MACD-ST

Developed by Gerald Appel, Moving Average Convergence/Divergence-Short Term utilizes various exponential moving averages of a stock's closing price to generate buy and sell signals. Exponential moving averages assign greater weight to the most recent price data and therefore is more sensitive than simple moving averages. MACD consists of the differential line and the signal line. The differential Line is constructed by measuring the difference between two exponential moving averages, a 12- and 26-day time period. The signal line is a 9-day exponential moving average of the differential line.

MACD-LT

Moving Average Convergence/Divergence-Long Term was developed by Gerald Appel. MACD utilizes various exponential moving averages of a stock's closing price to generate buy and sell signals. Exponential moving averages assign greater weight to the most recent price data and therefore is more sensitive than simple moving averages. MACD consists of the differential line and the signal line. The differential line is constructed by measuring the difference between two exponential moving averages, a 38- and 78-day time period. The signal line is an 18-day exponential moving average of the differential line.

Market Cap

Market cap refers to the price of a stock multiplied by the number of shares outstanding, shown in millions.

Market Edge Bottom Fishing Stocks

A Bottom Fishing approach is designed to identify stocks that have been beaten down for whatever reason and are trading at or close to their 52-week low. This can be a dangerous strategy since statistics show that the majority of stocks that are making new 52-week lows continue to make new lows as the company's troubles become apparent to the street. The ideal situation is to isolate stocks whose fundamentals are improving, are trading near their lows, but have been under accumulation for a period of time as the smart money crowd establishes positions in anticipation of a turnaround.

In order to qualify as a bottom-fishing candidate the company needs to have the following characteristics:

• The Close is above 10.
• The Close is within 20% of its 52-week low.
• The current ratio is greater than 1.

The Market Edge "Prime" Fish also possess the following technical characteristics: The stock has An Early Entry Long Opinion and the average daily volume is greater than 100,000 shares per day.

Market Edge CANSLIM Stocks

Developed by William O'Neil of Investor's Business Daily, CANSLIM is a method of screening for stocks based on the following seven characteristics. It should be noted that typically, only 2% of the database will qualify as buy candidates using these screening applications. In addition, when the Market Edge "Market Posture" is bearish, there will not be any selections since the M part of the formula requires a favorable market environment.

In order to qualify as a Market Edge CANSLIM Stock, the following fundamental characteristics must exist:

The Close is above 10, the Close is within 20% of its 52-week low and the current ratio is greater than 1.

C = Current Earnings: Quarterly earnings per share are up 25% or more.

A = Annual Earnings: Five year average compounded earnings growth rate is greater that 24%.

N = New Highs: The stock is within 15% of making a new 52-week high and is breaking out of a period of consolidation.

S = Shares Outstanding: The number of shares outstanding is less than 50 million shares and there has been a recent increase in trading volume.

L = Leading Stocks: The company is a market leader reflected by a Relative Strength Value (RSV) of 80 or higher. A RSV of 80 means that the stock outperformed 80% of all other stocks in the data base during the past year.

I = Institutional Ownership: Institutional sponsorship should be minimal but there should be at least one major institution with a sizeable position in the stock.

M = Market Conditions: The Market Edge "Market Posture" should be Bullish. During periods when the posture is bearish, there will not be any selections.

In addition to the above criteria, the following technical characteristics must be present: The stock's is regarded as a Long, the stock has a bullish Up/Down Volume Ratio and stock average volume is greater than 100,000 shares per day.

Market Edge Growth Stocks

Growth stocks are companies that are experiencing accelerating earnings and sales growth on a quarter to quarter basis as well as over an extended period of time. Understand that a company can boost its earnings per share (EPS) results by cutting costs, and occasionally, by divesting money-losing operations. But such strategies can go just so far. Over prolonged periods of time, strong rates of EPS growth start with strong rates of sales growth, which is why its inclusion in the formula is necessary to spot growth stocks early on in the process.

In order to qualify as a Market Edge Growth Stock, the following fundamental characteristics must exist:

• The EPS (earnings per share) growth rate for the current quarter is greater than the trailing twelve month (TTM) EPS growth rate.
• The TTM sales per share growth rate (SPS) is greater than the thee-year cumulative average SPS growth rate.
• The TTM EPS growth rate is greater than the TTM SPS growth rate.
• The companies effective tax rate is greater than 24%.

In addition to the above criteria, the following technical characteristics must be present: The stock has a Long Opinion and the Score is greater than or equal to -1, the Up/Down Volume Ratio is bullish, the average daily volume is greater than 100,000 shares per day and the ADXR reading is greater than 20, signaling a strong trend is in place.

Market Edge Momentum Stocks

The quarterly earnings of these companies are growing at increasingly higher rates. Momentum stock investing can be very rewarding but be forewarned that it is also very risky. A bad quarter or negative earnings warning can see the stock's price plummet very rapidly.

In order to qualify as a Market Edge Momentum Stock, the following fundamental characteristics must exist:

• The EPS growth rate for the current quarter is greater than the trailing twelve month (TTM) EPS growth rate.
• The TTM sales per share growth rate (SPS) is greater than the thee-year cumulative average SPS growth rate.
• The TTM EPS growth rate is greater than the TTM SPS growth rate.
• The price/earnings growth ratio (PEG Ratio) is less than 1.
• The companies effective tax rate is greater than 24%.

