Filter S&P 500 Constituents for Price Position and Trendline Slope

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 |  Includes: ABC, AKAM, ALTR, AZO, BRCM, CCE, CLX, CTL, CTSH, DUK, EMC, EOG, HCP, LLTC, MCD, NEM, SO, VTR
by: Richard Shaw

What stocks within the S&P 500 show favorable price positions and trendline slope?

We used these criteria to develop a list of the strongest price performers:

  • Close > 200-day Moving Average
  • 100-day Moving Average > 200-day Moving Average
  • Close > midpoint of 21-day Price Channel
  • Close > midpoint of 63-day Price Channel
  • Linear Regression Trendline Slope for 100-days > 0
  • Linear Regression Trendline Slope for 200-days > 0

Using those filter criteria, 49 companies (about 10%) passed. We view that as a somewhat negative indication for the index as a whole.

The test survivors are:

The five largest by market-capitalization (as of July 2) in descending order are:
MCD, EMC, NEM, SO, EOG.

The five highest yielding (as of July 2) in descending order are:
PGN, Q, HCP, SO, MCHIP.

The five with the highest 7-year sales growth rate (as of last quarterly report) in descending order are:
CRM, CTSH, AKAM, VTR, EOG.

The five with the highest 7-year EPS growth rate (as of last quarterly report) in descending order are:
EMC, CTSH, EOG, NEM, MCD.

The five with the highest 7-year dividend growth rate (as of last quarterly report) in descending order are:
MCHIP, MCD, PGR, EOG, ABC.

The five with the lowest total debt to assets ratio (as of last quarterly report) in descending order are:
AZO, Q, LLTC, CLX, CCE.

The five with the highest total cash less total liabilities (as of last quarterly report) in descending order are:
CTSH, ALTR, BRCM ,TIE, AKAM.

The five with the highest average daily dollar trading volume (as of July 2) in descending order are:
NEM, MCD, EMC, BRCM, EOG.

See price position and trendine slope filter for ETFs as of July 7.

Disclosure: As of July 9, 2010, we do not own any securities mentioned in this article in any managed accounts.

Disclaimer: Opinions expressed in this material and our disclosed positions are as of July 9, 2010. Our opinions and positions may change as subsequent conditions vary. We are a fee-only investment advisor, and are compensated only by our clients. We do not sell securities, and do not receive any form of revenue or incentive from any source other than directly from clients. We are not affiliated with any securities dealer, any fund, any fund sponsor or any company issuer of any security. All of our published material is for informational purposes only, and is not personal investment advice to any specific person for any particular purpose. We utilize information sources that we believe to be reliable, but do not warrant the accuracy of those sources or our analysis. Past performance is no guarantee of future performance, and there is no guarantee that any forecast will come to pass. Do not rely solely on this material when making an investment decision. Other factors may be important too. Investment involves risks of loss of capital. Consider seeking professional advice before implementing your portfolio ideas.