RELATED TOPIC -->    | JSW Compatibility, Configuration & Installation Guide |
                                   | TUTORIAL-1 : Trading shares using ShareTrader tools in JSW |
                                   | TUTORIAL-2 : ShareTrader Advanced Features |
                                   | TUTORIAL-3 : New features for 2011 |
                                   | TUTORIAL-4 : New features for 2012 *NEW* |
                                   | JSW and ShareTrader Training Videos
                                   | Download JSW_MYSHARES.XLSX portfolio file |

IMPORTANT : Make sure you read the compatibility, configuration and installation guide before attempting to operate the JSW program! Read this page and then progress onto Tutorial-1,2 and 3 afterwards. You can view the videos at any time.

The PowerStocks Research JSE Share WatchList (JSW) is a powerful quantitative tool for our subscribers to analyze share action on the JSE and identify investing as well as short-term trading opportunities. It is based on end-of-day (EOD) data.

JSW is useful for traders and investors alike. With it you can perform the following example tasks:

1.  See which shares are out-performing the rest of the market (relative strength)
2.  See which shares are trending and how strong they are trending (trend strength)
3.  See which shares have just crossed through various moving averages
4.  See which shares are making new highs (breakouts of resistance)
5.  See which shares are making new lows (break-downs of support)
6.  See how many trades took place in the share (activity) and what its general liquidity is like
7.  See what volume and Rand value the share traded in for the day
8.  See what shares rose, stayed the same or declined in any JSE sector
9.  See which shares are showing unusual trading activity and volume (Share Buzz)
10. See which shares are forming a trough and making a comeback after a steep decline
12. See the price changes of the volume-leaders, value-leaders, activity leaders etc.
13. See if the share is cheap or overpriced with the PowerStocks Valuation Metric (PVM).
14. See the Piotroski F score (financial health score) for each share
15. See if any share is a Magic Formula, O'Shaughnessy or a CAN-SLIM strategy candidate
16. See what the price-movement breadth of any share is (number of back-to-back advances)
17. See the 60-day history of the shares' price in a "at-a-glance" spark-line chart
18. Find shares that are making V,U, inverted-L, inverted-V and other chart formations
19. Highlight shares that form part of your personal portfolio.
20. Execute 15 pre-programmed screening functions to identify interesting share candidates
21. See which shares have strong historical revenue, earnings, cash-flow and dividend track records
22. Get automated BUY and SELL signals for individual JSE shares

All the above information is presented on a single page where it can be filtered and sorted by multiple fields to produce intelligent data targeted at the investors needs. The image below shows the 32 individual fields that can be filtered and sorted to identify opportunities in the market that would otherwise not be apparent to most investors and traders: (don't squint, we expand later on)

Before downloading, installing and using JSW for the first time, you are strongly advised to please read the JSW Compatibility, Installation and Configuration Guide available from the link at the top of this page.

To avoid you having to squint too hard, we will break the watch-list table up into three parts and discuss accordingly. The first part, covering columns A through P appears below:
The TOP PANE consists of rows 1-4 and is frozen on the top of the page, allowing you to scroll down all 400 shares on the JSE whilst still being able to see the row headings and function buttons.  You will also note that there are little red triangles in the column headings denoting brief drop-down comments describing each column and its function. Just hold your mouse over the red triangle and the comments should appear.

The TOP PANE has over 30 programmed function buttons. You just click on any of the buttons and the whole JSE will be searched for shares that match the requirements defined by the automated function. After executing a function, a description of the function mechanics will appear in the information section just to the right of the orange "My Shares" button. 

In row-4 you will see FILTER drop-down menu buttons for every column. Just click on them to bring up a filter/sort menu with which you can further filter and sort every column. We cover this later.

Column-A is an advance/decline indicator that shows if the share advanced, declined or remained unchanged from the date depicted in cell E3, over the prior trading day. This is actually a surprisingly useful little indicator as for example, one could filter column-D for any specific JSE sector by clicking on the drop-down filter box in cell D4 and ticking the sector/s you are interested in and then you can see a list of all shares in that sector together with their advance/decline indicators. One could also select the drop-down filter box in cell A4 and then only select advances to only see all the shares that advanced in a JSE sector.

Columns B to D just give the share's JSE ticker, its short name and its sector. You will note than the names in column-c are hyperlinked. If you click on these share names, you will be directed to Sharenets fundamentals page giving further information on the company (see below)

If you scroll down the above page you get other interesting info such as quick fundamentals, SENS alerts, press releases etc associated with the company (Sharenet subscribers).

