The Sarmiento System - Part II

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How to view the entire chart:


1. Try clicking on the name of the most recent article in the column on the right. This will remove the "Archives" list.
2. Try right click on the chart itself and open it on a separate window.


I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan

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CANDIDATE SELECTION

The following selection procedure uses Platinum to locate candidates, however, a similar approach may be used with Advanced Get.

After logging into Platinum, go to the Site map and right on the first column you see the “Stock Rankers” menu. Select “Volume % Change”.




In the appropriate page, enter 1 in the field labeled “days between volume chg”, and 1,000,000 in the field labeled “Day Stock
Volume” and then proceed with the ranking.



Once the ranking is complete, the resulting list will arrange stocks by the percent change in volume of shares traded compared to the 30-day average.



Next, save the list of stocks exceeding the 200% volume increase. Simply enter the number of stocks meeting the 200% minimum volume increase in the field named “Save top”. Then name the stock list “200%
volume increase” and click the “REPLACE” button.



The list is now ready for further evaluation.

Next, return to the Site Map again, and select the “Price % Change” under the “Stock Rankers” menu.



In the step 1 of the “Price % Change” ranker, choose “both” bullish and bearish change. Under the second step, choose the list just saved (“200% volume increase”) in the appropriate pop-up menu and proceed with the ranking.



After the ranking, your list may be narrowed again by selecting stocks with a minimum of 5% change in
stock price. This reduced list may now be saved under a different name like “Volume/price spikers”.



Now you may examine each of the short-list components individually to select candidates with a
strong catalyst that could produce good profits. To copy the list for use under a financial news site, like
Yahoo finance, go back to the Site Map and make sure that the “Volume/price spikers” list is selected in the
pop-up list under the “List Tools” menu, in the third column of the Site Map.



Then click on the “Edit Lists” under the same “List Tools” menu. That takes you to a page where the list of ticker symbols may be edited or copied.



In the second field, you can see the name of the company identified by the ticker symbol. The list may be entered in yahoo finance http://finance.yahoo.com/ to display today’s headlines associated with the stock symbols selected.

If you are back testing the method described here, and as long as you don’t go too far in the past, you may be able to see the headlines on any specific date you are back testing. You may use a variation of this BLS: http://finance.yahoo.com/q/h?s=GRMN&t=2006-11-01 Simply substitute the “GRMN” for any or all the names in the “volume/price spikers” list, and the date “2006-11-01” for the date you are back testing. Look carefully at the catalyst. Read the headline and the details of the news, and then select stocks that meet the conditions outlined in Part I of this series.

In fact, here is the BLS for the headlines of all stocks in the list of the example above, a search made in Nov. 1st, 2006.

http://finance.yahoo.com/q/h?s=GRMN,CNE,MA,PDS,PGH,OII,CVS,EXP,ESRX,MHS&t=2006-11-01

Examine the headlines and then using Platinum, backtest your proposed trades for each of the stocks.