Does anyone have a good method for stocks that hold up well during market corrections - other than just looking through loads of charts visually?
Yes, I do that with TC2000; I create multiple formulas for % price change for desired periods, then rank the lists.
I use the "loads of charts" method along with a TI scan. You need to be able to filter out stocks that are still up on the day, but not way off of their highs (unless that's what you are looking for).
My method is to look through etf's and indices first to try to narrow it down, but it's still far from optimal. Someone's got it automated, but their not showing.
1) Look for "defensive" issues. 2) Look for stocks at the high-end of their trading range in multiple time-frames (%R). 3) Look for "top performing" sectors and focus on the strongest issues within them. 4) Create an unpaid "internship" for a student to do your grunt work. You'll have more applicants than you'll know what to do with, especially if you live close to a "good" school.
Cutten, I think the MSN Screener does a very good job with two of its screening criteria: (1) Relative strength (2) price percentage gain over period http://moneycentral.msn.com/investor/finder/customstocks.asp This is the link to the basic HTML screener. I think they also have a java version hidden somewhere on that web site, which has a wider range of screening criteria.
I would use the relative strength and compare sector/industry returns from 3 month period to 1 month period. You can use a 6 month period, but I doubt it will help much. Note which stocks are fading out of popularity from the 3 month to 1 month. Use relative strength to help narrow them down.
======================= IBD[investors.com] top 100 barchart.com top 100 barchart.com sectors Mercedes Benz =strong Brand. DAI =strong stock off its lows, but very weak sector. Even if US gov [IBD note] does impliment old auto buy back & sector spikes up ??.Plus, noticed in my area , more auto dealers out of business, than any other type of business .
I am in the process of researching something similar to this. Build a model based on buying strong stocks in strong groups in a strong market (ala Stan Weinstein...Secrets for profiting in bull and Bear markets). The similarity is that you are not buying stocks in isolation, but take into account their relative strength to the broad market and their industry. The challenge was to get the data organized correctly to do this. The solution was to use Python (programing language) to access the HTML of this page containing all of the different stock groups: http://biz.yahoo.com/ic/ind_index.html Next, each industry URL was parsed from that page and then the stock symbols were obtained from the URLs by obtaining and parsing the URL's HTML. The next task is to create composites for each industry group. I will then be able to compare each industry group composite against the S&P and then narrow down to individual stocks in prospective groups. Does anyone know of any off the shelf software that can back test in this manner? fan27