Thread by @OWSM_trader

Tweetstorm: Weekend learning Ross haber notes part 2:
@RichardMoglen did a fantastic job in this one. Relating concepts with charts is just so great.

Link:

Charts:

1. What a chart looks like
2. Then drop down to fundamentals
3. Earnings acceleration

2/
4. Sales picking up
5 annual: earnings
Bill told: estimates are conservative

ROE: 17%
Institutions sponsorship: pickup
Insurance, cos, trusts increasing their sponsorship
Quality of them is also important
Top notch mutual funds buying it.
Idea is to ride their good tails.

3/

How many funds ?
-big sponsorship
-increasing for quarters

*How much as too much?
Use it as secondary indicator
Smart & successful funds
Not necessarily the funds own the stock it doesn't mean that manager is great.

4/

One can see triple digit earnings growth even 6 quarters after topping out.

Pay attention to where leading stocks are.
Are more groups under accumulation ?

Relative strength line definition: It just the plot of ratio of price of stock wrto NIFTY 50

5/

**Relative strength & relative strength line :

Divergence btwn price and relative strength line.
Relative strength line making new highs before price breaking out is strong one.
Stocks can fail breakouts for 3 times too. Can go ugly. Goes with personality of stocks.

6/

Tighter smoother patterns are good.

RS line making new highs before breakout of the IPO base.

Big vols+RSL(divergence)+IPO: super liquid high priced IPO works great. That's a big catch
Some serious edge here.
Put sell stop and its done.

7/

Re-breakouts has been working.
Break out of early stage base with all CANLSIM characteristics. It breaks out and not hit 7-8% SL 7 out of 10 times.

Best ones buy straight away with follow through with high vols.
Relative strength line into new high grounds is big thing.

8/

Screen: up on vols (most important)
Sort by relative strength and check the list.
Pattern->group rank

Mike webster: IPO U-turns are one of the most successful bases.

Relative strength rating + expensive current price.
Find a group that looks interesting

9/

Weekly: top 5 relative strength stocks in a group.

No of stocks in portfolio:
60-80% of portfolio in 2-3 points
Buy points, R:R has an egde then get in
Spread out to 6-8 stocks
Fewer the better
When everything goes good and u don't have money to buy more then 11-12 stocks

10/

Stock picking is not the hard part, risk and emotions management is. Position size is most important.

There is no one who hasn't gone through a tough time.

Let's not be more than 20-30% invested unless u make progress.
Unless u don't show progress then
Never add further.

10/

Don't average down when u r getting out from cash.

Sell down to the sleeping point.
@RossHaber_ is simply amazing. Great learning from u !