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Screen of the Week

3 Days Up: Price and Volume

November 04, 2008 | Comments: 0
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CISG | ENSG | MCS | OSG | VOLC
Highlighted stocks include Cninsure, Inc. (CISG - Snapshot Report), Ensign Group (ENSG - Snapshot Report), Marcus Corp. (MCS - Snapshot Report), Overseas Shipholding Group, Inc. (OSG - Analyst Report) and Volcano Corp. (VOLC - Analyst Report).

With the market going back and forth and up and down lately, here's a simple screen for finding stocks on the move, NOW!!!

I use this screen regularly to find what stocks are hot and what stocks are not. And what stocks may be gathering momentum.

This screen looks for stocks that have shown 3 days worth of increasing prices accompanied by 3 days worth of increasing volume.

I have found that stocks meeting these criteria have a tendency to keep on moving in that same direction. Why? Because price has a tendency to follow volume.

For instance, if a stock is falling on increasing volume, it could be a sign that people are getting out and that new shorts (bets that a stock will go down) are being put on.

Likewise, if a stock is moving higher on increased volume, it can be a sign that new buyers are coming in (and maybe with more conviction) and some short sellers may be giving up (buying back their bets for lower prices).

The parameters for this are easy.

  • Current Price > Price 1 Day Ago
  • Price 1 Day Ago > Price 2 Days Ago
  • Price 2 Days Ago > Price 3 Days Ago
  • Current Volume > Volume 1 Day Ago
  • Volume 1 Day Ago > Volume 2 Days Ago
  • Volume 2 Days Ago > Volume 3 Days Ago

And I'm applying these parameters to stocks that >= $5 and have a minimum of at least 100,000 shares traded daily.

I love this one. Largely because, instead of focusing on just the biggest gainers (which often are 1 day events -– that have been missed), this spots price momentum AND accumulation. Very bullish signs.

Here are a few of the stocks it picked for Tuesday, 11/4/08:

CISG - Snapshot Report Cninsure, Inc.
ENSG - Snapshot Report Ensign Group
MCS - Snapshot Report Marcus Corp.
OSG - Analyst Report Overseas Shipholding Group, Inc.
VOLC - Analyst Report Volcano Corp.

This screen is available in the Research Wizard by going to:

Screen
Open Screen Definition
Double-click: the SoW folder
Select: sow_3_days_up_price_vol

Use the Research Wizard to run this screen on your own. Or any of the other proven, profitable strategies that come with the program.

And learn how to create and test your own winning trading strategies that tell you when to buy and when to sell. It's easy to do. Sign up now for your 2 week FREE trial to the Research Wizard and start making better decisions today.

Click here for your free trial

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.