TDI Episode 46: The Premiere of FusionIQ
March 2, 2008 6:41 pm
Guest: Barry Ritholtz brings us FusionIQ – an amazing stock selection system and powerful tool for research. FusionIQ decisively changes the game by bringing pro-tools to the investment public – this is not your ordinary stock screener.
Mixing a set of highly critical quantitative filters with fundamental and technical overlays, this will quickly become an investor’s most trusted research assistant. Just out of the gate on March 1st, it already provides a rich set of features that will shorten the time span from research to execution. Reviewing it during its beta testing cycle, I was able to work with the system and can report that it is not only powerful and accurate; but it is mighty fast!
Interestingly, the methods that FusionIQ uses to make a decision on buy-hold-sell, is right in-line the process Horowitz & Company has used and I have written about for years:
1) Quantitative (screens)
2) Fundamental (ratios and results)
3) Technical (history and charts)
In The Disciplined Investor Podcast Episode 46, FusionIQ CEO, Barry Ritholtz, (The Big Picture) and I explore how to get the most out of FusionIQ.
Remember: The phone number to call in to request answers to your investment questions is: 1-877-623-8473 – Next Episode we will spend some time answering these.
From Fusion IQ
FusionIQ works by using our unique combination of fundamental and technical indicators to rank 275 industry groups and over 8,000 stocks, ETFs, and closed end funds. The ranking range is from 0 (worst) to 100 (best). FusionIQ then applies
its proprietary algorithms as an additional metric to this universe.
Investors can use the tool in any of the following ways:
-ANALYZE STOCKS: Run a screen to analyze the ranking of over 8,000 companies based on their trend, money flow, short interest, earnings, and institutional ownership;
-MONITOR HOLDINGS: Keep tabs on your portfolio simply and easily;
-PRESERVE CAPITAL: Act on early warning signals (SELLS) before stocks fall too far;
-IDENTIFY TRADES: Identify new trading and investment ideas (BUYS) that are both technically AND fundamentally sound;
-EVALUATE IDEAS: Objectively test a variety of other trading ideas (POTENTIAL BUYS).
FusionIQ begins by creating a Master Score (0 – 100), based on the combined Technical and Fundamental scores.
The Technical metrics include:
a) 3 time frames (short, medium and long) of price trend;
b) Money flow score:
i. individual stocks
ii. industry groups
c) Short interest (float adjusted);
d) Directional institutional ownership.
The Fundamental metrics include:
a) Earnings consistency score
b) Predicted earnings surprise metric.
The ranking system is only the first step. FusionIQ then applies proprietary algorithms as an additional metric to this universe of stocks, to identify many different buy and sell signals. There are many different signals, but some of our favorites include:
Sector Group Rankings, Short-term Buy and Sell Signals, Earnings Surprises, Short Squeezes, Power Gaps