The Big Bet Stocks Philosophy
"While a fundamental analyst may be able to properly evaluate the economics underlying a stock, I do not believe they can predict how the masses will process this same information.
Ultimately it is the dollar-weighted collective opinion of all market participants that determines whether a stock goes up or down.
This consensus is revealed by analyzing price.”
Quote attributed Mark Abraham, from Michael W. Covel's Trend Following
For the past several years I’ve used an institutional investor screen to identify stocks that offered the potential for significant market gains.
Roughly three of every ten stocks that successfully passed through our primary screen in 2009 eventually developed trends for gains of 50% or more.
The problem with those enviable results is that not one of those 146 trends was identified before – or even during - the evolution of those trends. For investors, that represented the same profit potential as reading one of those charts that lists the best performing stocks for the previous year.
I continue to use the Institutional Investment screen to identify stocks with trending potential.
In mid-year 2010 I developed an additional screen that would help investors to identify tomorrow’s winning stocks . . . today.
Every stock in that database is priced weekly to identify stocks that have registered a specified percentage increase in market value, this week’s closing price versus previous week’s closing prices.
By identifying stocks with measurable and repetitive weekly percentage increases in closing prices we can capture stocks that offer the potential to evolve into significant upward trends.
All potential Trend candidates are made available to Members when they have been identified – after the market closes at the end of every week.
