The default moving averages shown on a daily chart in MarketSmith are the 50-day and 200-day. Often times it’s helpful to view shorter term moving averages.
This short tutorial walks through how to customize MarketSmith to add a 21-day exponential moving average (EMA).
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:
Continue readingThe 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.
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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.
Continue readingWhen 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.
Continue readingAlthough I don’t trade on extended hours, I do find it helpful to view pre-market trading as it can provide a glimpse into the overall market sentiment prior to the opening bell.
If you don’t have extended hours pricing enabled, the stock price in the upper right will look as follows:
In the fundamentals section within MarketSmith, you’ll often see red and/or green arrows after EPS estimates, as shown in the screenshot below:
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