We started using Investors Business Daily back in 1986 to find “winning stock picks” consistently. Although we’ve refined the process, adding some bells and whistles, our simple 3 step method works in bull and bear markets.
- Check the market trend and breadth (stocks up vs. stocks down)
- Check “stocks on the move” – MarketSmith List
- Analyze fundamental and technical data for best candidates
Winning Stocks Picks – Follow The Steps
Checking the market trend is pretty straight forward. We want the markets to provide a tailwind if you’re bullish and hold stocks back if you’re bearish. MarketSmith has all of this information on the home page.
With this quick review complete, you can move on to market breadth and confirm that the number of stocks moving up on volume is beating the stocks that are moving down on volume.
3:1 or higher is a good indication that breadth is improving.
Next, we want to review MarketSmith’s exclusive stocks in step 2.
On Monday, semiconductors showed up in masse, telling us they might be in-play this week.
This is the article we wrote that highlighted the stocks below. These stocks were found using the method above. All of them moved higher this week.
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