Column E gives the closing price of the share on the date of the report. F shows the volume traded and G shows how many individual trades took place on the share. H gives the total value traded on the day in Rands. You will note that column H is colored in with a green bar to give you an idea of how this value compares with the rest of the shares that traded that day - if the green bar is small, it is below the average, if the bar is in the middle, its about average and if the bar colors in the whole cell, its at the top end of the sample.

Columns I through M are hidden and used for internal calculations. Column-N shows you how much the share changed over the prior day in percentage terms, whilst column-O shows you the percentage change in the share price since 5 trading days (1 week) ago. You will see a faint orange line (spark-line) in column-O depicting the movement of the share's price chart in the last 5 days. Column P gives the shares' growth over the last 20 trading days (1 month). These columns are very useful to give you an idea of the shares' more recent performance.

The next image covers columns Q through to AG:

Column-Q gives the shares market-capitalization (in millions), based on the share price of the day multiplied by the amount of shares in circulation as provided by the companies' last financial report. This is a much better way to gauge market-cap since this value could have changed quite dramatically since the company last published its market-cap figures. Again, we use a colored bar to depict relative size of the number compared to the other JSE companies.

Column-R, "LIQ 10d" gives an idea of the liquidity of the share by measuring how many times in the last 10 trading days the share was actually transacted in a successful trade. The numbers of themselves are meaningless to you since they vary so widely from share to share, but if you really want to know the figure, just click on any cell in column S and the value will be shown in your spread sheet's input bar. We depict it with a white circle that gets filled in black depending on the following values:

0       -100     trades (10 per day avg)     = "illiquid" = empty circle (see AFBRICK)
100    -500     trades (10-50 per day)      = "marginally liquid" = one quarter filled circle
500    -2,500  trades (50-250 per day)     = "moderately liquid" = half filled circle (CAPITEC)
2,500  -10,000 trades (250-1000 per day) = "liquid" = 75% filled in circle
above 10,000 trades (over 1,000 per day) = "very liquid" = fully filled circle

Liquidity is important. Illiquid shares can be hard to trade, difficult to sell and sometimes hard to buy at the right price due to wide bid-ask spreads. They can give clues to tightly held shares by institutions though - and this is a good thing as it can drive prices up as demand increases (This is a tactic used by the CAN-SLIM strategy.)

Column S gives the share's Dividend Yield in %. A pink shaded bar shows this dividend yield with respect to a maximum value of 10%. Small yields have small pink bars and yields above 10% have full-length pink bars.

PowerStocks Valuation Metric (PVM)
Column-T gives the shares' PowerStocks Valuation Metric (PVM). This is based on today's share price and the respective companies' earnings-per-share, book-value-per-share, cash-flow-per-share and sales-per-share figures taken from the most recent financial report. Many of you are used to using a shares’ Price/Earnings (P/E) ratio to gauge whether a share is cheap or expensive and generally this is sound practice. But there are equally important and powerful valuation metrics for a share, such as its Price/Book ratio (as you will recognize from extensive use in the Piotroski strategy) , its Price/Sales (or Price/Revenue) ratio and its Price/Cash-flow ratio. Sometimes you are faced with a share with a negative P/E which renders it useless as a valuation metric (just because the company is showing losses does not mean it is not valuable or going cheap) and sometimes it is quite possible for a share with a seemingly high P/E to appear expensive but when one considers the other metrics it is actually cheap!

For this reason, PVM looks at a shares’ Price/Earnings, Price/Book, Price/Sales and Price/Cash-flow ratios and combines them together in a single metric to give a composite valuation estimate that is more rounded and more reflective of a shares overall valuation. The metric ranges from 0 to 4 as shown below and is shown by a signal strength icon:


You can see from the above image that PVM rates ABK as “Bargain Basement Cheap” and this is a classic example of where P/E alone fails in valuating a company. ABK's P/E is -1.57% but its Price/Book is 0.37 (its going for 37c on the Rand) and its Price/Sales ratio is 0.29, both vary cheap valuations. Of course, there are many other things you want to consider when making an investment decision (sometimes things are cheap for a reason) but PVM forms an important part of that. When you see a share that PVM rates as cheap/expensive you can be sure that all of its P/E, Price/Book, Price/Sales and Price/Cash-flow ratios are representative of values close to those the industry accepts as cheap/expensive.

Relative Strength
Column-U is a very useful tool - the 1-month Relative Strength indicator. It shows what percentage of the JSE this share out-performed in terms of 1-month share price growth. You can see above that LON out-performed 74% of the JSE over a 20 trading-day period. This puts it among the top performers on the JSE. If you want to know how much the share appreciated over this period then just refer to column-P where you can see it was 6%. Obviously, if the value here is 100 then the share is the top performing share and if the value is 0 then it is the worst performing share. This can be quite useful to you when deciding what share to choose from a list you are whittling down. Want to know which shares are performing the best in a particular sector? - just filter the database with the desired sector and then sort by relative strength! Exclude illiquid shares to make the list even shorter and then focus on those shares with a relative strength greater than 80. You'll be surprised how small the list is!

