We're Adding The IBD50 To Our Equity Research Coverage

JC Parets
July 18, 2018

We're in the middle of a bunch of really exciting things here at All Star Charts. We're growing as a team and as a community of investors. This summer we brought on our new Chief Options Strategist Sean McLaughlin and added new Technical Analyst Tom Bruni. With this growth comes a lot more data that and analytics that we get to dive into every day. Some of the stuff we're building is so cool and beyond anything I thought was possible 10 years ago. We're living in some pretty amazing times and I'm really enjoying using and exploring the new technology.

Earlier this year I was approached by Investor's Business Daily, who is headquartered in Los Angeles, CA. When I was 21-22 years old and first getting into markets, this was the newspaper I was reading every day on the bus from Hoboken, NJ into New York City and back. It was the Technical Analysis discussed in this publication that truly inspired me to go pursue my CMT and learn how to analyze the behavior of the markets. The folks at IBD said that they read my work, follow me on social and just wanted to chat and show me what they were up to. 

After a few introductions to team members at IBD and explanations of some of their new products, it was clear that I needed to dive into this some more. Their use of Relative Strength and Momentum is something that can't be ignored. I understand there are some other variables they incorporate, but for me those are the biggest 2 in the world, and they do it well.

I quickly got back to my office after meeting with the IBD crew and started building my workbook of charts of the IBD50. There are many stocks on this list that we're not already including in our Premium Chartbook.  So it is with great pleasure that I announce the addition of the IBD50 to the Chartbook at All Star Charts. We're doing a lot of interesting work with our software providers Optuma and incorporating some of the IBD50 data into our models just makes a ton of sense. We're already getting a lot of value out of it.

Premium Members have access to both Weekly and Daily timeframes of each of the 50 components in the index with annotations and targets. There are 103 charts total, because we include analysis on the Innovator IBD50 ETF $FFTY as well.

Here is a weekly chart of the IBD50 ETF half way to its target near 41. This 41 level represents approximately 261.8% of the 2015-2017 consolidation:

Now look at the IBD50 compared with the S&P500. To me, if the IBD 50 is above the June lows (March highs), then we continue to want to err on the long side of stocks, both S&Ps and IBD50:

What a great list of stocks to be able to generate ideas! Check out IBD50 here. We are adding the IBD50 workbook with notes and analysis for Premium Members and will be rolling out quantitative analytics on the new Chartbook as well.

Email me and let me know what you think!

JC

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