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This screen identifies stocks
with strong price charts and with equally strong fundamentals. To qualify, a
stock must either be breaking out to the upside, or in an existing, but strengthening
uptrend. On the fundamental side, a stock must be
recording accelerating earnings
growth, strong profitability, and meet additional fundamental requirements
that I've found work well for identifying winning stocks.
As
you'll see when you look at the list; out of 8,000 or so listed stocks,
only a handful pass muster.
When
to Sell?
Some rockets fizzle on the launching pad. So it
pays to admit your mistakes and cut your losses early if a rocket
goes the wrong way. I suggest selling any stock that drops 10% or more
from your buy price. Once a hot stock has moved up, sell when it drops below
its 50-day moving average.
Market Direction
Buying hot stocks can be risky business. The strategy
works best in a strong market. Since most rockets
are
small-cap, I use the Russell 2000 index to represent the market, and
give an “okay to buy” signal when the index is above its 50-day
moving average.
Here
are the current Rockets
.
Market
Direction:
Condition
Green - Go For It
Data as of 5/9/08
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