Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Sunday, December 04, 2005

Using Stock Research and Stock Analysis Services

...I consider this site a stock market research and education service that is offered to anyone interested in learning how to invest in the market for themselves. I do not manage money and I do not make specific stock picks for anyone in the MSW community. I like to believe that this service is different from most of the stock market services offered on the internet because I aim to teach you how to invest in the market so you do not have to depend on my research for the rest of you trading life. I teach a method, a philosophy that I have developed so you can build a foundation for success; but you the investor must personalize your own system and perform your own due diligence and test what works for you and your trading characteristics and emotions.

It is easy to lead an individual to water but I can’t force this same individual to drink the water if they are thirsty. The same logic holds true for the stock market because I can show you how to invest successfully but you and ONLY YOU can make the proper decisions to show a profit at the end of the year.

I always wonder how many of my members take the opportunity to make money from our MSW Index stocks. This past weekend, I asked them to look in the mirror and be honest about their results over the past year (and their decisions since the rally was confirmed weekly on MSW on 10/22/05). Since we confirmed the rally on October 22, 2005 (on the weekly screen) our MSW Index stocks have been up over 17% as a group (this groups contains 18 stocks that were listed on the weekly screen on 10/22/05 – very impressive results for so many stocks).

The Index has provided us with many buying opportunities at moving average support, consolidations and pivot point breakouts. Since the last weekly screen (November 19, 2005), the MSW Index has advanced by 6.25% with only two stocks falling for a loss (CRDN and FORD). Forward Industries was the largest loser, falling 6.13%. Our best gainer over the past couple of weeks was LMS which was up 23.25% on big time volume. Of the 26 stocks on the MSW Index, eight of them were up more than 10% while another three stocks were up at least 5% or more. Things move so fast in the market, it is tough to sit back and realize how successful our MSW Index stocks have performed in 2005 versus the rest of the market. A new page will be added as the year closes that will update the performance of the MSW Index versus the major market indices (NASDAQ, DOW, S&P 500). We are currently calculating a weighted MSW Index going back to early 2005 to see how well we have performed compared to the major market indices throughout this entire year.

If members have not taken the opportunity to capitalize on our MSW Index stocks, it is completely okay because we plan to perform even better in 2006 if the market cooperates and the NH-NL ratio continues to gather strength. Even more, many of our members have started to capitalize on their own stocks due to the education and information we have provided them. We screen the top 30 stocks in our opinion but that doesn’t mean that other stocks (outside of MSW) can’t perform better and our members are armed to find these "other" stocks if they want. If you don’t have the time to research your own stocks, we provide the most complete and comprehensive list that will allow you to make solid market decisions based on a limited time schedule. Where else will you find such a diverse list of 26 stocks that perform as well as our stocks do? We don’t change our stocks very quickly because we only deal with the best and we know we can give them room to correct and to grow (examples include but are not limited to WFMI, COH, URBN, LMS, QSII, CBG, etc.).

Our double digit gainers over the past two weeks include: AAPL, NWRE, CUTR, ESRX, OXPS, KNOT, HANS, & LMS. Three of them were priced within the $60-$100 range as these impressive gains accumulated over the Thanksgiving holiday.

Here are our impressive Results since the start of the latest Rally (10/22/05)
Only 6 weeks of trading time:

Many of the stocks listed on our MSW Index have been on our screens since early 2005 and have held up better than most of the market because we stick with stocks that have high relative strength ratings. As of yesterday, 18 of the current 26 MSW Index Stocks were listed on the 10/22/05 weekly screen when we confirmed the rally in late October. The eighteen stocks are up a combined 17.11% as a group with only three of them giving us a loss since the rally began (ADSK, FORD, CTRP). Our biggest winner from the rally start is CUTR with a 63.83% gain; LMS comes in a close second with a 50.69% gain; ESRX follows up third with a 37.79% gain. Overall, ten of the eighteen stocks have gains in the double digit range with eight of them reaching gains of 20% or more. Two of the stocks that have given us losses have been removed from the MSW Index this week and this is not a coincidence. Forward Industries (down over 14% since the start of the rally) has been violating moving averages and support areas so we must remove the stock from our MSW Index (even though it is our #1 gainer in 2005 with more than a 300% gain sine it was first covered on 1/23/05 at $6.38). FORD has made 32 weekly screens MSW in 2005 as it climbed from $6.38 to over $29 at its peak. CTRP, a stock that has been up and down in recent weeks, failed to recover the moving average as the week closed so we are removing it from the MSW Index as we feel it may be headed in the wrong direction.

We don’t expect every member to trade exclusively off of our MSW Index but we know that almost every member learns using our index since we show them how, when, where and why we add and remove stocks to our screens. Using this knowledge to their advantage, they can fine tune their own trading method and become successful trading the markets for many years to come without the aid of our screens. We lead our members to the water and they typically drink the water when they are ready (and we never force them to drink it). The next time around, they find their own water source and remain hydrated for the rest of their trading lives. This is the goal of MSW, to teach “successful investing through education”. No one will ever be successful trading another investor's system so we teach each and every member to develop their own system using our philosophy only as a foundation. This is how I developed my system, with a foundation using CANSLIM. I have tailored the system to my style of investing and have added and subtracted what works for me and I expect every member in MSW to do the same!

Chris Perruna "Piranha"
Founder, President and Chief Analyst
www.MarketStockWatch.com

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