The Power of the ST50 List

download The Power of the ST50 List

of 13

Transcript of The Power of the ST50 List

  • 7/27/2019 The Power of the ST50 List

    1/13

    The Power Of The ST50 List

    How To Outperform The Market

    @ivanhoffStockTwits50.com

  • 7/27/2019 The Power of the ST50 List

    2/13

    The Story Behind The ST50

    Created In September 2010;

    Weekly List of Current Market Leaders;

    Rebalanced Every Monday; Designed for Long-term Trend Followers, but

    also many swing traders are using it for ideas;

  • 7/27/2019 The Power of the ST50 List

    3/13

    The ST50 List Today

  • 7/27/2019 The Power of the ST50 List

    4/13

    The Goals Of The ST50 List

    1) Outperform the market by highlighting themarket leaders

    2) Save Time there are 8000 stocks and 6000

    ETFs. It is a lot easier when you focus on 50pre-selected names that already have thefeatures that big past winners had BEFOREthey had their biggest moves

    3) Market Timing when to be aggressive andwhen to raise cash

    ST50

  • 7/27/2019 The Power of the ST50 List

    5/13

    How Is The ST50 List Different

    There is lot more than just Price Momentum behind the ST50 list:

    Market is forward-looking; Our equity selection is forward-looking too. Wegive more weight on forward earnings than past earnings;

    The best performing stocks in any given year are the ones that surprise themost. We pay a particular attention on the size of earnings surprises andmarkets reaction to them;

    More weight on price momentum many stocks could double and triplebefore they report their first profitable quarter. We dont want to missthem;

    Setup score, which pushes lower stocks that are too extended for a freshentry;

    Full Transparency we track the performance of each individual stocks:how many weeks it is on the list; how it does while on list and after it isremoved;

    Despite the fact that it is a favorite source for ideas to many swing traders,the ST50 list is designed for long-term trend-followers;

    Provide a glimpse into the social sentiment towards each stock on the list

  • 7/27/2019 The Power of the ST50 List

    6/13

    LessonsThere are more than 150 weekly issues of the ST50 list, going back all the wayto September 2010. If you go through them, you would realize that:

    Trends could continue a lot longer than anyone expects (especially in thebiotech sector);

    Price Targets Are Irrelevant Noise;

    Market is forward-looking. A stock could triple before it reports its firstprofitable quarter. (recent examples: YELP, SCTY, TSLA)

    If you want to ride a stock for more than 100% gain, you have to be willingto go through at least one 20% pullback = it is not a pleasant feeling foreven the most experienced;

    Best Time To buy is when the indexes are down 10% or more in a 1-2months and you see stocks on the ST50 list breaking out to new 52-weekhighs from proper bases;

    Bull market corrections take the form of sector rotation. There is aconstant change in leading names;

    Dont fall in love in any stock. Every stock is price cyclical. Sooner or later,every trend ends, but it leaves plenty of clues along the way.

    Embrace Market corrections. They provide incredible opportunities.

    ST50

  • 7/27/2019 The Power of the ST50 List

    7/13

    Market Corrections Set The Stage for

    Huge Future Trends, part I

    ST50

  • 7/27/2019 The Power of the ST50 List

    8/13

    Market Corrections Set The Stage for

    Huge Future Trends, part II

    ST50

  • 7/27/2019 The Power of the ST50 List

    9/13

    The ST50 List Saves You A Lot Of Time,

    While Improving The Odds Of Finding

    and Riding the Next Big Winners A lot easier to go through 50 preselected names

    that already have all the features that big winners

    had BEFORE their biggest moves; Some stocks will stay only a few weeks on the list

    (usually the losers); others will stay multiplemonths (usually the biggest winners);

    Improve the odds of finding big winners; Saves you from trouble if you focus on the list,

    you wont deal with shitty stocks that are in adowntrend.

  • 7/27/2019 The Power of the ST50 List

    10/13

    Recent Examples of Long-Term Trend

    Following Exits on the ST50 List

    $LNKD for 97% in 42 weeks;

    $FNGN for 127% in 45 weeks;

    $ASGN for 80% in 47 weeks;

    $N for 60% in 55 weeks;

    $GTLS for 51% in 18 weeks;

    $KORS for 81% in 58 weeks;

    $PRLB for 68% in 21 weeks;

    $SBUX for 42% in 41 weeks;

  • 7/27/2019 The Power of the ST50 List

    11/13

    Market Timing

    The Market Averages hide more than they

    reveal. They are lagging indicators

    The ST50 list is a Leading Indicator;

    When to be aggressive and when to raise cash

    When to cut position size;

    Sector Rotation.

  • 7/27/2019 The Power of the ST50 List

    12/13

    The ST50 List in Q3, 2013

    ST50

  • 7/27/2019 The Power of the ST50 List

    13/13

    The ST50 Premium

    stocktwits50.com

    The ST50 List is a small part of the ST50

    Premium Service;

    Model Portfolio;

    Swing Trade Ideas;

    Almost daily market reviews;

    Educational articles that help to accelerateyour investing learning curve;

    Mentoring.

    ST50