In this volatile market, it pays to combine technical analysis with strong fundamentals before one plunge into a stock. One must also plan his exit strategy by monitoring the next price resistance. For those who scorn espousing value and momentum trading in investing, I urge you to read this article: Momentum element in value investing
But the researchers found that a strategy that simultaneously pursued value and momentum performed better over the long term than value or momentum alone.
Technical volatility is measured by variance/standard deviation, and synonymous with risk. A technical trader is mainly concerned with tracking the short-term volatility of prices and patterns.
Fundamental volatility, however, tracks key financial trends such as sales, profitability, book value, range of P/E, P/Sales, P/BV or P/CF, etc. Look at any 10-year key financial data. Is Mr. Market in sync with Mr. Accountant?
From GuruFocus, Warren Buffett said many times that the companies that:
1. Are simple and easy to understand
2. Have predictable and proven earnings
3. Have economic moat
4. Can be bought at a reasonable price
Convinced? Based on GuruFocus' Undervalued Predictable Companies - Discount Cash Flow and Discount Earnings - GuruFocus.com , I have streamlined the list of stocks with the following criteria:
1) Highest discount to earnings (%) with margin of safety at least 50%
2) High business predictability with at least 4 stars
3) Stock on an uptrend
4) Next price resistance. If the stock edges over the next price resistance, then one must investigate if it has reached its intrinsic valuation and plan an exit strategy if it is not a buy-and-hold investment.
Here’s the list:
CACI Resistance: 58.90
GD Resistance: 68.85
HRS Resistance: 45.67
CVS Resistance: 38.82
MSFT Resistance: 27.97
WMT Resistance: 54.42
AAP Resistance: 60.69
SYNA Resistance: 26.41
Italics are copied verbatim
Disclosure: No positions but may initiate it within next 24 hours.
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
But the researchers found that a strategy that simultaneously pursued value and momentum performed better over the long term than value or momentum alone.
Technical volatility is measured by variance/standard deviation, and synonymous with risk. A technical trader is mainly concerned with tracking the short-term volatility of prices and patterns.
Fundamental volatility, however, tracks key financial trends such as sales, profitability, book value, range of P/E, P/Sales, P/BV or P/CF, etc. Look at any 10-year key financial data. Is Mr. Market in sync with Mr. Accountant?
From GuruFocus, Warren Buffett said many times that the companies that:
1. Are simple and easy to understand
2. Have predictable and proven earnings
3. Have economic moat
4. Can be bought at a reasonable price
Convinced? Based on GuruFocus' Undervalued Predictable Companies - Discount Cash Flow and Discount Earnings - GuruFocus.com , I have streamlined the list of stocks with the following criteria:
1) Highest discount to earnings (%) with margin of safety at least 50%
2) High business predictability with at least 4 stars
3) Stock on an uptrend
4) Next price resistance. If the stock edges over the next price resistance, then one must investigate if it has reached its intrinsic valuation and plan an exit strategy if it is not a buy-and-hold investment.
Here’s the list:
CACI Resistance: 58.90
GD Resistance: 68.85
HRS Resistance: 45.67
CVS Resistance: 38.82
MSFT Resistance: 27.97
WMT Resistance: 54.42
AAP Resistance: 60.69
SYNA Resistance: 26.41
Italics are copied verbatim
Disclosure: No positions but may initiate it within next 24 hours.
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
