Cracking Sectors: New Tips for Industry Analysis

11/18/2007 12:00 am EST

Focus:

Craig Shipman

Director of Customer Training, Worden Brothers, Inc.

In his workshop, Craig Shipman highlighted some of the features and uses of Worden’s Blocks, Version 3, trading software.

He took the audience, step-by-step through a series of industry analysis indicators, including price histories of all applicable stocks, and then demonstrated how to plot patterns relative to all stocks in that sector, to get a sense of whether your selected stock was out- or under-performing.

Craig created an example screen for looking for stocks with hidden strengths, using relative strength indicators, then layering other conditions to narrow the selection.
 
He then showed attendees how to automatically set-up their parameters, as well as a watch list, so that they don’t have to recreate them each time.

One feature Craig highlighted was the ability to rank stocks in an industry, and then rank the industry itself. He also demonstrated how to search for the highest- and worst-ranked companies as well as the best and worst industries, using a variety of indicators, including moving averages and institutional and insider activity.

The program features 239 breakdowns by industry and sub-industry and weights by market cap.

Craig stated that the new version of Blocks will also include the ability to backtest.

In closing, Craig noted that Blocks has no opinion; it doesn’t tell you how to make money in the market, but it does give you all the tools, so you can make the buy/sell decision. He told traders he thought they would find the program very flexible because it doesn’t pigeon hole you into decisions.

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