Creating the Watch List

In the old days prior to the advent of screening software, chartists subscribed to a weekly chart service in the form of a printed book. The chartist would manually examine each chart one by one in order to create a watch list. While time-consuming, this one-at-a-time method is still used to create the Marder Watch List. Its benefit is that it affords a beneath-the-surface look at the market that could not be attained by just running a scan.

First, on a weekly basis, a database of about 7,500 stocks is filtered for market cap, price, volume, and relative strength using the following criteria.

Second, the roughly 1,200 issues produced by the above scan are then augmented each evening by another scan based on that day’s activity, as shown below.

 

 

 

A third scan is sometimes run on recent new issues that came public during the current and previous calendar years.

On a weekly basis, the roughly 1,200 issues are then examined one chart at a time in order to produce the Marder Watch List. In a weak-to-flat market, the watch list might consist of 20 names, whereas in a strong market the watch list might range from 40 to 100 or more stocks. Each evening, the trader scrolls through the watch list in search of actionable “issues of interest.” These are then highlighted and entry points added as alerts to a quote service.

Premium plan subscribers to The Marder Report may download the Marder Watch List as an Excel file. This file is updated a few times each week, and contains a time and date stamp for subscriber convenience.

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