SMA Pro “Beta” Industry Leaderboard

Introduction

• A combination of the right process and actionable intelligence are necessary to tilt the odds of winning trade in our favor.
• An important starting point for all winning investments is identifying stocks that offer the best reward/risk (i.e., “what stock should I buy?”).
• We take a systematic approach to identify our picks.  We search for the strongest stocks in the market: i.e., stocks significantly outperforming their peers, regardless of market condition, and demonstrate the flow of investment. We then bring these stocks into a curated list for further analysis.

• We have codified our approach into a a “public beta” app called the SMA Pro Leaderboard!
• We use our leaderboard as a starting point to apply our trade management process, including:
  • Entry/exit/escape
  • Position sizing within our portfolios
  • Determining if there are “sister strategies” we should be investigating
• Our objective: Crush the annual S&P 500/Nasdaq performance (i.e. aim for up to 3X performance of the indexes performance)

How is the leaderboard generated?

• We rank the entire universe of stocks based on a combination of fundamental criteria.
• Once we rank the full set of stocks within our database, we filter out the following:
  • Stocks with prices less than $20
  • Stocks with low float/volume
• Given the list of stocks are generated on a fixed set of filtering criteria, it is possible for stocks to move in and out of our list (sometimes daily). This issue is by design – as daily prices change, stocks can move in and out of our criteria threshold. It does not mean the stock is no longer good enough for a trade. Once a stock appears on our list, we will determine if there is an appropriate setup from a trading/investment standpoint.

What does the leaderboard include?

• A sector heatmap that includes the hottest tech and non-tech industries arranged in order:
  • The shade of green indicates the relative strenth of the industry. Darker shades are stronger.
  • This leaderboard rankings are updated on a daily basis, and charts for specific stocks update intraday.

• A list of stocks that meets our criteria for top 20% relative strength and money flow:
  1. Stocks are grouped by industry, with the strongest industries listed at the top.
  2. Stocks are visualized as a candleglance with easy links to Finviz for quick analysis.
  3. Note: As traders and investors – we highly recommend Finviz Elite further fundamental and technical analysis.

• A list of stocks that have dropped below the required threshold for a top 20% relative strength score:
  • Given the list of stocks are generated on a fixed set of filtering criteria, it is possible for stocks to move in and out of our list (sometimes daily).
  • This movement of stocks in and out of our list is by design. As daily prices change, stocks can above and below threshold. That said, once a stock appears on our lists, we can determine if there is an appropriate setup from a trading/investment standpoint.

What performance can I expect from this list?

• The stock leaderboard can be used as a tool to beat the QQQ and S&P 500 indexes on an annual basis.
• Performance can vary by each trader based on the stocks that they pick and their holding periods.
• We expect there will be trades that will not work in our favor – we plan to limit those losses via appropriate trade management. Read our trading principles here!
• Sample swing trade results can be found from our co-founder on Stocktwits.

How should I use this list?

1. Swing trading: Accelerate your research by selecting trades that are high probability, high reward/risk.  In addition to providing the list, we will review and provide our recommendations.
2. Long term Investing: Find the next potential multi-bagger and potential “sister strategy” plays

How can I provide feedback on the leaderboard?

The leaderboard is currently in a public beta form, and we are accepting feedback, comments, and questions so we can continue to make improvements. Feedback can be easily provided by clicking the thumbs up or thumbs down button and sharing your feedback with us.

What additional trading tools do you recommend using with the leaderboard?

We highly recommend the following platforms:

1. Finviz: An all-encompassing platfom to complete futher fundamental and technical analysis on any stock
2. CML Viz: Similar to Finviz, CML Viz has a number of data points to complete your fundamental and technical analysis
3. Trading View: An excellent and intuitive charting software – built for traders!
4. Stockcharts.com: Another great charting platform but more tuned for charting vs. trading

Disclaimers:

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, investment timeframe, and liquidity needs.

Any opinions, news, research, analyses, prices, or other information offered by Seattle Market Analytics LLC are provided as general market commentary, and does not constitute professional investment advice from a qualified person, firm, or corporation.. the blog and its authors will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Please consult the appropriate professional advisor for more complete and current information on any security.

Seattle Market Analytics LLC shall not accept any liability with respect to the accuracy or completeness of any information on this site, or by any third party/affiliate. While efforts will be made to ensure the accuracy of the information, we are under no obligation to update or correct any information provided on this website. All statements and opinions provided across all communication vehicles are subject to change without notice.