The Power of the ST50 List
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Transcript of The Power of the ST50 List
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The Power Of The ST50 List
How To Outperform The Market
@ivanhoffStockTwits50.com
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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;
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The ST50 List Today
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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
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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
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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
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Market Corrections Set The Stage for
Huge Future Trends, part I
ST50
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Market Corrections Set The Stage for
Huge Future Trends, part II
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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.
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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;
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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.
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The ST50 List in Q3, 2013
ST50
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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