If you’ve joined the Shareplanner Trading network, its inevitable that you’ve recognized I like to day trade, and swing trade predominantly based on technical analysis, with a small dose of emphasis on fundamentals.
My preferred technical set-ups aren’t fancy. In fact they are quite simple and predominately focused on B/O ( breakout ) plays, with my favorites being B/O of consolidation, B/O of ascending wedges …. ect. Occasionally I will buy on pullbacks to support, such as moving averages, and short breakdowns of support, but other than that its not rocket science.
The phrase “small dose of fundamentals” just represents that as part of my screens for technical set-ups, I will filter out stocks that non- profitable, have high debt/equity, astronomical P/E’s…ect to avoid getting crushed by events such as stock offering, and dilutive debt issuing.
However, my favorite ( and most profitable ) trades come from fundamental screens that happen to coincide with the technical set-ups I prefer to trades. ( Hint – Hint – They show up on both screens) These stocks I will usually swing trade with a longer horizon than just holding overnight or for a few days. Typically my entries/exits will be based solely on the technical, but because these fundamentally sound stocks, I am willing hold these type of positions for up to a couple weeks…depending on how the trade play out. Keep in mind if the B/O result in good profits , I will take the profits as if it was a shorter term trade. Here is my last list of stocks that met this criteria just a short while ago. Beyond the Technicals
Here are some stocks that meet this criteria now, and might see some profits in the coming weeks. The technical trade ( entry/exit) will be depicted on the chart with brief fundamental highlights in the paragraph preceding.
LDL – Highlight : Sales growth Q1 2011 +43% – Six consecutive quarterly increases. Forward P/E < 10.5. Book value per share = 9.94. Debt/Eq = 0.03 Projected EPS for 2011 = 0.37. Project EPS for 2012 = 1.14. Recent Quote from their CEO ” Our markets are robust, we saw market share increases in a number of products in both of our segments, and the majority of our product lines continue to produced strong returns. In addition, while growing net sales by 43% in Q1, we have been able to maintain the level of selling, general and administrative expenses, consistent 2010.”
ADGF – Highlights: Sales growth Q1 2011 +35% YOY. P/E = 8.7 ( Value play with those sales growth number) . Book/Share = 6.72 [ As March 31, 2010, total net assets book value increased to $51.7 million, or $6.72 per share (calculated as total assets less total liabilities divided by outstanding shares ] Very low debt with Debt/Eq = .06. They continue to expand internationally with international revenues increase +26% YOY.