Overview

Stocks with promising value & growth fundamentals can get some big volume.

Hitchhikers, as we define them here, use both technical & fundamental analysis.

This is about using technical analysis on stocks with good fundamentals.

The goal is to hop onto rising stocks preferred by institutional investors.

Results from fundamental screens are charted for detailed technical analysis.

Stocks with promising insider and institutional dealing should also be charted.

Trades should occur for the length of the trend. We favour this approach to investing.

 

Fundamental screening

Try screening for value, aggressive growth or turnaround criteria.

Try to whittle down to less than a dozen or so stocks from screening.

 

Institutional/insider actions

Investigate stocks that have had promising changes in insider dealings.

Look for promising changes in institutional ownership holdings.

Pick a handful of standouts for reviewing.

 

Review results

Set up your charts/technical analysis software for 3 month charts.

Set up your indicators such as volume, slow stochastic, MACD hist, momentum, RSI

Use a short simple moving average of 10 or 13 days.

Chart your screening results. Discard results under your moving average.

Stocks over it by one day or less should be assessed on the next day.

For the rest assess what your indicators are displaying.

Volume example: Does it increase with the up trend?

Slow stochastic example: Is there a favourable crossover?

 

Conclusion

Consider entering your trades if they are confirmed by 3-4 indicators.

Test & try to perfect this method before hand through virtual trading.

 

Punters

Overview

This is for investors who want to assess stock picks made by various 'experts'.

Experienced investors may start here and sort the good from the bad.

 

Buy signals & ratings

For USA, look at the stock selections generated by online TA tools.

Look at our broker recs links for USA, UK, Canada, India & Australia

 

Portfolio cherry picking

Have a look at our portolios made public section.

Find the best performing funds for USA, UK, Canada, India & Australia.

Find the stock holdings of the best funds: USA, UK, Canada, India & Australia.

 

Inside & institutional actions

See what the directors are doing from our insider links.

See what the big players are doing from our institutional links.

 

Earnings suprises

Check out what stocks have had recent earnings suprises.

Try screening for increased earnings forecasts & recent quarter surprises.

 

Tips

Sign up to online newsletters, most have free introductory periods.

Message Boards: Find the most discussed stocks from our forums page

 

Review results

Reduce the results with some or or all of the following criteria:

Chart results on 1,3,12 month charts. Online charts: USA, UK, Canada, India & Australia

Make sure the stocks are above a 10 or 13 day SMA for at least 2 days.

Look for obvious volume increases when the stock rises on the 1 month chart.

Quote the stocks & find their PEs, ensure they are lower than their sector averages.

Look at the debt equity ratios of your quoted stocks. The lower the better.

Make sure the stock has a dividend history, if it doesnt it is too speculative.

Stocks that fail these tests but have strong insider buying should be reconsidered.

Be wary of stocks that are threatened by China's manufacturing boom.

 

Conclusion

Do some thinking/research on why the stock is expected to perform.

Introduce some method; either technical analysis or follow tips/recs from proven performers.