UK Stocks and ETFs - Watchlist and Discussion

RE: UK Stocks - Watchlist and Discussion

(02-12-2014, 05:50 PM)isatrader Wrote:
(02-12-2014, 05:31 PM)malaguti Wrote: Hi ISA, I'm very new to Weinsteins method but been a long term admirer from the T2W thread. A question on some of your watchlist, and I go back to Weinstein's book and something he doesn't explicitly say but strongly hints that you wouldn't consider a buy unless the overall market AND the sector were in alignment.
You might argue that the FTSE100 and 300 are in a phase 3 (A)?
Whats your view on this, or is the sector more than enough for you?

thanks

Hi malaguti, good to see you on here. In answer to your question, you are correct that you should generally only be looking to go long when the market and sector are in Stages 1 and 2 and should avoid when they are in Stages 3 and 4, except for in exceptional circumstances when a stock is showing A+ characteristics.

With regards to the UK market specifically, the FTSE 100 is in Stage 3, which would make you want to avoid the large caps, however the FTSE 250 is in Stage 2B still and the AIM is much earlier in Stage 2, and so you'll probably have noticed from the majority of the watchlist stocks on here recently that they have mostly been small caps and AIM stocks and only the occasional large cap that's showing exceptional relative strength and volume.

I view the sector part of the method as a secondary consideration as like the indexes it's an average of the stocks and so lags early in the Stage 2 move. For example when a sector recovers and breakouts into early Stage 2A, the leaders in the sector will have already broken out into Stage 2 weeks or months before, and they are the stocks we are most interested in, and so I tend make sure the broad market overall trend is ok, using the weight of evidence from the market breadth data, and then find stocks with the characteristics that we are looking for i.e. price pattern, volume, relative performance and no near term resistance, and then look at the sector later on when I do deeper research on a stock that I find interesting, as the sector part is more of a confirmation I find and gives you confidence to add to your position as it progresses through a Stage 2 advance. But that's just my preference after years of working with the method as as an investor I'm looking to get into moves early in Stage 2A, whereas the traders are more interested in continuation moves already in Stage 2, and so can wait for sector confirmation.

With regards to the watchlist stocks that I post each day on here. All I'm looking for is to highlight the stocks that are showing the characteristics that we look for in the stocks themselves at or near breakout points, so that members can then do deeper research themselves, and have the information available for all three parts of the method - i.e. checking the major charts that I update weekly in the Stan Weinstein Stage Analysis Thread. Then in the same thread I also post the relative performance tables for the FTSE 350 sectors, so that they can check the sector strength as well.

So I've tried to made the site so that we have everything necessary for the method in one place and can share ideas and help each other learn.

I hope that helps.

Thanks so much ISA, very comprehensive answer. I thought 250 was similar to 100 in its staging but I'll look again
look forward to posting more and contributing

Reply


Messages In This Thread
FTSE AIM All Share index - AXX - by isatrader - 01-08-2014, 02:46 AM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-28-2014, 10:33 AM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-28-2014, 07:50 PM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-29-2014, 02:53 AM
Sharehunter.com February Article - by isatrader - 02-08-2014, 10:11 AM
UK FTSE 350 Mining Sector - by isatrader - 07-28-2014, 11:13 AM
UK FTSE 350 Sectors - by isatrader - 08-10-2014, 08:44 PM
UK FTSE 350 Sectors - by isatrader - 01-05-2015, 12:07 AM
UK Advance Decline Line chart - by isatrader - 01-31-2016, 11:34 AM
FRES.L - Stage 1B breakout - by isatrader - 02-04-2016, 07:16 PM
UK Advance Decline Line chart - by isatrader - 02-27-2016, 12:57 AM
PFC.L - Stage 1 - by isatrader - 03-03-2016, 02:01 PM
POLY.L - Stage 2A - by isatrader - 03-05-2016, 09:59 AM
UK Advance Decline Line chart - by isatrader - 03-05-2016, 11:25 PM
UK Advance Decline Line chart - by isatrader - 05-08-2016, 09:55 AM
FRES.L - by isatrader - 04-11-2016, 03:55 PM
Copper stocks - by isatrader - 01-08-2017, 01:13 AM
Cyber Security - by isatrader - 01-14-2017, 11:32 AM
FTSE AIM All Share index - AXX - by isatrader - 01-08-2014, 02:46 AM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-28-2014, 10:33 AM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-28-2014, 07:50 PM
RE: UK Stocks - Watchlist and Discussion - by Tom - 01-29-2014, 02:53 AM
Sharehunter.com February Article - by isatrader - 02-08-2014, 10:11 AM
RE: UK Stocks - Watchlist and Discussion - by malaguti - 02-12-2014, 06:48 PM
OT: a bit - European cement - by pcabc - 04-06-2014, 08:54 PM

Forum Jump:


Users browsing this thread: 5 Guest(s)