by Dr. Bart DiLiddo
Friday, 09/09/2005
Many of you have noticed that VectorVest has been advertising on CNBC's show, "Cramer's Mad Money." As reported in my essay of April 15, 2005, I watch the show and I enjoy it. Best of all, I have made some serious money by watching the show. But I had a major advantage that most of his viewers didn't have. I had VectorVest.
When I first starting watching the show, I would sit back and enjoy it, occasionally jotting down symbols of stocks that seemed interesting. Then I thought it would be neat to compare Mr. Cramer's recommendations with those from VectorVest, so I began to check them in Stock Viewer. In doing this, I learned a lot more about the stocks Mr. Cramer was talking about, but I enjoyed the show a lot less. Moreover, I still had to write down the symbols of the stocks I liked. I then decided to create a "Mad Money" WatchList Group and put the ticker symbols into two WatchLists: one for Buys and one for Sells. Now I can enjoy the show and use rank analysis afterwards to see which stocks to favor and which to avoid. These WatchLists also allow me to see how well Mr. Cramer's recommendations are performing over time. (No, we will not be sending you these WatchLists.)
While Mr. Cramer is a very bright guy and knows a lot about the market, I don't agree with everything he says. For example, I don't like buying stocks falling in price. He claims to know when to do this and when not to, but I just don't do it. He doesn't like buying stocks hitting new highs, but recommends them all the time. He refuses to acknowledge market downtrends and says, "There's a Bull market out there somewhere and I'll find it." I wish I were that smart, but I'm not. So I try to let the trend be my friend.
While there are other areas where our methods differ, we agree far more than we disagree. For example, Mr. Cramer favors companies he calls, "best of breed." VectorVest does too. The stock with highest Relative Safety, (RS), rating in an Industry Group would be the "best of breed." Perhaps the most important area of agreement is that we both want to help you make money in the market. So why not put two and two together. Watch Cramer, use VectorVest and really see How to Make Money.
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