# JD1 LSE rankings - Week ending Oct 9th

So for the last couple of months, I’ve been working on creating my own personal screener (methodology placed under a header in the methodology heading, should anyone want to look further), that I thought I may as well share with the all wise and seeing T212 community

Methodology/Score Calculation

Average Score

To get the average score, I use a method based around the Ichimoku cloud calculation (Ichimoku - Investopedia)

I have collected the historical WEEKLY data over the last year for every stock.

Weekly data has been chosen to provide a greater base of reliable data, the final figure is collected after the close of the market on Friday, according to the Excel Stock feature.

The calculations include

The Conversion line: The highest, and lowest values, in the last 9 closing periods, divided by 2

The Base line: The highest and lowest values, in the last 26 closing periods, divided by 2

Leading Span A: The Conversion + Base / 2

Leading Span B: The maximum and minimum value, of the last 52 closing periods, divided by 2

In comparison to the traditional ICHI calculation, I have omitted high and low intraday figures.

On a chart, the presence of Line A, and Line B would produce the basic cloud image. We are predominantly looking for stocks with a price that is above the cloud.

The highest figure of the two spans (the top of the cloud), is then used, with the current SP to calculate an average (e.g if the SP is 10, and the highest figure of both A/B is 5, then the average is +100% )

Trend score

If the figure of Leading Span A is above B, we are saying the trend is UP, and if it is the opposite, we are saying the trend is DOWN. A holding that is in an UP trend is given an additional small score, over a holding that is in a DOWN trend.

So its the Average score + the RSI score + the Trend score, that gives the final score, note this is universal for all sectors

RSI Score

The RSI is calculated using the standard RSI method, over 14 previous periods, with the score being calculated in relation to the RSI figure of 70 (overbought)

E.g A holding with a RSI of 70 is a score of 0, while a holding with an RSI of 30 scores 0.57. Anything above 70 is given a minus score.

All rebalancing, will be consistent and will be conducted on the open of the relative Monday morning, this allows the decision making to be made consistently.

Issues

Volume/Liquidity

Some stocks that are going to place high on the rankings, don’t have fantastic volume/spread characteristics, I will need to make decisions on whether to buy certain holdings, on this metric.

I am not trusting the system blindly, each decision will be looked at further.

I also want to avoid using these metrics in the score calculation for now, as I am wary of putting too many variables in play

Fractional capabilities

T212 is not quite there yet with all of the holdings being fractional, and thus going in the pie, so hopefully as time goes on, this will only improve.

In addition, all orders will be market orders.

Methodology

It is not mathematically pure, of that I know. Please feel free, if you think of anything that can help or assist to make the methodology more reliable, but this an admission, that mathematically perfect, is it not.

Nature of the Stock Market

The nature of the market, any external factor can throw everything off course within a moment,

It also must be noted, that as soon as the market opens on Monday morning, the data loses its 100% accuracy, as such this is why data is collected and confirmed on Friday, and looked at over the weekend.

FX

All US stocks are subject to fluctuations of the FX rate

Measures of Success

I am simply looking to be profitable every month, and keep losses inside low % ranges

Any profit made at the end of the cycle, will be added into the pie on rebalancing.

The screener was designed to rank and weight stocks based on Growth, and Relative Strength, so that I could implement both mid-long term strategies, and short term (swing trades). I can filter between the two if needed.

Mid-long term

I’m looking to create pies with specific sectors that have a healthy % of promising growth in the figures, in which I have done in the US Tech, and Financial sector, to positive success so far, very early days though! I’ve shared the links below.

To start a pie, I’m looking primarily for + Growth, holdings that are trending UP, with the average RSI below 70 (as an entry point!). There is no maximum amount of holdings, I will fill the pie with as many of the qualifying stocks as I can, up to the 50 permitted. I’m still experimenting in regards to balance %.

I don’t have any LSE pies at the moment, but am looking at Tech and Consumer sectors, as potential in the future, or even potentially a ‘LSE PIE’, in its entirety.

I will aim to review, rebalance and update each Pie on a monthly basis.

