued its rally after a successful test of its 50-day MA. So no change in the rally.

Southwestern Energy (SWN) hasn't quite got the kick I though it would. It is trading around $39 support but it hasn't yet acquired the mojo to push a test of $45.

Finally, Intuitive Surgical (ISRG), has done a great job in holding above $320 (the gap). I still think it will make a brief dip into the low $300s before continuing higher, but the fact it hasn't yet is a very bullish sign. Look for a challenge of $390 in the latter part of 2011.


So, one change to the list and a couple of stocks (BIDU and NFLX) trying to break from consolidations.

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Build a trading strategy in Zignals and potentially earn money too; download our Build a Trading Strategy PDF and get selling (and trading) today!


Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.

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Melding Technicals and Fundamentals into a Trading Strategy

One of the key features of our stock screener is the Fundamental Trading System aka Active Stock Screen. This unique feature exclusive to Zignals stock screener will notify you on a daily basis (by email) of stocks which meet (or no longer meet) the criteria of your screen.

In addition, the stocklist created by the Fundamental Trading System will update every day AND you can use this stocklist as a basis for an alert e.g. when price crosses above the 20-day MA or price drops to within 2% of a 50-day MA + so much more.

So you can find out when the strongest stocks based on fundamentals are exhibiting the strongest technicals.

So how is a Fundamental Trading System set up?



How can I use my Fundamental System to generate trade ideas?
With a Fundamental Trading System created you can create a Stock Alert which acts on the list of stocks qualifying under the filters of the Fundamental Trading System. In the following example an alert is created for price moving within 3% of the 200-day MA and a second for a price cross of the 20-day MA. A more detailed video on using alerts can be found here.



Each day an email is sent showing new stocks which meet the criteria of the scan and those which no longer qualify.

If you have any questions on using fundamental trading systems and/or alerts simply reply in the comment section.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too.

Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com. JOIN US TODAY - IT'S FREE!
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