This ingenious system in columns V and W highlights unusual activity and volume by comparing the number of trades for the day to the 10-day daily average and the number of shares that changed hands (volume) to the 3-month daily average. It is represented as a percentage that depicts the daily value relative to the average being compared to, meaning 100% is average and above this is above average.

For example we see that LON transacted 213% of its 10-day average trade rate, quite a bit above average, and the volume of shares traded was a whopping 446% of its 3-month average. If these percentages exceed certain thresholds then the signal-strength "buzz indicator" to the left of the % will start filling up gradually to bring your attention to the fact that out-of-the-ordinary activity is occurring. The more bars fill up in the indicator, the more unusual the respective activity.

For advancing shares, a high "volume buzz" coupled with a low "trades buzz" is very useful to tip you off to insider movement or smart money or institutions moving into shares on the expectation of some favorable news or the discovery of good value by their research teams that is not yet known by the general public. It assists you jump in early on a possible big trend. Unusual volume for a declining share obviously points to the opposite, i.e. insiders learning of some bad news about to hit the wires or pre-knowledge of disappointing results yet to be announced or institutions dumping (distributing) their shares. When there is a high "trades buzz" then this is indicative of the general investing public climbing aboard and most times is actually accompanied by a low "volume buzz"! It is rare to see high volume and trade "buzzes" together!

Columns X to AA are a meter measuring the bullish price-action of a share. This measures the strength of the shares advancing trend, from 0 through to 4 and uses the shares' price in relation to its 15-day and 30-day moving averages.

The column tagged "15" will display a green tick if the shares price is trading higher than its 15-day moving average and give 2 points to the meter. The column tagged "30" will show a green tick if the share is trading above its 30-day moving average for an additional 1 point. The column tagged "X" will show a green tick if the shares' 15-day average is above its 30-day average (average crossover) and give a further 1 point to the meter reading. The column tagged "T" shows the total signal strength from 0 to 4 gained from the points derived in the "15", "30" and "X" columns. The higher the value, the stronger the bullish trend of the share. A value of zero probably depicts a share in a strong decline.

Recency indicators: You will note some cells filled in with a yellow exclamation mark or a red cross. The yellow exclamation mark tells you that the up-crossing occurred within the last 3 days. It is very useful to know that a share crossed up through its 15 or 30 day moving average within the last 3 days, as this means you can catch a trend early. When the "X" column has an exclamation mark, it tells you the 15-day average crossed up through the 30 day moving average at least 3 days ago. Simply filtering a column to only show exclamation marks will reveal all shares on the JSE that have just performed this action within the last 3 days. A red cross means the opposite to the exclamation mark - it means a cross-down occurred within the last 3 days (normally a bearish signal, whereas up-crossings are bullish signals.)

These indicators are useful if you are interested in a share and trying to time the purchase. Only buy when there is at least 1 bar strength on the signal! As of this writing, which is just after quite a run-up by the JSE, if you filter-by-color and select full signal strength, this only reveals 81 shares on the JSE, or just under 20% of the JSE listings! Another useful feature is to search for bearish (signal=0) shares in a  strong bull market to identify shorting candidates and to search for strong (signal=3 or 4) shares in a bear market or correction to identify potential long candidates.

This is shown by columns AB and AC and represents shares that are undergoing a Donchian 60-day bullish breakout (column AB - "HI") and those undergoing a 20-day Donchian bearish breakdown (column AC-"LO").

A green flag means that today's price as depicted in the report actually represents the new high or new low constituting the Donchian break. A red flag means the share is 2% away from the break which implies its either about to make a break or it has already recently made the break and pulled back or fallen slightly since the break. In either case the share is trading at or near a 60-day high or 20-day low which is always interesting information. Donchian trend-following theory states you should buy a share when it makes new highs and sell a share when it makes new lows.

Column AD ("FA") is a list of shares that have experienced a recent large decline and are displaying strong signs of an early trough reversal (rebound.)  For the current setting for the system, they are all trading at least  10% below their peak since 15th April (the actual % is shown in column AD). The farther they are trading from their peak the better your opportunity at picking a bargain that is likely to rebound strongly.  The peak and minimum percentage decline the system uses in the computation will vary with market conditions, but the purpose of the system is to constantly scour the market for oversold shares that experienced large declines but are now rebounding.

Several characteristics of the shares' price action show strong signs of a reversal. For example, they are also trading at least 2% up from their  recent 10 day low. Their  5-day moving average is greater than their 10-day moving average, indicating a sustained short-term up-trend. Additionally, the price of the day is greater than one of the previous two days, and the previous day's price is greater than the minimum of the last 6 days.

