Follow The Leaders
Inspired by the recent IBD interview with Jim Roppel
If you don’t know him, Jim Roppel is awesome. His knowledge is incredible while his enthusiasm is unmatched. I really enjoy watching him talk about the markets and always learn so much from him.
He has a service called growthstockmentor.com where you can find more about him and what he does.
Disclaimer- I have never used his service, nor has anyone ever asked me to mention it. But I have only heard great things about it and there is a free two week trail the last time I checked.
On Twitter you can find him @Upticken where he, when we are lucky, will provide his thoughts on various topics.
This post is inspired by his recent interview on Investors Business Daily which can be found on YouTube here or on twitter via Justin Nielsen’s feed.
Jim drops a ton of knowledge. I want to key in on one thing he talked about. He mentioned people got “sloppy” recently and mentioned a simple scan that would help point towards the next “true market leaders”. The scan is simple. It is provided by Marketsmith through Investors.com. It is based on the CANSLIM method explained in the book How To Make Money In Stocks by William O’Neil.
If you haven’t read it. Go read it.
Then read it again.
And again.
Ok, back to the post.
I was watching his interview this morning and figured I would take a look at the screen criteria he mentioned and see what came up.
In Marketsmith, I scanned for the following criteria.
Composite rating of 90 or higher
3 Qtrs of Earnings per share acceleration
15% or less off the 52 week high
Relative Strength rating of 90 or higher
I got 70 names. Probably not a bad list to start working through as the year winds down and we get ready for 2023. Below are the 70 names.
There are a lot of good names on this list when looking for the next monster stock. For this post, I am just going to look at this scan and will put out a longer, more extensive idea generation list on January 2nd to start the year off right.
A few names that stood out to me and I think warrant further investigation are (Symbols):
WING VMI A ABBV CPRX AIT CAT CECO CLH ADM MGRC ENPH FLEX FN PLXS SANM ELF FIX TGLS and TTC
I plan on going through these names more thoroughly and their adjacent sister stocks/groups in the next two weeks. I dont think this is a bad place to start when compiling a list of names to look into for the new year.
Keying in on the leading stocks is not a secret.
Jesse Livermore said “ If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole”.
Nicolas Darvas said “I tried to detect those stocks that resisted the decline. I reasoned that if they could swim against the stream, they were the ones that would advance most rapidly when the current changed.”
Jim Roppel has called these “beachballs under water” just waiting to explode higher (whether he coined that or not I don’t know, but I like it)
That is it for today. I wasn’t planning on doing another email this year but once I watched the above interview, I wanted to give you all something to chew on.
As always, good luck and thank you for reading
—NS