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Magic Charts Newsletter
March 4th, 2002 |
This issue includes...
1) "How is the sample portfolio ?"
2) "How to pick the right stock"
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1) "How is the sample portfolio ?"
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The sample portfolio is on 0.3% loss. First we had the dip
last month due to fear of more companies like Enron with
financial figure approved by certain accountancy firms.
Then we suffered from the fact that Racing Champions
announced that it would put an other 1.5 Million shares on
the market above the current 3 Million which caused the price
to drop below the 20% under it's highest point.
And third Ameristar Casinos ended it's long rally and
dropped below the 20% line.
The up side is that by selling
these stocks we got more
money to invest in new runner ups. See our next chapter how
we selected the new stocks.
There is a screen shot at the bottom of this page
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2) "How to pick the right stock"
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First we take all the stocks we have, that is 1511 stocks from USA Complete, USA Mutual funds and EURO Base modules. Then we press on the 'Winners' button and select the list with the results over 3 months by pressing the '3 Months' button. All the charts are now sorted in the order of there gain over the last 3 months, the first is Kanakaris Communications, second is Crown Cork etc. So if we click on the Kanakaris name, we jump to the Kanakaris chart and if we select the next chart with the buttons at the right hand bottomside we get Crown Cork, third is Halifax, Fourth Danka and so on. We select the charts we like by selecting the squire in front of the 'Candidate' group and we continue until we have selected enough nice charts to choose from. We are looking for 5 new stocks so after 18 we stopped. |
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Now we are going to select just the 18 we marked 'Candidate' by pressing the 'Find' button, mark the squire in front of the 'Candidate' group and ENTER on the keyboard. We now have only the 18 candidate stocks which we are going to sort by there performance over the last month by pressing the 'Winners' button again and select '1 Month' By sorting them on there 1 month performance we see which stock does best in both the last 3 months and last month. |
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We selected 'Harmony Gold Mining' for its very strong chart.
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| 'Silgan Holdings' shows a very strong escape, had some pretty big corrections in the past, but the latest pattern shows a nice rise. |  |
| 'Owens-Illinois', very strong chart, in a hurry to make us money :-) |  |
| 'LvL Medical Groupe' a French stock which does very well, and we wanted to show that our portfolios can handle both US$ and euros together and we try to sell more euro modules in the process. |  |
| We like the 'Pulte corp' chart for its narrow channel in which it is climbing, so we expect this one to be a steady climber for a while. |  |
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The other charts look promising to, except for the 'Pulaski savings bank' which apparently got a jump of about 80% in a very short period (take over bid?) but did almost nothing the last month (0.3%) so we don't think this one is going to make us money in the near future. |
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If you don't already have a subscription to the Magic Charts
and you would like to see all the charts mentioned above,
subscribe to a FREE one month trial to the Magic Charts!
Download the demo from our website at:
http://www.magiccharts.com/download
After installation, it will generate a base code with which
you can subscribe to the free trail.
Or even better, get a real subscription to the Magic Charts,
and get one month for free!
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Copyright 1998-2002 by Magic Charts. All rights reserved.
This document may not be copied in part or full without
express written permission from the publisher.
Trading in stocks involves risk. You can lose money. We are
not making recommendations to buy or sell any stock. We share
our views about how to trade stock.
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Magic Charts sample portfolio per 03-01-2002
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