If there is a large correction underway (more than 10%) then these shares are the
"Fallen Angels" candidates with the obvious idea to find the biggest shares that fell the most, since our research (see Anatomy of a Crash) shows these shares are likely to rebound the most. You are advised to examine these shares (after filtering out some of the illiquid ones which will be hard to trade or sell if you need to get out) with your own charting package to get a feel for the price curve and the opportunity.

Columns AE ("SV") and AF ("Sin") are associated with PowerStocks' proprietary "Sincerity Index" shown in the column tagged "Sin". It is a indication of a shares' price-breadth and merely measures the number of back-to-back (consecutive) advancing days in the last two weeks of trading. It is a measure of "conviction" or "sincerity" in a share's upward price action. The value is high during powerful up-moves, and a value of zero represents a weak or vulnerable share.

There is a blue histogram spark-chart in column AF representing the Sin for the share for the last 20 trading days. The number in the cell depicts the actual Sin score for the day. We can see that RESILIENT has posted 4 back-to-back advancing days in the last 2 weeks and that its Sin was steadily climbing - showing a powerful up-move in the making.

If a share is rising, but the Sin is declining, then this is a sign of WEAKNESS entering the share's price action, a possible warning of a peak. If the share is rising but its Sin value is 0 or 1 then it means the rise is not underpinned with much conviction, rising one day then declining the very next day, slowly inching upwards as the advances slightly overcome the declines. Such a rise is VULNERABLE as it is not underpinned with any CONVICTION associated with back-to-back advances.

Apart from being an excellent gauge for the power behind a share's rise, this indicator is excellent for detecting shares that are making high-confidence trough reversals. When a share has had a Sin reading of 0 or 1 for a protracted period and then suddenly the Sin rises by 3 points (from 0 to 3 or from 1 to 4) then this is a sign the correction is over and buyers are returning to share, propelling it upwards with conviction. It takes a lot for a share that was languishing to suddenly register 3 or 4 back-to-back advances. When this occurs, you will see a green encircled tick in the "SV" column, telling you this share appears to have made a trough reversal (V representing the "bounce").

Have a look at SPG in the above picture. This is a classic "Sincerity Trough Reversal". You can see from the Sin histogram that SPG's Sin score was reading zero for quite some time (no blue bars on the left of the histogram.) You can see from SPG's history chart, which represents the last 40 days trading, that this was associated with a period of price decline. It is common for a share to be declining when it cannot muster up any back-back advancing days. But then one day, SPG registered a back-back advancing day, shown by a little blue vertical line in the Sin histogram, just under the "3". The reading stayed at 1 for a while (a classic sign of the share "bottoming" or forming a base for the trough) and then very recently, the Sin rose to 2 and then to 3 (the current reading) meaning buyers are flocking back to snap up the share which is now supposedly "undervalued" or showing "value". The green tick tells us this would be a good time to "take a punt" if we are trading CFD's or "buy on the dip" if we were investors perhaps interested in this share. Incidentally, you can see from the "FA" tag that SPG is also a "Fallen Angel" having fell some 15% from its last peak.

The screen-shot taken above is actually the resulting output of pressing the "Sincere-V" blue function button. This automated function will find all the shares on the JSE that have had their Sin languishing at 0 or 1 for a while and suddenly having risen to 3 or more. If you want to catch the trends early, focus on the shares with Sin readings of 3 or 4. If a share appears in this list with a Sin of 6 and above, then chances are the reversal occurred a few days back and you might be a bit late into the move (only of concern to short-term traders.)

Column AG shows the last 40-days of price history for each share on the JSE (we call it a spark-line chart). This is incredibly useful to get an "at-a-glance" view of a share's price history without having to open a charting package. You will notice that your mouse cursor turns to a hand when you hold it over the spark-chart. If you click on the chart when this happens, you are taken through to the Sharenet free Java Chart application where you can further inspect what is going on, as shown in the example below after clicking on SUPERGROUP's spark-line chart, after noticing that it appears to be making a trough reversal.

You will notice that the Java Charts have the 15 and 30 days moving averages we use in the TREND METER, programmed into them already. If you look at SPG's TREND meter, you will see we were showing a green tick in the "15" column, meaning SPG was trading well above its 15-day average, but we had a yellow exclamation mark in the "30" column, alerting us to the fact that SPG has crossed up through its 30-day average within the last 3 days. Sure enough, you can confirm this event with the Java Chart above. If you are a cautious type, you may want to wait for a yellow exclamation mark to appear in the "X" column, when SPG's 15-day average crosses up through its 30-day average. If you watch JSW every time it is published, you will be alerted the day this happens!

