Stocks To Buy And Watch: Use These MarketSmith Features To Catch

More than stock charts, IBD MarketSmith offers ways to research stocks from fundamental and technical perspectives. But the charts and fundamentals are only the start of the MarketSmith package.

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Be sure to check out the RS Line Blue Dot list, the MarketSmith Growth 250 and Pattern Recognition add-ons, and industry group tools. These are some of the best features of this premium IBD service.

RS Line Blue Dot

The RS Line Blue Dot list identifies stocks whose relative strength lines are hitting new highs, while the stock is building a new base or breaking out past a new buy point.

That’s a bullish combination and a prime way to spot new market leaders. “It’s the best list during a market correction,” said MarketSmith Senior Product Coach Scott St. Clair.

Remember, the RS line measures a stock’s price performance vs. the S&P 500 and is the blue line on every IBD chart. If the market’s down, good stocks will outperform by treading water. When the market rebounds, the stocks with best relative strength should bounce back even stronger than the market.

Current market leaders on the RS Line Blue Dot list include Monday’s IBD 50 Stocks To Watch pick, AutoNation (AN), IBD Leaderboard stock Deckers (DECK) and IPO Leader Yeti (YETI).

The RS Line Blue Dot list is part of the MarketSmith Pattern Recognition add-on, which traces bullish chart formations and identifies buy points.

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Growth 250 & Pattern Recognition

An easy way to quickly identify top growth stocks near potential buy points is to use the MarketSmith Growth 250 “Near Pivot” list. It overlays the Pattern Recognition technology over the Growth 250 (an institutional-quality list of top growth stock ideas) to filter the ones near buy points.

“Breaking Out Today” and “Recent Breakouts” are two other ways to identify actionable stocks.

The Pattern Recognition feature was developed to help investors accelerate the learning curve of identifying the seven classic chart patterns that occur throughout the history of the stock market, like the cup-with-handle.

Industry Group Leadership

A feature recently added to MarketSmith gives you extensive industry group information.

At the top left of every chart, just to the right of the company name, a link provides the stock’s industry group and where it ranks in IBD’s 197 industry rankings. Investors should typically focus on the leading one or two stocks in the top 40 industry groups. Broad-based leadership in a group is good to see when assessing a stock’s potential.

Click the link to view the industry group’s chart. Just like stock charts, industry group charts can reveal bullish or bearish trends.

Some other notable features of MarketSmith:

• Users can set price alerts on any stock. Users can set the prices, or use a menu that triggers when shares fall below the 10-week line after a breakout, when they cross the 50-day line in either direction or in other circumstances.
• Alerts also can be set for…