Double trouble candidates - 30 Oct 2007

ALD - http://uk.moneycentral.msn.com/investor/quotes/quotes.asp?symbol=GB:ALD

- 6 months charts is showing V formation or cup and handle

- News: Miner Albidon said its joint venture partner African Energy Resources has commenced a 4,000m drilling programme at the Chisebuka uranium prospect in the Kariba Valley to evaluate high-grade surface uranium mineralisation. The group said initial programme comprising a minimum of 40 drill holes has been planned. To date, 13 drill holes have been completed for 1,091m.
“This programme will complement the ongoing Chirundu JV drill programmes at Njame and Gwabe, for which resource estimates will be available in November and December, respectively,” it added.

LCG http://uk.moneycentral.msn.com/investor/quotes/quotes.asp?Symbol=LCG

- New contract deal with Betfair

- Chart show smooth rise

- Profit margin 27% plus

VEL http://uk.moneycentral.msn.com/investor/quotes/quotes.asp?Symbol=VEL

- rise in profit by 63% over last year. Expanding operation in Asia.

Market Monitor 26 October 2007

Monthly ratios are flashing caution. Lets see how market opens on Monday. Watch this space.

Doube trouble candidate 24 Oct

Double trouble candidate based based on EOD data for 24th OCT is

EDD - http://moneycentral.msn.com/detail/stock_quote?Symbol=GB%3AEDD

Triggers.
1. Earnings report
2. Profits on the rise

Double Trouble

This is one of the methods I use to filter the stocks. The concept has been designed by Pradeep Bonde. As I am on the learning curve, he recomended to master this first as this is one of the simplest concept. You need historic data for last 1 year to run this scan. You can use any scanning software. I use Amibroker.

Here is what Double Trouble about.

1. Filter all the stocks which have doubled in last 1 year (260 trading days).
2. From this universe filter out stocks which are up 4% on high volume.
3. Filter out stocks which are withn 25% range of their highest price in last one year.
4. Reasearch these stocks for earnings or any breaking news. Look for one month weaknes.
5. Buy on next open.

There are high chances that these stocks will make upto 1500% move.

Market Monitor Philosophy

Market Monitor is an early indicator of any major change in trend. It also indicates a safe period to trade. The system has been designed by Pradeep Bonde. Please visit www.stockbee.biz or http://stockbee.blogspot.com for more information.

The colour scheme is self explanatory itself. Green indicates safe period, orange is cautious and red is alert zone. Avoid any trading during the alert period.

The major indicator is 65 days. Any reversal in this ratio indicates start of bull or bear phase. Stocks down 25% in 65 days below 200 indicates a major correction around the corner. Stocks up 25% in 65 days below 200 indicates start of bear phase. Above 200 and ratio > 1 indicates bull phase.

Number of stocks up 4% up or down above 50 indicates high volatility.

Number of stocks up 50% above 20 indicates a correction around the corner.

Market Monitor

I have created a excel sheet in google and have added it on left side. I will update the Market Monitor stats in that on daily basis.

As of today the stats show market is quite stable. There is lot of buying and selling happening. keep an eye on 65 days ratio. Any reversal in this ratio will signal turn in market direction.

Currently minor correction is happening but I am hoping this is forming a base for another rally.

Miners are having a day!

On 25th Sep, I recommended BHP Billiton(BLT.L). The stock was around 1700p. It has risen 11% since then. Also other miners
like Vendanta(VED.L) are doing well. They had a 4% breakout today. Looking at the charts these show a uptrend. Vedanta seems to have broken
the resistance line and will form new support line. Buy!

Other stock to watch for is Vodafone(VOD.L). It had a 4% breakout today.

Market Monitor

Market monitor is a system which will give early indication of where the money is flowing. It will have following bull/bear ratios

4% plus breakout on high volume
4% plus down on high volume

Stocks up 25% plus in 65 days
Stocks down 25% plus in 65 days

Stocks up 50% plus in a month
Stocks down 50% plus in a month

Stocks up 25% plus in a month
Stocks down 25% plus in a month

Stocks up 100% plus in 260 days
Stocks up 200% plus in 260 days

Currently I am developing the system in Amibroker to pull these figures out for me on a daily basis. I will put these figures in an Excel sheet and put it on the flog. I will explain later how to interpret these ratios. The principles behind Market Monitor are similar to one mentioned on Stockbee which follow US stock market.

Raj