If you are interested in trading or investing in SPG but want to wait for this event before committing yourself, you may elect to place SPG into the JSW_MYSHARES portfolio file on your hard disk, tagging it as a "watched" share, so that you can simply filter column AM (MY SHARES) to show all your "watched" shares so you can look for when the required events occur.

The 5 columns from AH-AL depict various screens we maintain on the JSE for various proven investing strategies. Shares that belong to these screens normally have characteristics associated with a high probability of success from an investing perspective. If you click on the name of the screen, you are taken through to our website where we discuss the in-depth theory behind the relevant screens.

These columns flag if the share belongs to a certain fundamental category. These fields are predominantly associated with SAFETY as inclusion in these categories significantly enhances a shares' odds of success, based on well known international research, which our back and forward tests have validated for the JSE. Once per week, we run screens on the JSE to determine each shares' inclusion in these categories.

The Piotroski screen gives a score from 1 (bad) to 9 (good) for the share's financial practices and standing over the last two reporting periods. If a cell is blank (as with REI) it is because there is some reason this score cannot be computed. Either the counter is new, just listed, does not post certain items needed by Piotroski (such as banks which don't post revenue figures for example) or has not posted two sets of results yet.

Magic Formula
Column AI will show a colored button if the share is a Magic Formula candidate:
Green button  : The share is in the top-5 of the screen on the TOP-50 universe
Black button   : The share is in the top-5 of the screen on the TOP-100 universe
Yellow button : The share is ranked 6-10 in the screen on the TOP-50 universe
Red button     : The share is ranked 6-10 in the screen on the TOP-100 universe

Green buttons are better than the yellow buttons. Black buttons are better than red buttons. You can't say that green buttons are better than black buttons or that yellow buttons are better than red buttons as this depends on your risk profile. But in general, for beginners at least, green button shares are "kinder" than black button shares merely because they are much larger counters. Similarly, yellow button shares used in a portfolio will produce less volatile results than a portfolio constructed of red button shares, but in the long run (if you can stomach the volatility) red buttons can produce better returns. If you like to follow our highly popular T40-MF-x 5-share portfolios we create each month and track in the SCOREBOARD page then stick to green button shares.

Column AJ shows if the share is a rare
CAN-SLIM candidate. These shares have shown consistent, accelerating EPS growth over the last 3 years and 6 reporting periods, but they themselves are categorized by a signal strength button as follows:

4 bars : Growths measured from current & previous reporting periods were off positive bases
3 bars : Growth off most recent result was off positive base, previous period was off negative base
2 bars : Growth off most recent result was off negative base, previous period was off positive base
1 bars : Growths measured from most recent & previous reporting periods were off negative bases

So whilst all the CANSLIM candidates showed growth of more than 10% for their earnings-per-share figures reporting in the last two financial periods, we give more weighting to growth achieved off a positive base than off a negative base. Think of it - EPS growth rising from 10% to 20% is much more impressive than EPS growth rising from -10% to +10%. Both are 100% improvements in the growth rates but one could argue it is easier to achieve improvement when coming off negative bases than positive ones!

CAN-SLIM shares showing 4 signal strength are the "Blue Blood" candidates - but they are very rare, as of today's writing there are only 4 such shares on the JSE!

TOP-40 & TOP-100
Column AK will show a green button if the share belongs the FTSE JSE TOP-40 index (tracked by most ETF's and fund managers) and a red button identifies a share in the largest 100 shares on the JSE by market-capitalization. Beginners are recommended to keep their individual share dealings to the TOP-40 and non-beginners that are still inexperienced are advised to stick to the TOP-100 shares. Larger shares are "less risky" than smaller shares, but of course less risk implies, in general, less reward.

Column AL will show a button if the share belongs to the
O'Shaughnessy Cornerstone Value strategy. This is a very good strategy for picking high-income shares that also show good capital growth. The buttons are colored as follows:

Green  : Ranked 1-5 by shareholder yield
Orange: Ranked 6-10 by shareholder yield
Red     : Ranked 11-15 by shareholder yield

Green is better than orange, which is better than red, which is better than nothing - at least as far as this strategy is concerned!

The last column, AM is tagged "MY SHARES" and is where you can keep track of up to three different personal share portfolios from within JSW. You enter these in the JSW_MYSHARES file that you must place in the C:\POWERSTOCKS folder, as shown below:

We now discuss all the 30 automated function buttons we have designed into JSW to make it quick and easy for you to identify opportunities that match your risk profile and style of trading/investing. Just hover your mouse over a picture in JSW and if it turns into a hand, then you know you can click on it to execute an automated function to present a popular view on the market. Once you have done this, a description of the function will appear in a text box just to the right of the orange MyShares button, describing the characteristics of the shares you will be seeing in front of you. 