Short-term

I’m looking for edges in regards to stocks that have positive growth, but have fallen in regards to the RSI index indicating that there may be an opportunity for a reversal,

You will notice I’ve omitted healthcare completely, as I’m not sure this is the right strategy for the majority of that sector, at the moment, I may run more tests.

I’ve also combined some sectors to add balance (i.e Communications and Utilities, Industrials and Materials), due to depth of the exchange.

I’m just sharing LSE stocks at the moment, to avoid clutter, but can share relative US tables, if requested.

As always, further research/decisions will be taken before investment, I’m not going to blindly trust my own system. Nothing posted is advice!

All opinions and ideas are welcome, share thoughts about certain stocks, or what you feel the positives/negatives of the system are.

Current pies - 1 week old

US TECH - equal balance: + 6%

US FINANCE - split balance: + 0.92%

1 Like

We’ll start with the Overall Growth Rankings (Top 20), that is before any weighted calculations are made

Simply, the holdings with the biggest growth numbers.

# Top 20 - Growth TICKER SECTOR AVG TREND RSI
2 WILLIAM HILL PLC (XLON:WMH) WMH CONSUMER 28.31% UP 71.37
3 XAAR PLC (XLON:XAR) XAR TECH 27.15% UP 74.43
4 G4S PLC (XLON:GFS) GFS CONSUMER 24.85% UP 73.34
5 MOTHERCARE PLC. (XLON:MTC) MTC CONSUMER 24.15% DOWN 70.71
6 HALFORDS GROUP PLC (XLON:HFD) HFD CONSUMER 23.06% UP 71.52
7 LAMPRELL PLC (XLON:LAM) LAM ENERGY 22.21% UP 61.44
8 LUCECO PLC (XLON:LUCE) LUCE IND.MAT 22.17% UP 70.71
9 MPAC GROUP PLC (XLON:MPAC) MPAC IND.MAT 21.80% UP 69.56
10 PETS AT HOME GROUP PLC (XLON:PETS) PETS CONSUMER 21.67% UP 72.53
11 CERES POWER HOLDINGS PLC (XLON:CWR) CWR ENERGY 21.53% UP 66.79
12 TYMAN PLC (XLON:TYMN) TYMN IND.MAT 21.17% UP 77.54
13 GVC HOLDINGS PLC (XLON:GVC) GVC CONSUMER 20.65% UP 70.73
14 CLIPPER LOGISTICS PLC (XLON:CLG) CLG CONSUMER 20.49% UP 80.16
15 888 Holdings Public Limited Company (XLON:888) 888 CONSUMER 19.95% UP 78.71
16 ROYAL MAIL PLC (XLON:RMG) RMG IND.MAT 19.71% UP 65.19
17 WPP PLC (XLON:WPP) WPP COMMS.UTIL 19.55% DOWN 52.17
18 TREMOR INTERNATIONAL LTD (XLON:TRMR) TRMR COMMS.UTIL 19.41% UP 67.31
19 WATCHES OF SWITZERLAND GROUP PLC (XLON:WOSG) WOSG CONSUMER 19.30% UP 69.37
20 BURFORD CAPITAL LIMITED (XLON:BUR) BUR IND.MAT 18.96% UP 70.58

Snapshot figures - All holdings

Trending Up - 207 (43%)

Trending Down - 271 (57%)

Average RSI - 51.86

And for balance, the bottom 10

# Bottom 10 - Growth TICKER SECTOR AVG TREND RSI
478 TULLOW OIL PLC (XLON:TLW) TLW ENERGY -83.06% DOWN 34.64
477 HAMMERSON PLC (XLON:HMSO) HMSO RETAIL ESTATE -79.34% DOWN 34.17
476 PREMIER OIL PLC (XLON:PMO) PMO ENERGY -78.11% DOWN 29.60
475 CAPITAL & REGIONAL PLC (XLON:CAL) CAL RETAIL ESTATE -77.82% DOWN 21.87
474 CINEWORLD GROUP PLC (XLON:CINE) CINE CONSUMER -77.12% DOWN 32.87
473 REVOLUTION BARS GROUP PLC (XLON:RBG) RBG CONSUMER -75.76% DOWN 30.23
472 PETRA DIAMONDS LIMITED (XLON:PDL) PDL IND.MAT -70.45% DOWN 41.50
471 SAGA PLC (XLON:SAGA) SAGA CONSUMER -69.32% DOWN 31.94
470 CAPITA PLC (XLON:CPI) CPI RETAIL ESTATE -68.94% DOWN 35.00
469 PHAROS ENERGY PLC (XLON:PHAR) PHAR ENERGY -68.41% DOWN 32.78

