How to Alpha Scan to Make Bank
We dont think folks really appreciate the power behind our custom 'Alpha Scanner', all the readers here spend huge amounts of time reading ahout Hurst, Gann and Wyckoff yet the let the pages on this site covering our Alpha Scanner alone. Well we hope this post changes this.
Our Alpha scanner is great for finding HOT stocks or ETFs when the market has suffered a 5% to 10% dip, the scan below is a backtest on the day when the SP500 hit the 200 SMA for the first time in a while. Every one knows that the health sector has been the sector of choice, so we'll use that, plus we only want stocks that are currently beating the benchmark index (SP500) or in other words we want positive alpha (ie positive relative strength) in the last 20 days. Thats means we want stocks that are HOT now!
Relative strength or Alpha is a favorite measure used by all of the three legends studied at this site, more so by Wyckoff.
Here is the scan results. Review the stock selection at will. Most have done ok, BIIB got a bit excited!