Coverage Rankings Explained

My ratings process primarily serves to assist in my daily trading and portfolio management duties across client accounts and managed-account strategies.  I maintain technical ratings or rankings on over 200 stock charts at all times and generally traverse and review my rankings 1-2 times per day.   I also make ad-hoc adjustments as I go through my trading day.  Feel free to use what I share as a supplement to your own research.  Be aware that there is more that goes into my approach than I have time to share.  Do not buy/sell/hold strictly off of my analysis of current coverage.  Email questions to me at ryan@jerseyshoreinvest.com and please allow me a few days to respond.  If time-sensitive, please call my office at 866-727-1532.

Thank you,

Ryan D. Morse, CMT CFP®

COVERAGE GUIDELINES:

• Coverage universe limited to ~250 charts (stocks, ETFs, etc.)
• Strict filters applied to protect against unfavorable stocks entering my coverage.
• Each Tier has multiple groups (relative strength within the tier.)
• Upgrades/downgrades are limited to one move per position, per iteration.
• Categorization dependent on multiple factors, including:
  • technical analysis
  • current position P&L
  • relative strength in coverage
  • broader market conditions
• Broader market conditions typically drive trading bias throughout the day.
• I rarely add via discretion to positions in companies currently in the earnings bin, nor do I look to adjust standing buy/sell orders in these companies.

TRADING BIAS:

I’ll assign an intra-day bias to my trading at various points throughout the day.  This is usually influenced by short-term analysis of the broader market and the equity futures.  My bias will represented as:  Bearish, Bearish-to-Neutral (or v/v), Neutral, Neutral-to-Bullish (or v/v), Bullish.  This “bias” does not represent my positioning.  I could be 100% long equities on a Friday afternoon and say that my bias is bearish… meaning Monday  I am coming in biased toward raising cash / protecting profits before I do anything else.  It would not necessarily mean I went short, nor would it necessarily mean that I already had or would actually end up reducing exposure.  Think of it as an immediate-term directional lean allowing me to know exactly what actions get priority at that moment.

COVERAGE GLOSSARY:

_ACCUM = Buy, Build, Accumulate

_HOLD = Hold, Hold with Stop

_DIST = Sell, Stop Out, Distribute

_EARN = Companies reporting earnings within a specified number of days.

_INIT = Recently initiated, yet to earn to T1 status (T2 only.)

_INIT_IGO = Recently initiated and In Good Order (T2 only.)

_INIT_NIGO = Recently initiated but Not In Good Order, lagging expectations (T2 only.)

_PRIME = Primed for breakout (T2 only.)

_PEH = Post-Earnings Hold Bin.  Typically, 3 trading days or a clear directional bias.

_SUPER_PRIME = Currently breaking out, post-breakout or last-closes at 52 week or all-time highs.  (T2 only.).

_WATCH = Breakout potential basic watch (T2 only.)

ER = Earnings Report (date, days until, etc.)

LC = Large-Caps (Anything over $30B in market capitalization in my system.)

MC = Mid-Caps (Anything under $30B in market capitalization in my system.)

NASDAQ = Nasdaq-listed securities

NYSE = NYSE-listed securities

T1 = TIER ONE = Positions we currently have on with post-initiate sizing or positions we have recently exited (with no sustained technical breakdown or coverage downgrades.)

T2 = TIER TWO = Fresh setups and recent initiates.  Charts ready to be bought/added to on the right action.  I only share the top 2-3 groups (i.e. strongest) in this tier.

T3 = TIER THREE = Quality companies w/ charts on the mend, under-performing companies headed for dropped coverage.  Holding tier for stocks we still want coverage on for one reason or another.  I don’t own these names and I don’t share them, charts carry dead money risk.

*LEGAL DISCLAIMER

WE SHARE THESE RATINGS TO ENCOURAGE EDUCATION AND ENGAGEMENT WITH CLIENTS AND THE INVESTING COMMUNITY.  THESE ARE NOT ADVICE OR RECOMMENDATIONS.  RANKINGS BASED ON TECHNICAL ANALYSIS ARE ONLY ONE PART OF OUR PORTFOLIO MANAGEMENT PROCESS.  PLEASE DO NOT ATTEMPT TO BUY/SELL/HOLD STOCKS, NOR MANAGE A PORTFOLIO BASED ON THESE RATINGS ALONE.   IF YOU HAVE QUESTIONS ABOUT ANYTHING RYAN COVERS PLEASE FEEL FREE TO ASK.