EarningsBeats Digest

Published: Wed, 08/26/20

EarningsBeats.com Digest for August 26, 2020

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Making The Case For Our Strong AD ChartList

While our Model Portfolio has gained 134.85% in a little more than 21 months (and is 107 percentage points higher than the S&P 500 over the same time frame), I still might lean toward the Strong AD ChartList as EarningsBeats.com's "Product of the Year" for 2020. This ChartList is comprised of companies that saw their Accumulation/Distribution lines (AD lines) rising during the stock market rout in March 2020. A perfect example is Ameresco (AMRC), which broke out yet again on Tuesday:

Look at the large blue circles from late-February through mid-March. Do you see price action in a tailspin and plummetting quickly? But look at the AD line - it was rising throughout the price decline! That rising AD line alerted us to the fact that many stocks were gapping lower, but then being bought throughout the trading day. That's how the AD line rises. When AMRC finally cleared the February high in late-July, check out the volume that accompanied that move. After consolidating in sideways fashion for the past 8 weeks, AMRC broke out again on Tuesday and, once again, the volume was extremely heavy. Heavy construction ($DJUSHV) hasn't exactly been the place to be in the market, but AMRC has been a HUGE relative winner. We currently have 367 stocks on our Strong AD ChartList with many more upcoming breakouts on the horizon!

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
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