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How to build a screen on MarketSmith to uncover stock market winners

What are we trying to do here with this screen? This is a screen we will develop with you, and I will teach you how on Marketsmith to find winning stocks. I want to show you the screens we’re going to build it. One of the basic foundations we have is right here. This is from 40 great stock market winners, which is a daily graph online product years ago. But folks, the numbers don’t change. The numbers remain constant. We look for stocks that have great earnings right here. This is the quarter prior to their move or not, and they have great sales. Great earnings or great sales. What do we look for? 40% earnings minimum or, on average, 45% sales. Also, relative strength 92. Finally, two-thirds result in an industry group rank. So we look for leading groups. That’s point number one for us. Here’s point number two. And we’re going to use this data to build a screen.

We want to find winning stocks. What do you do? Study past winning stocks and take that information and make a screen rankings. The majority of leading stocks come from leading industries. You can read this.

37% related to the industry group, 12% related to the sector. The bottom line is the last part, almost half of the stocks. Price performance is related to the industry and the sector that it’s in. So what does that tell you?

We’re going to look for leading groups, the leading stocks with great earnings or great sales in leading groups. So let’s remember that. And here’s how we’re going to do it, folks. I’m going to build a screen with you right now.

This is Marketsmith. Okay? And over here is where you can build new screens. So we’re just going to do this. We’re going to click the new screen, and we’re going to click the new stock screen. And we’re going to call this Screening, and you can name it.

How to build a screen on MarketSmith to uncover stock market winners

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