MarketSmith Tips & Tricks

Tips, tricks and tutorials on how to get most out of MarketSmith.

RS Line vs RS Rating – What’s the Difference?

Although both values appear next to each other on a MarketSmith chart, the RS Line and RS Rating are quite different in what information they represent. To create a visual to indicate these values are unique, I’ve drawn a red box around the RS Line and a green box around the RS Rating.

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MarketSmith Tip: Set an Alert at Pivot, Profit or Loss

Here’s a quick tip shared by Irusha on IBDLive to quickly set an alert at the profit, loss and pivot shaded areas in MarketSmith.

Begin by moving your mouse over the green shaded and right-click. A small dialog will appear with the text Set Alert.

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Understanding Earnings Stability & EPS Growth Rate

Earning stability is an indicator of the predictability of a companies earnings. Another way to think of it is a volatility ranking of the earnings. The lower the number, the less volatile. Anything under 10 is very stable. For example, an earning stability of 3 indicates a company has consist earnings, quarter to quarter, year over year.

As far as the EPS growth rate, the technical definition follows:

The compound 3-year growth rate calculated using the least squares fit over the latest two to three years’ earnings per share on a running 12-month basis.

Investors.com
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View Top-Rated Institutional Sponsors For Any Stock

The “I” in CAN SLIM stands for Institutional sponsorship. If a top-rated fund has a position in a stock, that’s a positive sign.

With MarketSmith you can search for and flag institutional sponsors. Once flagged, you can quickly view if an institutional sponsor holds a position in a stock.

In this video I’ll walk through the steps to find and flag top-rated sponsors. I’ll also show how to determine if a stock has top-rated funds holding a position.

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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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