Highlighting the fact that we don’t just want to be looking at the RSI figure, as there is a lot more beneath the surface.

Moving on towards our weighted, and ranked system

# Top 10 - Weighted TICKER SECTOR AVG TREND RSI
1 LAMPRELL PLC (XLON:LAM) LAM ENERGY 22.21% UP 61.44
2 WILLIAM HILL PLC (XLON:WMH) WMH CONSUMER 28.31% UP 71.37
3 DCC PUBLIC LIMITED COMPANY (XLON:DCC) DCC ENERGY -12.69% UP 34.13
4 BEGBIES TRAYNOR GROUP PLC (XLON:BEG) BEG FINANCIALS 5.38% UP 51.10
5 PENNON GROUP PLC (XLON:PNN) PNN COMMS.UTIL -2.97% UP 43.83
6 CERES POWER HOLDINGS PLC (XLON:CWR) CWR ENERGY 21.53% UP 66.79
7 ROYAL MAIL PLC (XLON:RMG) RMG IND.MAT 19.71% UP 65.19
8 BOOHOO GROUP PLC (XLON:BOO) BOO CONSUMER 9.50% UP 56.03
9 EVE SLEEP PLC (XLON:EVE) EVE CONSUMER 17.30% UP 63.42
10 BRUNNER INVESTMENT TRUST PLC(THE) (XLON:BUT) BUT FINANCIALS 0.07% UP 48.34