The first 8 are the "Leaders" functions, shown in green and red buttons. Leaders are defined by the top volume, top value, top activity and top market-cap respectively. Clicking on a green function button gives you the respective leaders that advanced and clicking on the red button gives you the leaders that declined for the day. All the leaders are defined as being in the top 95th-percentile of their respective category (i.e. Volume leaders are those shares that traded the top 5% most volume, or whose volume exceeded 95% of the rest of the JSE.) When the screen is completed, the list is shown sorted by price appreciation (or depreciation) for the day ("1D")

The 9th and 10th buttons
"TOP" are the big hitters - they are shares that simultaneously qualify for ALL the leader positions, i.e. they were in the top volume, trades, value and market-cap categories for the day. This list is obviously much shorter than the previous ones that only look at one aspect of "leadership".

J211 : INDUSTRIALS This orange button shows all the 26 JSE shares that form part of the J211-INDUSTRIALS sector that is tracked by the SATRIX-INDI ETF. It is a mix of various large cap shares from various of our JSE sub-sectors and is not to be confused with the "Industrial goods & Services" sub-sector in the Watchlist column D.

J200 : TOP-40 This shows the 40 JSE shares that form part of the FTSE TOP-40 Index, tracked by the SATRIX-40 ETF and many TOPI warrants and ALSI futures contracts. Very useful if you are trading a product that tracks the TOP-40 and you want to know what shares were responsible for its rise or fall on any given day or even over the last 5 or 20 days.

MyShares This button shows all your shares you configured into the JSW_MYSHARES file that you stored in C:\POWERSTOCKS folder. This offers a quick way to click one button and be presented with all your investment, trading and watchlist shares so that you can see at-a-glance exactly what happened with them for the day. Particularly useful for shares you are "stalking" and waiting for an exclamation mark to appear in one of the TREND columns or in the Sin-V column to signal a BUY.

The picture below shows the remaining 19 function buttons to the right of the page:

RESET After running a macro, you can reset the database and clear all the filters and sort fields created by the macro by clicking the bright red RESET function button. This just saves you having to manually unclear all the sorts and filters in the various columns yourself if you want to reveal all the shares again to run more complex screens not covered by the macros. You do not have to perform this task to run successive macros though, they do this automatically themselves when you activate them.

VAL+ This is a different spin on the classic Piotroski investing strategy. Instead of using Price/Book as our measure of a "undervalued or neglected share" why don't we use PVM? Clicking this button reveals shares that PVM considers "bargain basement" and that have Piotroski scores greater than 7.

Trend+Break shows shares that have traded at least 100 times in the last 10 days, that have a full score for the TREND METER (very strong upward trend) and also made Donchian Breakouts. These are not "flash-in-the-pan" Donchian breakouts, these are shares that have been showing significant strength for a period (the only way to get a full TREND score) and finally culminated in a breakout. The final list is sorted by relative strength.

Shorts shows shares that trade at least 6 times per day and that have ridiculously overpriced PVM valuations coupled with extremely weak financial standings as depicted by Piotroski scores less than 3. It is very risky buying these shares. Make sure none of these shares are in your portfolio! Experienced traders may opt to take out short positions on these shares when the timing is right (when they make Donchian lows or red crosses start appearing in the TREND columns or when Sin starts declining rapidly, even as the share continues to climb.) Whilst traders can play these shares, they are not advised for long term investors (except if you plan to short).

Broad Buying are shares that advanced for the day, and where the number of trades conducted for the day are at least 200% of the 10-day average (most of them should have a "Trade Buzz"). We also only include shares that have advanced in price over the last 5 days. We exclude illiquid shares, meaning at least 100 trades were made in the share in the last 10 days. Finally, we restrict the list to shares that have at least a TREND score of 1. The final list is sorted by relative strength. This screen always produces some interesting candidates, especially when you see shares in the final list with breakouts or trough reversal flags!

Volume Surge looks for shares where the volume traded for the day was at least 150% of the average volume taken over the last 3 months (some "volume buzz" apparent). It only includes shares that advanced for the day and that also showed a price increase over the last 5 trading days. The list is sorted by "Volume Buzz". Good for detecting shares undergoing institutional buying or few large buyers. Generally speaking these shares have a high "Volume Buzz" and a low "Activity Buzz". Illiquid shares are excluded.

Turbo looks for shares that are Magic Formula AND O'Shaughnessey candidates, with Piotroski scores of 7 8 or 9. The idea is that these shares qualify as candidates for at least 3 strategies so they should have "turbo-charged" odds of success! If you run this screen and don't see any yellow stars in the "MY SHARES" column then slap yourself on the wrist!