The PEG Ratio is calculated by dividing the P/E ratio by the projected earnings growth rate over the next year. If a stock has a P/E of 14 and an estimated growth rate of 15%, the PEG would be .93 meaning that the stock is trading at a discount to its growth rate. PEG is considered particularly helpful in valuing small and mid-cap growth stocks since they are valued primarily on how fast they are expected to grow earnings. PEG ratios don't help in valuing companies that are losing money. They are considered less useful in assessing cyclical stocks, as well as companies in industries like banking, oil or real estate where assets are a more important determinant of value.

In addition to the above criteria, the following technical characteristics must be present: The stock is rated as a Long, the stock has a bullish Up/Down Volume Ratio, the average daily volume is greater than 100,000 shares per day and Relative Strength is greater than 1.04.

Market Edge Short Sale Candidates

Fundamental Short Candidates are former Momentum stocks whose earnings have stopped growing at an increasingly higher rate. Investing in momentum stocks is risky since when the momentum reverses the stock's price can plummet very rapidly. Momentum stocks are great on the way up but once they disappoint they can become good short sale candidates.

In order to qualify as a Short Sale Candidate the company needs to have the following characteristics:

• The EPS (earnings per share) growth rate for the current quarter is less than the trailing twelve month (TTM) EPS growth rate.
• The TTM EPS growth rate is less than the TTM SPS growth rate.
• The price/earnings growth rate (PEG Ratio) is greater than 1.

The PEG Ratio is calculated by dividing the P/E ratio by the projected earnings growth rate over the next year. If a stock has a P/E of 20 and an estimated growth rate of 15%, the PEG would be 1.33 meaning that the stock is trading at a premium to its growth rate.

Market Edge Value Stocks

Value stocks are companies that are trading at a discount to the market relative to its future earnings potential. Typically these companies have had a series of problems, which has caused them to fall out of favor. The key in selecting these stocks is to identify those whose problems were temporary, the core fundamentals of the company remain strong and the negative situation is turning around.

In order to qualify as a Market Edge Value Stock, the following fundamental characteristics must exist:

• Price to earnings ratio (P/E) ratio well below that of the market.
• The total assets of the company exceed $50,000,000
• The price is less than 4 times the book value.
• The current ratio is greater than 1.
• The price to cash flow is less than 12.
• The percentage of long term debt is less than 25% of the companies capitalization.
• The price to trailing twelve months sales per share is less than 6.

In addition to the above criteria, the following technical characteristics must be present: The stock has a Long Opinion, the Up/Down Volume Ratio is bullish, the average daily volume is greater than 100,000 shares per day and the ADXR reading is greater than 20, signaling a strong trend is in place.

Money Flow (MF)

Money Flow is an oscillator tracks the flow of money into or out of a stock. Readings below 20 indicate that a stock is oversold, a Short term bullish condition while levels above 80 suggest an overbought bearish condition. Money Flow is calculated over a 14-day period.

MF Slope

The MF (Money Flow) Slope identifies the direction in which the MF is pointed. Although the raw MF value is a valuable overbought/oversold indicator, it is the direction or Slope of the indicator that forewarns of a change of trend in a stock's price.

Momentum Index

The Momentum Index is designed to measure market divergence by comparing the performance of eight, non-Dow Jones Industrial Average Indices to that of the Dow Jones Industrial Average. Divergence is a technician's term that measures whether the DJIA is performing better or worse than the majority of the other market indices.

Momentum Stocks

Momentum stocks are turbo charged growth stocks. The earnings of these companies are growing at increasingly higher rates. Momentum stock investing can be very rewarding but be forewarned that it is also very risky. A bad quarter or negative earnings warning can see the stock's price plummet very rapidly.

In order to qualify as a Momentum stock the company needs to have the following characteristics:

• The EPS growth rate for the current quarter is greater than the trailing twelve month (TTM) EPS growth rate.
• The TTM sales per share growth rate (SPS) is greater than the thee-year cumulative average SPS growth rate.
• The TTM EPS growth rate is greater than the TTM SPS growth rate.
• The price/earnings growth ratio (PEG Ratio) is less than 1.
• The companies effective tax rate is greater than 24%.

The PEG Ratio is calculated by dividing the P/E ratio by the projected earnings growth rate over the next year. If a stock has a P/E of 14 and an estimated growth rate of 15%, the PEG would be .93 meaning that the stock is trading at a discount to its growth rate. PEG is considered particularly helpful in evaluating small and mid-cap growth stocks since they are valued primarily on how fast they are expected to grow earnings. PEG ratios don't help in the evaluation of companies that are losing money. They are considered less useful in assessing cyclical stocks, as well as companies in industries like banking, oil or real estate where assets are a more important determinant of value.

Mo Price Chg % (% Monthly Price Change)

The percentage change of the current closing price compared to the close twenty days ago.

Mo Volume Chg % (% Monthly Volume Change)

The percentage difference between the previous twenty days average volume and the preceding twenty days average volume.

Moving Averages (MA)

Moving Average (MA) is an indicator that calculates the average value of a stock's closing price over a specified period of time. Market Edge calculates the value of the 10, 21, 50 and 200-day simple moving average. The Price column is the last value of the SMA. The % column is the percentage that the closing price is above or below the SMA. If the percent is above 100%, the stock closed above the SMA. Conversely, readings under 100% mean that the stock closed below its SMA. The slope column indicates whether the SMA is pointed Up or Down.