Tuesday, May 15, 2007

IBD Top 10

Wandering around the YHOO financial site yesterday evening and I came across an article regarding the IBD Top 10 stocks. I'm always interested in such things and so I took a look and found these ten stocks listed.

ARGN
AZZ
BTJ
BWLD
CYNO
EDU
GSOL
MTOX
SYNL
TNH

Now it is possible that I missed the memo because I don't normally read the IBD propaganda but looking at the charts for each of these stocks led me to two thoughts - thought 1 - well. yes, they do deserve to be on a top 10 list, and, thought 2 - when were they put on the list?

For example let's take ARGN. Was it put on the top 10 list yesterday or on 4/30 which would have been in front of the current move or on 2/20 which would have caught a super move?



And how about BWLD - same questions - same dates -



Needless to say these are hot stocks but will they remain so? My thinking is if this is the first time they've been exposed to the public then there should be a bit of a rush to get on board even at this late date. You know how sheep-like the general retail crowd is - ring a bell and they'll follow anything - including the wolf.

Anyway - I put these 10 stocks in a portfolio and will check back every day for the next week or so and we'll see how well the "IBD Top 10 of 5/15" is doing. It is possible that this is a good screen for a quick in and out swing trade - you never know.

10 comments:

Bullish Jim said...

I still subscribe to the IBD 100 internet version, but probably not for much longer. I see a bunch of problems with the system. One of the problems is that the stock has to have a high relative strength to be on the list, meaning that it has already been performing really well for a time before it shows up. I see it as part of the IBD hype- "look at these high flying stocks!". Yeah, but let's look at the chart only since it showed up on the list.

Second, it's time consuming. You have to look at 100 charts to find a handful of stocks that are at a somewhat buyable point. I think there's an easier way to skin this cat. I'm working on a stockfetcher screen to pull stocks in a well defined uptrend that have pulled back to a major MA and have started to bounce. That's really all the IBD is good for in my opininion, and I think we can find a much easier way.

Marlyn Trades said...

That's the exact point I'm trying to make with this post Jim - thanks for taking time to comment on it. Many people eat the hype and reap misery afterwards.

But - see my next post for something that will amaze and astound.

GovtMule said...

Marilyn, recently I read about a system that uses the IBD 200 to screen for stocks....

* STEP 1: Obtain Investor Business Daily for Thursday for $1.25
* STEP 2: Go to page B5. Look at the list of IBD's Top 200 Composite Stocks
* STEP 3: Put this list in watchlist.
* STEP 4: Everyday identify companies from this list which had price increase of 2%, minimum volume for the day of 100000 and volume for the day is above yesterdays volume.If you are using TC2007 use this scan-
( 100 * (C - C1) / C1) >= 2 AND V >= 1000 AND V > V1 or ( 100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
* STEP 5: Buy next day with 1% risk
* STEP 6: Trail with a stop
* STEP 7: Enjoy your profits

Here it is in more detail, backtesting yields good results for the ones I have tested........

http://stockbee.blogspot.com/2007/01/how-to-beat-market-for-125-per-week_11.html

Marlyn Trades said...

That is probably a good way to play the IBD list - see also my next post on it - apparently we don't need no stinkin' IBD.

Anonymous said...

And we don't need no stinkin' bodges, either (Belushi!). Great stuff.

Philip

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