And then moving onto specific sectors

# CONSUMER TICKER AVG TREND RSI
2 WILLIAM HILL PLC (XLON:WMH) WMH 28.31% UP 71.37
8 BOOHOO GROUP PLC (XLON:BOO) BOO 9.50% UP 56.03
9 EVE SLEEP PLC (XLON:EVE) EVE 17.30% UP 63.42
14 INTERCONTINENTAL HOTELS GROUP PLC (XLON:IHG) IHG 6.47% UP 55.00
21 DP POLAND PLC (XLON:DPP) DPP -0.85% UP 48.75
22 STOCK SPIRITS GROUP PLC (XLON:STCK) STCK -0.97% UP 48.75
24 HALFORDS GROUP PLC (XLON:HFD) HFD 23.06% UP 71.52
26 G4S PLC (XLON:GFS) GFS 24.85% UP 73.34
38 DE LA RUE PLC (XLON:DLAR) DLAR 13.36% UP 63.48
39 DEVRO PLC (XLON:DVO) DVO 1.38% UP 52.34
# Energy TICKER AVG TREND RSI
1 LAMPRELL PLC (XLON:LAM) LAM 22.21% UP 61.44
3 DCC PUBLIC LIMITED COMPANY (XLON:DCC) DCC -12.69% UP 34.13
6 CERES POWER HOLDINGS PLC (XLON:CWR) CWR 21.53% UP 66.79
27 SERICA ENERGY PLC (XLON:SQZ) SQZ -10.36% UP 40.50
42 ILIKA PLC (XLON:IKA) IKA 12.93% UP 63.26
58 SMART METERING SYSTEMS PLC (XLON:SMS) SMS -1.92% UP 50.63
76 ITM POWER PLC (XLON:ITM) ITM 6.16% UP 59.16
119 Jadestone Energy Inc. (XLON:JSE) JSE -12.60% UP 44.71
141 HOCHSCHILD MINING PLC (XLON:HOC) HOC -0.77% UP 56.27
150 AFC ENERGY PLC (XLON:AFC) AFC -11.73% UP 46.82
# Financials TICKER AVG TREND RSI
4 BEGBIES TRAYNOR GROUP PLC (XLON:BEG) BEG 5.38% UP 51.10
10 BRUNNER INVESTMENT TRUST PLC(THE) (XLON:BUT) BUT 0.07% UP 48.34
12 JPMORGAN RUSSIAN SECURITIES PLC (XLON:JRS) JRS -6.33% UP 42.84
13 GCP INFRASTRUCTURE INVESTMENTS LIMITED (XLON:GCP) GCP -2.00% UP 47.05
20 LANCASHIRE HOLDINGS LIMITED (XLON:LRE) LRE -8.72% UP 41.22
28 YELLOW CAKE PLC (XLON:YCA) YCA -4.84% UP 45.69
29 ALLIED MINDS PLC (XLON:ALM) ALM 1.95% UP 52.04
31 Greencoat Renewables PLC (XLON:GRP) GRP -3.39% UP 47.21
33 BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC (XLON:BRIG) BRIG 1.48% UP 51.94
36 International Public Partnerships Limited (XLON:INPP) INPP 0.31% UP 51.08
# Industrial.Materials TICKER AVG TREND RSI
7 ROYAL MAIL PLC (XLON:RMG) RMG 19.71% UP 65.19
18 MPAC GROUP PLC (XLON:MPAC) MPAC 21.80% UP 69.56
19 SMITHS GROUP PLC (XLON:SMIN) SMIN 4.07% UP 53.13
25 LUCECO PLC (XLON:LUCE) LUCE 22.17% UP 70.71
30 VESUVIUS PLC (XLON:VSVS) VSVS 2.91% UP 53.01
32 EVRAZ PLC (XLON:EVR) EVR 8.09% UP 58.10
35 AUGEAN PLC (XLON:AUG) AUG 7.04% UP 57.36
44 HILL & SMITH HOLDINGS PLC (XLON:HILS) HILS -4.45% UP 47.05
47 HOMESERVE PLC (XLON:HSV) HSV -5.09% UP 46.66
50 MONDI PLC (XLON:MNDI) MNDI 6.30% UP 57.60
# Retail Estate TICKER AVG TREND RSI
11 ASSURA PLC (XLON:AGR) AGR -3.47% UP 45.08
51 PERSIMMON PUBLIC LIMITED COMPANY (XLON:PSN) PSN 3.19% UP 54.93
95 LONDONMETRIC PROPERTY PLC (XLON:LMP) LMP -1.65% UP 53.15
129 SAFESTORE HOLDINGS PLC (XLON:SAFE) SAFE 3.04% UP 59.55
136 SEGRO PUBLIC LIMITED COMPANY (XLON:SGRO) SGRO -0.16% UP 56.73
171 TRITAX BIG BOX REIT PLC (XLON:BBOX) BBOX 3.90% UP 63.08
208 PRIMARY HEALTH PROPERTIES PLC (XLON:PHP) PHP -2.12% DOWN 43.88
230 CUSTODIAN REIT PLC (XLON:CREI) CREI -7.98% DOWN 45.10
265 THE UNITE GROUP PLC (XLON:UTG) UTG -14.27% DOWN 43.52
271 TR PROPERTY INVESTMENT TRUST PLC (XLON:TRY) TRY -7.93% DOWN 50.09
# Communications.Utilities TICKER AVG U/D RSI
5 PENNON GROUP PLC (XLON:PNN) PNN -2.97% UP 43.83
16 TREMOR INTERNATIONAL LTD (XLON:TRMR) TRMR 19.41% UP 67.31
17 TRAINLINE PLC (XLON:TRN) TRN -6.30% UP 43.33
23 IOMART GROUP PLC (XLON:IOM) IOM -1.64% UP 48.34
34 AIRTEL AFRICA PLC (XLON:AAF) AAF 5.35% UP 55.68
37 TELECOM PLUS PLC (XLON:TEP) TEP -2.93% UP 48.13
52 SEVERN TRENT PLC (XLON:SVT) SVT 1.93% UP 53.86
79 AUTO TRADER GROUP PLC (XLON:AUTO) AUTO 3.31% UP 57.07
85 DRAX GROUP PLC (XLON:DRX) DRX 5.51% UP 59.42
117 RIGHTMOVE PLC (XLON:RMV) RMV 7.19% UP 63.14
# Technology TICKER AVG U/D RSI
15 XAAR PLC (XLON:XAR) XAR 27.15% UP 74.43
49 NEXT PLC (XLON:NXT) NXT 10.72% UP 61.61
65 LEARNING TECHNOLOGIES GROUP PLC (XLON:LTG) LTG -12.47% UP 41.26
69 THE SAGE GROUP PLC. (XLON:SGE) SGE 0.57% UP 53.64
83 ELECTROCOMPONENTS PUBLIC LIMITED COMPANY (XLON:ECM) ECM 5.70% UP 59.58
88 PLAYTECH PLC (XLON:PTEC) PTEC 8.56% UP 62.41
97 GB GROUP PLC (XLON:GBG) GBG 7.12% UP 61.37
106 AVEVA GROUP PLC (XLON:AVV) AVV 2.89% UP 57.96
109 EXPERIAN PLC (XLON:EXPN) EXPN 2.38% UP 57.84
111 SOFTCAT PLC (XLON:SCT) SCT -5.51% UP 50.60

