Thursday, July 6, 2017

Invest with Confidence, Being your own Personal Stock Analyst

From the desk of Superior Profit and Sagar Nandi.

Have you wondered how and why stock analysts regularly promote stocks that are at 52 Week High and say "These are wonderful buying opportunities"? Or why they wanted you to buy the stock at the very top and not while it was going up from a lower price?

Take Tesla (TSLA) as an example, seen using CUE Hop On chart template. In the chart, green/cyan are Bullish, red/magenta are Bearish. Yellow is Neutral. 

If you were listening to the media and Stock Analysts, you were probably hearing a lot about Tesla going up and up and away.

However, Tesla dropped after displaying several magenta (Flow) color Candle in this Daily chart. Using information from the CUE chart and the Fundamentals of the Stock using CUE Vital Fundamentals, you could Protect Profit in Long Position and possibly get ready to Short the Stock for Swing Trading.

Tesla is just one case. Instead of relying on other's recommendations that seem to confuse more than help, you could come up with your Buy/Sell Recommendation of a Stock yourself quickly and objectively using CUE 360 degree analysis. You could do that with Tesla, or with any other company in the world.

Here is another example of how CUE Traders gave a Buy Recommendation on a Stock in the USA Market using CUE 360 degrees analysis.

The Buy conclusion on the Stock CECE (USA) was achieved by combining Industry Analysis (using CUE Edge Sector-Industry Analyst), Fundamental Analysis (using CUE Vital Fundamental Analyst) and Technical Analysis (using CUE Global Technical Charts). This holistic CUE Analysis gives you a 360 degrees view of what is going on in a Stock. And you can Buy (or Short) more confidently.

CUE Edge Industry Analyst

CUE Edge Industry Analyst ranks Industry Groups in Real Time to show which ones are getting stronger and which ones are being weaker.  This Ranking updates in Real-Time. You always have the most up to date information at your fingertips.

You do not even need to read the actual Ranks. Reading the Heat Map colors is enough. If you see an Industry is changing color from magenta in earlier months to cyan in recent months, you know it is getting stronger.

If you see multiple related Industries are getting stronger at the same time, then you have more confidence in the strength, which was the case with Industrials when we analyzed them in the Live Weekly Market Roundup of Saturday, 1st July 2017 (this is shown in the CUE Edge Industry Ranking Table above). Recording of the session is available on Video Center under Weekly Market Roundup.

How might you use this insight? If Industrials were gaining strength, you could look for Buy Position in Industrials, of course!

CUE Vital Fundamental Analyst

As a Stock Analyst, your next task as to find an Industrial Stock that had the right (low) price. CUE Vital Fundamental Analyst helps you do this analysis visually in minutes.

CUE Vital analyzes a Stock in itself and also relative to its Peer Group of Stocks. Presents all the data into multiple categories using easy to read color codes. There are various pieces of Fundamental information. For quick decision, you might just look at the CUE Vital Scorecard.

When we analyzed CECE using CUE Vital, the Scorecard looked like this on 3rd July 2017.

I will point to the few pieces of information here. You may get more detail on it from the Education Center.

1) CUE Vital can fetch a Stock's (CECE, in this case) Industry Peers and compared the Fundamentals. CUE Vital applies a Score of 1 to the weakest Stock and bigger scores to stronger Stocks across multiple dimensions. And finally, CUE Vital creates a Heat Map using intuitive color coding. Green/Blue is "healthy" or "preferred" condition. Red/Magenta is "weak" or "not preferred" status. Yellow is Neutral. That simple.

2) From column B you could instantly see that CECE had one of the best Earnings Reliability Score. Just seeing the Blue color was enough.

3) From column C you could immediately find out that Relative to its Peers, CECE was valued optimally.  Blue background color told you that.

4) From column D's Blue color, you could infer that CECE had high Internal or Intrinsic Value.

5) Additionally, from column I, you could observe that CECE had a high possibility of Short Squeeze, again, merely reading the Blue color did the work for you.

What you had then? A Stock (CECE) with High Earnings Reliability that was Optimally Priced in itself as well as in comparison to its Peers and the Stock had a chance to shoot up due to Short Squeeze.

We already saw, using CUE Edge Sector-Industry Analyst that the Stock was in an Industry that was gaining strength.

You needed one last check before you could decide to Buy this Stock.

CUE Global Technical Analyst

You only make money Buying a Stock if the Stock goes up.

If you buy it while the Stock is going down, that is called "catching a falling knife". And you end up losing money. You probably would rather Buy a Stock that is not falling, like all other CUE Traders.

Therefore, the third and the last leg of CUE Analysis before deciding to Buy a Stock is to see if the Stock has stopped falling. Starting to go up. Or at least, forming a Base at the bottom and showing signs of strength.

You can analyze all these (and more) using CUE Global Technical Analysis. CUE Global Charing is also a Visual Tool like CUE Edge and CUE Vital.

On 3rd July, CUE Global chart of CECE looked like this (seen using Backdrop Weekly chart on the left and Hop On Daily chart on the right).

The chart labels tell the story. You may learn more about the colors and indicators on the chart from the Education Center.

Now, with the 360 degrees analysis, you had a Stock with a Buy Recommendation.  Recommended by yourself!

And your recommendation would work well.

This trade idea was posted in Superior Profit Traders Community on 3rd July (here is the link to the post). And within two trading days, on 6th July, it has hit the Profit Target.

You may use the CUE 360 degrees analysis in this ways on any Market and any Stock in the world.

A) You might look for Industries that are weakening to either Protect Profit in Long Position or even to Short a Stock using CUE Edge Industry Analyst.

B) You might look for Fundamentally Weakest Stocks for Shorting and the Strongest Stocks for going Long using CUE Vital Fundamental Analyst.

C) You could pinpoint the exact Entry and Exit points of your investments and trades using CUE Global Technical Analyst.

With these three tools, you have everything to be your Stock Analyst. And invest confidently for profit.

Sagar

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