MonthFebruary 2020

What is Overhead Supply?

Overhead supply refers to buyers who entered a trade near a high and are now waiting to sell as the stock has had a significant drop in price. These buyers are waiting for the price to rise close to the price they paid so they can get out of the trade with a minimal loss.

The challenge with overhead supply is that these buyers can create resistance to upward price movement.

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In my opinion, far and away the most important thing to master in Wall Street is the tape.

Gerald Loeb

Custom Screen: Stocks with Strong Sales

One of the unique features in MarketSmith is the option to filter the database of over 7000 stocks into a manageable list that meets criteria in line with your investing objectives.

I recently created a screen focused on strong sales. I also included a high RS Rating which will compare the price performance of a stock versus all other stocks in the database.

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Merge Output of Multiple Screens into One List

If you have multiple screens in MarketSmith that you run regularly, by combining the results into one list, not only will it eliminate duplicate entries, you’ll have only one list to peruse.

This video tutorial will show you all the steps to quickly merge the output of your MarketSmith screens into one consolidated list.

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Comparing Cash Flow vs EPS

When looking at fundamentals in MarketSmith, Earnings Stability is an indicator of the volatility of a companies earnings. If the volatility is low (e.g. into the single digits) you know a company has consistent earnings and you may choose to dig deeper to better understand if the earnings are consistently up, down or flat.

Cash flow is the net cash a company produces on a per-share basis. By comparing cash flow to EPS we can get a sense of the profitability of a company.

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