How I Build My Weekly Watchlist

Hi everyone,

I hope you all are having a great weekend! In this short article I’ll be walking you through the specific weekend routine that I use to build my weekly watchlist.

This article is brought to you by Deepvue, which is the Stock Market Research Platform that I am part of the core development team for. We are using our trading knowledge to save traders time during their workflows and allow them to analyze both technical and high quality fundamental data at the same time.

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Now let’s dive into my routine ↓

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My overall goal here is to get a sense of what groups are strong/weak, are seeing rotation, starting trends, or the trends are weakening. I will select stocks that are in strong trends or are setup to start trends and put them in my Universe List.

How I Organize My Lists

Here’s a quick definition guide of my lists each week

• Universe List

  • On a weekly basis, the stocks that show up in my screens that are showing unusual strength and are either in strong trends or potentially just starting one.

  • This can be around 100- 200 stocks depending on the market

• Weekly Wide list

  • From my Universe list I go through the process of focusing on the strongest stocks that I deem leadership quality and the best setups for next week.

  • I go through multiple cuts, each time getting stricter with what I could consider potentially actionable next week.

  • In the end this list combines current leadership with the best setups I’ve found considering both technicals and fundamentals (Group, story, EPS/Sales Growth & Estimates)

  • This list can be 20-30 ish stocks depending on the strength of the market and the number of setups

  • I will set alerts on all of these to the topside and bottom side of ranges and key levels

• Weekly Focus List

  • Solely the best stocks I could envision myself buying next week.

  • I keep track of potential entry points, Where I could manage my risk and how far % wise that is, and what position I would want to use for each.

  • This is usually around 10 stocks but depends on the market and the opportunities available that week.

• Daily Focus list.

  • The best stocks from my focus list that are actionable tomorrow/Today

  • I want to focus on the leadership here if possible.

  • This is usually 3-5 stocks. I double check that I have relevant alerts set

I begin the watchlist creation by looking at the following 4 groups of stocks which serve as the inputs.

• The Deepvue Universe Screen ~ 500 Stocks

  • This is a wide screen we are developing for Deepvue users to serve as a algorithmically generated list of stocks to fish in. To save them time by preselecting stocks of a certain quality, liquidity, trend, RS, and Industry Group Strength.

• TraderLion Gappers Watchlist ~ 40 ( depends on market)

  • A list curated for TraderLion Private Access members focusing on stocks with recent significant gaps.

• TraderLion HTF Watchlist ~ 15 (depends on market)

  • A list curated for TraderLion Private Access members focusing on stocks with extremely strong momentum

• TraderLion IPO Watchlist ~ 40 (depends on market)

  • A list curated for TraderLion Private Access members focusing on young IPOs with charts shaping up

Starting the Process - Building the Universe List

First let’s go through the DV Universe screen which this week is 544 symbols long.

I sort the list by first the industry and then by 3 Month RS Score so that as I go through, I look at each industry together and look at the strongest stocks to the weakest stocks in that group. I learned this from Ross Haber.

If a group appears very strong all together or appears to be setting up I take a note of that as a potential leadership group (PLG).

As I spacebar through the stocks this is what my screen looks like:

I have a daily chart on the left of the chart and a weekly on the right so I can look at both timeframes at once. These are the timeframes most relevant for my setups, you should choose what is applicable to yours but I highly recommend looking at multiple timeframes at once to gain context.

Underneath I have the EPS and Sales reports going back 10+ Quarters (Bolded Headers) and estimates going forward (faded headers) 10 Quarters as well if available. I can quickly hover over any report as shown to gain additional inside to that quarters EPS or Sales report.

To the left of the chart I have the columns set up. I can drag the chart left or right to see more of less columns but I usually keep it about here so I can just see the 3 Month RS Score. These data columns are fully customizable and you can choose between over a hundred data points to include and customize their order.

At each stock, I first look at the daily chart, see if it is tightening, in trend, choppy, above or below KMAs and overall showing strength or weakness. I also look at the weekly chart to see the overall pattern.

If it is a weak stock I almost immediately go to the next one but if it is setting up I’ll spend a bit more time looking at the chart and fundamentals and if I like it I check off its box to select it and add it to the Universe List so I’ll review it further.

I follow this process as I go through all the stocks that pass through the screen.

Groups that stood out to me this week (I liked a lot of stocks in them) were

• Biotech

• Building related stocks Strong or setting up

• Medical specialties among strongest

• Bio Pharma Acting Well

Building the Weekly Wide List

After going through the DV Universe screen and the TL Watch I sort the Universe List by 3 Month RS Score and go through the charts. Stocks with the strongest combination of setup, technicals, and fundamentals I add to the Weekly Wide List.

For a stock to be added I have to be able to envision an actionable buy on strength or pullback where I can manage risk that could happen in the next 3-4 days of trading.

My first cut yielded around 50 names

ABT ALGN AMRK APP ARCT ASRT AUPH AXON BMEA CDLX CERT CRM CXM DKNG DUOL DXCM EHTH EXAS FATE FCNCA FNV FSLR FSLY IONQ IOT ISRG MLTX NAAS NABL NVDA NVTS ONON OSCR PACB PACW PVH ROIV SCYX SPOT SQSP STNE TGTX TMDX VERX VNT WAL WFRD MBLY GNLX

Here I was mostly looking at the chart pattern. After looking more at liquidity, overall pattern, character of each stock, and fundamentals here is what I arrived for the final cut:

ALGN ARCT AXON BMEA CDLX CRM DKNG DUOL DXCM FNV FSLR FSLY IOT ISRG ONON PACB SCYX SPOT SQSP STNE TMDX VNT MBLY GNLX

Weekly Focus List

After narrowing it down further here is what I arrived at:

ALGN BMEA DUOL DXCM FNV FSLY IOT ISRG ONON SCYX SPOT MBLY GNLX. Note upcoming EPS Report Flags on a few.

I look at daily and 65minute timeframes as I go through these.

ALGN - Powerful off lows, first base and potential Stage 2 BO. 359 pivot on volume

BMEA - Huge Volume Gap now short consolidation, Pullback to 27.5 or HVC BO

DUOL - EPS Gapper strong IPO, HRV Push through 142.50 pivot or LRV PB to 21ema

DXCM - nice long base, ideally few days rest, push through handle pivot on volume

FNV - To watch gold stocks, Break of DTL and push off 21ema

FSLY - Nice strength and volume off lows, Push higher through 16.67

IOT - Ideally few days rest or shakeout below base pivot, push higher through 22.25

ISRG - Gapper, mature name, push higher through 301

ONON - EPS gapper on large volume. Pullback to 32 pivot

SCYX - Chart play, speculative, push through 3.28

SPOT - push through 135, I like the estimates.

MBLY - push through 44.82. Stair Stepper?

GNLX - chart play, speculative. Inside day Bo or 30 level.

With any of these I would be managing my risk tightly and logically, never letting it slip more than 5% from my entry and ideally much less than that. I’ll position size higher on names I view more as leaders and have higher conviction on.

Daily Focus List

This I finalize Monday morning but it would likely be

DUOL BMEA IOT DXCM

Summary

So that is a quick run through of how I sort through hundreds of stocks to gain insight about group action, what’s leading, and ultimately build my focus list and plan for the next week.

Deepvue makes this process much more efficient and we will be introducing features like the ability to combine WLs and Screen results together that will make it even better. I encourage you to check it out: here: https://deepvue.com/

Find a routine that works for your style and schedule and stick to it! Let me know if you have any questions!

To help support my efforts, if you found this valuable and are reading until the end please share it on twitter! Thank you!

Cheers,

Richard