Bargains looks for liquid shares (at least 10 trades per day) that are over R1Bn in market-cap and that have a PVM of "Cheap" or "Bargain Basement". It further only looks at shares that have at least a trend score of 1 and have at least moderate financial health depicted by a Piotroski score of > 5.

Fallen Angels are shares that are making a trough reversal after a large decline of at least 10%. The list is sorted by Market-Capitalization. List size will vary by market conditions. In a strong bull or bear market the list will be very small, but at or near major troughs it will start growing. Useful to see in a major correction which shares are leading out of the trough into the next run-up.

On the move are shares in the TOP-100 that went up in price over the last 1, 5 and 20 days and out-performed 80% of the JSE over the last month.

Plummeting are shares of above-average market-cap that fell in price over the last 5 and 20 trading days, are showing no upward trend and fell in the bottom 20% of the JSE with regard to performance over the last month. The spark-line history charts of these shares should look terrible. In a strong upward move by the JSE it is always interesting to see the shares going counter-trend.

is the most powerful function button. It identifies shares of any liquidity, that had a sincerity score of 0 or 1 for quite a while and then suddenly have had this score rising to 3 or 4. This normally signals the end of a decline and beginning of a new up-leg for the share. This is of course when traders want to climb into the share to ride the up-leg.

The last function buttons to discuss are the PATTERN buttons shown below:

Clicking on any of these will reveal all the shares whose 40-day price history has displayed a pattern similar to that shown on the button. The first button shows shares with a 40-day price history displaying a U or V shape. The 2nd button shows shares that went more or less sideways for 10-15 days and then went up in price. The last button shows shares that went up in price over the last 10-20 days and then went sideways (possible peak). A fair amount of programming goes into trying to pick out these patterns and we hope to add more over time but we are sure you will find these useful. Click on them and then observe the history spark-line charts of all the shares presented and smile as you see the patterns before you. It's not perfect and requires a lot of "fuzzy logic" in our algorithms but it is effective.

The automated functions we provide present lists of shares worth further inspection. You can further whittle down long lists by applying more filters before arriving at your shortlists. Also, you may want to develop your own routines to identify share candidates, rather than use our standard ones. Either way, it is important for you to learn how to do your own filtering within JSE.

We will use the Liquidity indicator as an example to demonstrate filtering techniques and then perform a few examples of how to build your own screening routines.
You can use the liquidity indicator to sort and filter in many different ways. The procedure is the same for the rest of the columns in the JSW sheet - just some menu items may change depending on the data. The diagram below shows what menu appears when you click your mouse cursor on the drop-down filter-box in cell R4. You can see some obvious options for sorting, but the filtering is actually the more useful function. Filtering hides all shares that don't fit the specified criteria and is therefore more suitable for whittling down a list to discover interesting share candidates.

Option-1 : Filter by color

We have highlighted "Filter by Color" which reveals the various circles you can select in another menu that appears to the right. For example, selecting the half-filled in circle at the bottom of the list would restrict the list to only show shares that are "moderately liquid" This works for all the other columns that have icons (buttons, signal-strength and flags) and the appropriate icons will appear as options as demonstrated above. The downside with this method is that you can only select ONE icon.

Option-2 : Numbers filter
Selecting this reveals a host of filtering options based on the underlying value in the cells, in this instance "number of trades in 10 days". The "Greater/Less Than..." options are probably the most useful, but the "Above/Below average" and "Top 10" options are equally useful since you don't' have to remember the ranges of the underlying values. Using the "Top 10" option is very flexible, since clicking  it reveals the box shown above on the right where you can select "Top" or "Bottom" and 10 can actually be anything from 0 to 100 and you can filter out the top-x items or even more useful, the top-x percent of items. Setting this to "Top", "20" and "Percent" will only show those shares in the top 80th percentile of the column (in this case the top 20% of liquid shares.)

Option-3 : Check-list filter

This is probably more useful for checking or un-checking text items such as JSE Sectors or individual share names, since the check-list is much smaller than that of individual numbers that might appear in numerical cells. However bear in mind the program only displays the universe of items that appear in the column and so quite often it can also be useful to use this to check off various numerical data as well. Most useful for the share names and sectors and for the SAFETY columns.

In the example above for the Magic-Formula column, by un-checking the (Blanks) option you are instructing JSW to show you ALL the Magic Formula candidates. Alternatively, you could check only the 1's and 4's (and un-check all the others) to show you the TOP-5 Magic-Formula candidates in the TOP-50 and TOP-100 universes only (green and black buttons only)

Here we go through a few exercises to show how we built the automated functions. This is useful to demonstrate the power of complex filtering routines as well as show you how to build some of your own routines using the RECORD MACRO function in Excel.

