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At the beginning of every month, we post our Monthly TOP 50 HOT Picks WATCHLIST that we feel best matches the Intermediate term trading condition of the market based on our trading system. The stock lists are a very select group of companies based on our criteria given at the bottom of this section.
In general, the picks will follow both the short term and intermediate term trend of the market. However, in the case of a oscillating market like we had in 2004 and 2005, it will be the optimum mix of longs and shorts at any given time. The positions will be traded using the Phoenix Intermediate Trading System Rules and are all archived. A Sample of this service is given on the top left corner and is our May Top 50 that has been updated thru the Oct. 14, 2005 close.
The ultimate intent of this service is to highlight a group of stocks that possess both strong fundamentals and strong intermediate to long term technicals simultaneously for longs and just the opposite for shorts. To that end, we have included our proprietary Fundamental rating as part of our selection criteria that does incorporate the underlying fundamentals of each company.
The Top 50 Monthly list is updated the first week of the month and the 50 stocks will typically be completely different from the previous month. This will give you plenty of great ideas for both your portfolio and possible OPTIONS PLAYS. While the list is designed to be as diverse as possible, it is limited by a strict set of selection criteria that must be met.
The scans we are using are designed to find only the strongest trending stocks whether they be trending up for longs or down for shorts.
We are providing the Intermediate Trader plenty of time to do their own research on the stock lists by posting them each Sunday night and the 1st week of each month. By sending out 50 different stock picks every month, we are giving the Intermediate Trader plenty of options to pick the ones they like the best for the next few months.
We will provide our best guess on the risk level of each pick to be able to better match the Intermediate Trader's style.
The following is a list of the criteria we use to select our stocks for the Monthly Watchlist:
- Stock needs to be in a strong intermediate and long term uptrend for longs or in a strong intermediate and long term downtrend for shorts. (typically greater than three months and in most cases longer than six months).
- The long term uptrend picks need to exhibit a consistent and steady growth accompanied by the appropriate consolidations and without erratic or excessive negative price swings.
- The current stock price needs to be greater than $5.00 and the average daily volume greater than 150,000 shares (most stocks will be > $15 with volumes > 500,000 shares)
- The stock price needs to be above the 50 DMA when selected for longs and below the 50 DMA for shorts.
- Both the 50 and 200 DMA need to be trending up for longs and trending down for shorts.
- Our PHOENIX FUNDAMENTAL COMPOSITE RATING has to be and A or B at the time of the selection for longs and a D or F for shorts.
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