John V.'s  Instablog

This week's results from my Super Stock Screener.  Screening is an excellent starting point for finding winning stocks.

My thoughts:  Things are getting interesting as the market went down to levels on the charts that are indicated as zones of 'support' where it is thought that buyers might emerge to support stocks.  It did appear that some support did indeed show up but whether it lasts is anybody's guess, and the news from Greece in Europe is not helping one bit.

Last week I mentioned that I was going to tighten up the Relative Strength (RS) requirement from 88 to 90 in order to weed out more weaker stocks.  This change combined with the general downward trend in stocks brought about the biggest drop in the screener results in a long time, from 46 to 34 stocks.

Now the screen is a lot more manageable and I'm excited at being able to focus on what are now the 34 strongest stocks in the market in terms of earnings, price performance, and Relative Strength.  There has to be a winner or two in this list so keep a sharp eye and watch them closely, I know I will.

To repeat what I said in prior weeks, the only stocks I view or consider buying at all are the ones that make the screening list.  All other stocks don't exist to me and are off my radar.

There was only one stock that is news for the week and that is Taomee Holdings Ltd ADS (NASDAQ: TAOM) which I believe is a stock for a company in China.  Chinese stocks in general have had many problems lately due to fraud, lack of transparency, and shaky financial reporting and so I feel that any Chinese stock is going to have a 'cloud of uncertainty' hanging over them.  Thus I wouldn't touch this one but I will watch it as it is on my lists.

The stocks that fell off the list are too numerous to cite them all, so I'll just say the drop in names is a direct reflection of the bad market environment...see below for all the stocks that dropped off.

The market is still in a downtrend and until things change please be careful no matter what you do in the market.  Once things stabilize then I'm sure we'll all be making big money once again.

As always this is not a buy list but rather a starting point for doing more research.  Stocks that are new are underlined and have an Asterisk (*) next to their company name.

Stock that fell off the Super Stock Screener results from June 12th are below:

Note: This screen is fairly wide (EPS>=45%, Sales>=25%, ROE>=10, RS>=90, Price within 20% of High) and I do have tighter screens as well.  To keep the screen results manageable I removed Industry Groups that I either do not believe in (Financial) or are so Commodity that I have no idea how to pick one from another (Oil&Gas).