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Building A Stock Screener Profile to Match Your Investing Approach

Building a stock screener profile can be a useful way to find stock ideas catered to a specific investing approach. That’s because stock screeners allow users to combine precise criteria that filters through the stock universe. The tricky part for some investors is choosing the criteria to match a strategy.

To help, here are four strategies relevant to today’s market, and ideas for building a stock screener profile to match:

SCENARIO 1: I want to find stocks that will continue to prosper regardless of politics in Washington.

For those worried about politics, or just looking to find stocks set to rise independent of political decision-making, investors can start by building a stock screener profile that includes large-cap and mid-cap stocks. Good financials, strong earnings consistency, and a low price-to-earnings ratio would be good criteria for finding stocks not wholly dependent on political conditions.

An investor might also want to include strong relative strength to the market and strong Chaikin Money Flow in this kind of screener.

SCENARIO 2: I want to find bullish stocks on the verge of breaking out.

For investors looking to find stocks poised for a breakout, try building a stock screener profile that incorporates small-cap or mid-cap stocks. It can be useful to look at stocks with a price level above its long-term trend.

Another good sign is relative strength that is weak, but growing stronger. Finally, look at stocks that are currently oversold for an indication that it’s likely to break out in the near future.

SCENARIO 3: I just want to find strong stocks in strong industry groups.

Many investors are simply looking to follow the classic wisdom of looking for strong stocks in strong industry groups. To build this type of screener, investors may want to start with large and mid-cap stocks in the strongest industry groups. Chaikin Analytics users can do this by setting their Stock Universe to “Strongest Industries.”

Chaikin Analytics users would want to filter for Bullish Power Gauge Ratings and any Buy Signal within the last week. Strong Chaikin Money Flow and strong relative strength to the market would also help investors find strong stocks in this profile.

SCENARIO 4: I want to find highly volatile stocks.

For options traders and others looking for volatile stocks, start by building a screen with high beta values. Beta measures a stock’s volatility relative to the market. It’s also helpful to focus on large-cap stocks with high volume.

For those looking for volatile bears, stocks with strong short interest is a great criterion because it means that short sellers are selling this stock.