If we filter the JSE by shares that have a full-score for their TREND ("T" in below image) then we have about 81 shares qualifying. If we further filter the list to only show shares with green flags in "NEW HI", meaning they just made new highs, then the list plunges to only 27 shares! Further filtering out the illiquid shares (those with a white circle in "LIQ 10d" meaning less than 100 trades in the last 10 days) reduces the list further to only 14 shares! The list appears below (note the date - do not action any trades on this info!) and is quite intriguing - it tells us a lot about the market (some columns excluded to allow for easier viewing)

First, we see that "Real Estate" dominates the list. This could be an excellent early warning that the entire listed property sector is making a large trend move. Maybe time to invest in a PTXSPY ETF. The second thing to note is that most of these shares are on a high relative strength reading. The third thing to note is that there is a very large "volume-buzz" on DDT and OCT. With DDT there is definitely some institutional activity related to the buyout announcement. There is a "activity buzz" on FFA and MTN, SHP and PAP - indicative of broad-based buying (or broad selling, if an institution is loading up on a illiquid share and paying many willing sellers a premium to do so)

Various "Leaders" screens are very useful to show you what shares drove the market for the day. You want to know why the market went down or up, especially if they are big moves. Why? Because they point you to trends and themes among the investing psychology allowing you to jump onto them or defend against them (if they are detrimental to your existing portfolio). They also give clues to institutional movement or general retail investor movement. The following "Leaders" screens are highly useful:

Volume Leaders UP/DOWN
Value Leaders UP/DOWN
Activity Leaders UP/DOWN (based on # trades)
Market-Cap Leaders UP/DOWN (movement of the largest shares)

Let us look at Volume Leaders UP as an example. Once you see how it is done it is very easy to do the exercise to perform the other leader screens/filters. First we filter the database with the top 5% of volume shares using the "Numbers Filter"-->"Top-10" on column-F "Last Volume" and setting it to "5" and "Percent" (see below)

You can  vary the level of the percentage (we use 5% to produce a list of about 15 shares, the higher the % the more shares will be shown). The next thing is to filter out advances or declines depending if you are looking at UP or DOWN leaders. Assume we want to see UP leaders, to determine who is driving the market up with volume. Then simply filter column-A "DIR" to only show advances as shown below. You can either filter by color and select the green UP arrow or tick the selection box to only include cells with a value of "1". A value of "0" will only show unchanged shares and a value of "-1" will only show declining shares.

By the now you will see the list on your page is very small. It is showing the top 5% of the most active shares by volume that advanced in price. All that is required now is to sort the list by price change. You can do an ascending (largest to smallest) sort by 1-day price change on column-N and then you have your final Volume Leaders UP report as shown below (some columns not shown)

To switch to a "Volume Leaders DOWN" report, simply change the filter on column-A "DIR" to only show declining shares (choose the red down arrow) and change the sort direction on column-N "%1D CHG" from smallest to largest and presto, you have your report (see below)

Note that ACL was not only a down-volume leader but its 1 week relative strength is appalling meaning its been haemorrhaging all of last week - and in a big way since its actually down 6.4% for the week when the whole market has been up 5%. It also has a activity buzz going on meaning widespread selling. Not a share we want to be going long on.

You can perform the exact exercise on other leader characteristics other than volume, such as column-G "# of Trades" or column-H "ZAR Trade Value" to get trade activity and value leaders UP/DN respectively.

JSW is an important step forward with us, and of course, with you. It puts more power into your hands, with more up-to-date information, and consolidates various powerful quantitative tools we used to publish in various different places on the web site under one umbrella where all the information can be seen together. Additionally the new automated screens  allow you to search and identify candidates that reflect your own risk profile and investment/trading style without having to wait for prompts from us all the time.

For us, the most important capability JSW introduces is to put the power of VALUE, SAFETY and TIMING (VST)  into your hands when identifying shares:

VALUE : PVM and YIELD gives you a powerful valuation metric, to ensure you do not overpay for shares.

SAFETY:The PIOTROSKI, CANSLIM, MAGIC FORMULA and O’SHAUGHNESSY flags give you peace of mind that the share has characteristics normally associated with successful companies.

TIMING: The TREND Meter, FA and Sin-V trough flags gives you important information on the price action of the share and if now is the right timing for a purchase or short-sale.

Coupling VST with our general market timing signals, that give the ebb and flow of the general market and economic “tides”, significantly stacks the odds in your favour.


RELATED TOPIC -->   | JSW Compatibility, Configuration & Installation Guide |
TUTORIAL-1 : Trading shares using ShareTrader tools in JSW |
TUTORIAL-2 : ShareTrader Advanced Features |
TUTORIAL-3 : New features for 2011 |
JSW and ShareTrader Training Videos |
Download JSW_MYSHARES.XLSX portfolio file |
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