Lamprell (LAM), the oil specialist, this weeks leading stock

A potential breakout of key resistance ahead.

JP Morgan Russian Securities (JSR), in the Financial Sector, looking to bounce off the trend line

Ilika (IKA), the battery manufacturer, looking to confirm the reversal of a recent pullback

BBOX, the REIT with a primary focus on distribution centres, is looking to break into new highs

DCC, the Irish international sales group, could be showing potential for a swing trade, as it approaches the FIB 0.5 mark

Hi JD,

I’ll have a more detailed read later.

I have one quick question on Square which I note is in your US financial pie. I’ve been watching this for a few months and I keep thinking I’ve missed the boat. I therefore feel like I’ll be FOMOing if I invest but they’re a great company. My main concern is that the growth for the next few years is already priced in.

I know there is more to DD into but the PE and forward PE is extremely high (around 250).

What do you use to access investing in companies like this?

If you like the fundamentals and actions of the company, over a mid-long term period, then the SP at that moment, doesn’t have so much effect on your decision. Technicals can affect entry and exit points, but they can’t affect the fundamentals.

Some famous growth investors don’t even look at the SP, and it worked out ok for them.

As an entry point, you could probably get in on a pullback in the coming weeks, before the earnings report at the start of next month.

This strategy isn’t so much about the fundamentals, although can prompt to look further, should an interesting flag arise.

I jumped on Square last week at \$180, when I started my pie, and caught a 2% gain, they would have actually slipped down this week, and not made the cut.

I expect it to potentially be down or towards my entry point by the end of the month, as I look to rebalance, but with positive growth figures, it may flag up as being an opportunity to add extra value, we’ll see.

# Name TICKER SECTOR AVG U/D RSI
229 SQUARE, INC. (XNYS:SQ) SQ FINANCIAL 30.71% UP 78.11

1 Like

If fundamentals are not to be looked at, then what is?

I acknowledge I am a novice but say for instance you were to plot the future EPS growth etc and put it in line with the share price on the assumption this is relative to make an assessment to work out a fair price then it surely wouldn’t work as the fundamentals are so out?

That’s a very valid point, and a deeply fundamental based way of projecting perceived value, for mid-long term growth.

I think sometimes less is more, and you can overcrowd, and even weaken your decision with too many variables. You have to stick with what you believe works at that particular stock, or sector. Chopping and changing to get the decision you want, is very dangerous.

1 Like

And this is why I’ve pretty much stayed away from things I can’t understand right now and I couldn’t justify putting my money there. Although, I appreciate the market is telling me I’m wrong right now.

Maybe in time I’ll go with some of these crazy growth stocks. People are always knocking Tesla’s fundamentals but companies like Datadog are far worse.