Market Dynamics 

Relative Strength In A Long-Term Point & Figure Chart Format

 

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Discover the amazing power pf point & Figure Charting

Independent Second Opinion On Stocks With

An Analyst's Rating Change

for

Independent Portfolio managers, long-term Investors and RIAs


The TPARC Report

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More often than not, we know what Wall Street analyst's opinions are about a particular stock but we feel that we need a second opinion, an independent investment opinion regarding the merits of the stock as a long-term investment. The Market Dynamics service provides just such a second opinion for long-term investors. This second opinion is derived from the analysis of a long-term chart of the trend of relative strength for that stock. It is long-term in perspective. The major trend of relative strength is what controls either the "thumbs up" or "thumbs down" for the second opinion. The founder of the Market Dynamics Service is located far from Wall Street and is an independent investment advisor with over 35 years of experience in investment management.

The service reports on Wall Street analyst's rating changes as they are reported by the news media. These rating changes are public information and are carried over the internet on a timely basis. The stocks that are covered in this daily report are usually well-known, broadly held stocks of major corporations with a liquid market for their shares.  The active markets for these stocks usually involve large numbers of transactions on a daily basis. The markets for these widely held stocks cannot be effectively controlled by a single analyst or a single brokerage firm and the trend of performance usually can be relied upon to be an accurate reflection of the fundamental financial performance of the company. The author usually does not give a second opinion on very low priced stocks or on stocks that are too thinly traded.

This daily report is called Technical Perspectives on Analyst's Rating Changes and it is usually referred to as the TPARC report. On a normal day in the market about twenty stocks will receive a rating change by a Wall Street analyst and that triggers a technical review and the long-term trend of the stock's performance will be clearly described. The objective of this report is to provide a second opinion on stocks that have received a rating change by an brokerage analyst in order to steer long-term investors away from investments in stocks with bad performance trends and to encourage the consideration of investing in those stocks with good, strong trends of relative performance.  This report has been sent to Market Dynamics users for about the last five  and one half years and the feedback from market dynamics users has been very good.

Experience shows that knowing what not to buy is a very important part of profitable stock selection. This seems to be counter-intuitive to most investors but, time and time again, avoiding the problem stocks is a key to successful portfolio management. Stocks going down are definitely problem stocks and no one knows when their performance will improve. During the past ten years, many investors would have been able to avoid the major problem stocks like ENE, WCOM, CMGI, JDSU, UAL and many other stocks that turned out to be investment disasters. Many stocks that were victimized by the sub-prime mortgage crisis showed up clearly as having formed major tops and they were locked into serious downtrends well before the real crisis became obvious (many of these stocks are reviewed in the Case Studies page of this web site). A stock with a persistently bad trend of relative performance is not the result of an accident or random happening. It is best to believe that something fundamental is behind that poor performance. Many investors are prone to buy stocks that are going down because they believe they are getting the stock at a bargain price.  Many times that apparent bargain is a trap for the unsuspecting investor.  

The report clearly shows the change in the rating by the brokerage analyst and then the analysis of the trend of relative performance follows. It can be shocking how divergent these opinions can be.

This report is prepared daily and sent to subscribers via e-mail.

Your feedback would be most appreciated - just send me an e-mail.

The best way to get a feel for the value of this report is to review a recent report.

Click on the following link to view the report.  

Technical Perspectives on Analyst's Rating Changes - 10-07-2011

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