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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: FlyingCircus   😊 😞
Number: of 6131 
Subject: Re: Managing Risk with Saul Picks
Date: 06/12/23 11:22 PM
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No. of Recommendations: 10
Hiphop, there's absolutely nothing truly "mechanical" about the Saul picks, or generating new ones.

The finviz page is just doing what 14 or 24 or 34 other financial websites do - total buy recommendations from analysts - sell recommendations or that falsely accurate rating average. It's groupthink and it means *nothing* other than it's an aping of recent momentum. Same as its been for 30 years - not many analysts make money or survive by being contrarian. The analyst's ratings are notoriously too bullish, and late to "sell". We can do that ourselves.

Short term transitions can be identified by looking at a stock's PPO, or more confusingly MACD, and relationship to moving averages. Combined with volume, combined with is the price at "extremes" in relation to its moving averages. When they start turning down, you have to be willing to pull the trigger - and buy again when the bullish transition happens. The big risk is this leads to whipsaw and trading losses. I read somewhere years ago that if you win 55% of your trades you're doing really well.

Investors.com (Investors Business Daily) has for a very long time been the master of teaching people how to short term swing trade based on conditions like a 3 day bullish up move followed by a short pullback, etc.

FC
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This community has written 6,115 posts about Mechanical Investing. The article-length ones it recommended most:
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