Ian Woodward's Investing Blog

Stocks are like Wolves, They Hunt in Packs

Doodling on a lazy Sunday afternoon while watching the golf, I struck on an old idea of using the Ranking Module to ferret for Wolf Packs, i.e, stocks that are hunting in packs.

Wolf Pack 

I applied the 0a Key to All Securities and was struck by the number of Chemical Specialty stocks that were high up on the list.  I counted ten in the top 20.  The Combo Rank attached to this filter brings stocks with strong 1 and 5 Day Industry Price gains to the top, so one knows we are working with stocks with strong current momentum.   In addition the Group Rank using Ian Slow is a healthy 92, so it has long term Group Rank Performance.  However, here is a group that has recently been trashed, but is coming out of the ashes.  So I applied the Ranking Module view using Accel/Vel/RS as the view.  The crafty thing is to scrunch the view down to just show the single Industry Group one is interested in the view as shown below: 

Ranking Module 

Note that the setting for the numbers shown is for the Percent Change for the past three weeks, and one can quickly see that although the group has been trashed, it is rising from the ashes very rapidly.  Here are the top 10 stocks for Chemical – Specialty which look very powerful for beaten down stocks:

Warehouse View

Understand that this is a Case Study to help you use the HGSI Software tools to ferret for strong Wolf Packs, which may provide opportunities if the market settles down.  Just look at the number of Box 7 stocks – there are seven of them.  Also note the %E/P, Rev/Share and ROE for all these stocks.  No wonder they have high ERG!  It’s always “Your Call”.

Best Regards, Ian.

 

2 Responses to “Stocks are like Wolves, They Hunt in Packs”

  1. Theresa Says:

    Hi Ian,

    Wow! Two posts on Sat. & another one today, Sunday. No one could have taken better care of his disciples than you!

    We’ve been out all day, otherwise I would have read it much earlier. Now I have to stay way beyond my bed time to digest your valuable guidance.

    Thank you again for your devotion to your disciples.

    Theresa H.

  2. Paul R Says:

    Ian,

    Which combo did you use to get this specific sort of this group?

    Thanks,

    Paul R

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