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T R A N S C R I P T

Identifying trading opportunities with Fidelity’s tools

Trey Jarrell: Thanks everyone for joining us. Trey Jarrell here, and Robert Kwon.

We’re both members of Fidelity’s Trading Strategy Desk team. We’ve got a

great session planned for you on identifying trading opportunities with

Fidelity’s tool. Throughout the session today, we’re going to be focusing on

live demonstration. We want to take you through a lot of the tools that we use

and help clients with on a day to day basis in Fidelity.com and Active Trader

Pro that focus on how you can find different trading opportunities.

Before we get into the screenshare portion, I do want to do a quick

introduction to our Strategy Desk team here... what Robert and myself do.

Obviously, the tools is a big area of focus for us but, you know, we do get into

more in depth conversations with clients here at Fidelity to work with you on

your trading strategies, and your trading plan. This can range from using

things like technical analysis to determine your entries and exits, or diving

deeper into options strategies here also. Aside from being able to work with

us over the phone and listen to our webinars, we actually host a number of

interactive online coaching sessions that focus on these same topics. So if you

like this idea of the online learning, but maybe you want to get into a little bit

of a smaller classroom where you can ask a few more questions here along the

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way, and a wider variety of topics, check out some of those sessions on

Fidelity.com/coaching. We also offer a number of four-week classrooms every

month that focus on more beginner topics, from ATP options and technical

analysis, so even if you’re just starting out, we definitely have some things here

for you as well.

So I’m going to go ahead and move over to the screenshare. While that is

loading up though, I’ll let Robert introduce himself.

Robert Kwon: Yeah, welcome everybody, thanks for joining us today. So my name’s

Robert Kwon, I work here with Trey Jarrell down in our Florida location.

Hopefully some of you in the audience have worked with us one on one. And

one of the main things we always talk about is the tools, right? The tools that

Fidelity provides for you to try to help you kind of navigate all the different

types of investments and potential trades that are out there, right? And the

great news is, we’re going to go over some things that focus on fundamentals,

so if you’re somebody who pays attention to, you know, the balance sheet, the

PE ratio, those types of things, right, there’s plenty of tools for you. But also, if

you’re a technical trader, right… what’s the technical analysis that’s based off

of price action and volume, right? We actually have tools that can help you

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identify based off a technical setup, and of course, if you want to marry the

two styles together, you can certainly do that as well.

So, Trey’s going to kick us off here, and then we’re going to go through not all

of our tools, but what we think may be the most kind of useful ones to

anybody just getting started, right? There’s so many different companies out

there, different sectors, different locations, right? Different methods of

making decisions, and we’re going to cover, right, a few of those today, and

hopefully this will help you, you know, try to make a decision in today’s

marketplace, so.

Trey Jarrell: Yeah, perfect, thanks Rob. And where I’m going to get us started

off, hopefully a page everyone is familiar with, or you’ve seen before. If not,

how we got to this page, on Fidelity.com, going to the news and research

menu, and then stocks. And this is going to take us right to our main stock

research center. And there’s a ton of great information right on this page for

helping us find trading opportunities, and you know, unfortunately, this is an

area that I think a lot of people we talk to kind of skip over, and maybe jump

right into a screener, or jump into an individual stock. But a lot of great

information just right here, right at the forefront for helping us find different

opportunities out there.

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And I want to start right at the middle of the page here, on this first tab that’s

highlighted as our top rated by sector. So this is a tool that’s actually going to

show us, based on sector, the number one stock here, and that number one

stock is actually identified by using the equity summary score. Now if you

haven’t heard of the equity summary score, this is a feature that we offer, it’s

provided by Starmine, a branch of Refinitiv. And the equity summary score

helps take out some of the noise of maybe reviewing analyst opinions, right?

If you’ve ever looked at analyst opinions, you know it can get a little bit

confusing, you’ll have a number of analysts with buy, a number of analysts

with sell, a number with hold. And it might be hard to identify, you know,

whose advice to follow here. What the equity summary score is doing is

actually kind of looking at a lot of those analyst opinions from a consolidated

view. It looks back at the last two years’ sector performance for those analysts.

And it actually weights those analysts on how well they’ve done in a given

sector. So when it actually compiles this score that we see online, that’s taking

a look at, and giving additional weighting, to analysts who have done a better

job with their recommendations in a particular sector. And taking weighting

away from maybe some of those who have not been accurate as well. So, the

idea here is to maybe give you one score that helps you, you know, identify

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maybe the analyst opinion, but giving that additional weight to the ones who

have done well.

So taking a look at the tool, the table that’s broken out here, you’ll have all of

the various sectors, the symbol that you will see here next is that top rated

symbol in this sector, and next you’ll have the actual equity summary score.

So this score, 0.1 is going to be the lowest, 10 is going to be the highest. So as

you’ll see with being the top rated, most of these falling in the upper nines,

and you’ve got a couple of tens on here as well. So, but this will give you that

idea of the overall score.

The next column over’s going to give you the one month change. So, you

know, when we look at the equity summary score, kind of an interesting thing

to think about is that, you know, that score is changing here as well. And we

can actually look back and see the changes in that score, and very easy to do

from this page. If we just hover our mouse over the change, a quick chart will

pull up here ,and you can see the history. It looks like it’s actually spent a lot of

time in this bullish or very bullish range. But about a month ago, it dipped

down in neutral territory, it has really risen since then. So, you can see kind of

the increase in analyst sentiment here over the last month as well.

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Now moving over, you can see the underlying analyst opinions. This will tell

you how many different analysts are actually in the, measured into the equity

summary score. One bullish and two neutral analysts just gives us a quick

summary here as well. And then on the far right, we can see how many very

bullish stocks are actually within this sector. So communication services, this

first one, you know, there’s only two stocks that actually fall very bullish in this

sector. So if this is a sector that you were interested in, maybe you’d like to

look at it from a stock exposure, this tool will actually build you right into the

screen. As we go through today’s presentation, we are going to spend some

more time in the screener, and showing you how to use that, as well as talk a

little bit more about sector analysis and how that can build in as well. But a

great tool to get you started out, maybe give you some ideas right on the front

of Fidelity.com’s stock research.

You know, another tool that I like to point out on here, and this is one that I

look at quite often here, and another one I don’t think too many clients are

familiar with that I’ve spoken to, is the orders by Fidelity customers, and the

tab description gives it away, it’s just that, right? This is telling us what are

Fidelity customers trading here today? When we come to this tool, we’re

going to get a list of symbols, buy/sell ratios, sector, as well as latest news.

There’s a link at the bottom to see more orders by Fidelity customers, and I

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want to click this, because this just brings us up a little bit more of a detailed

table. But at any time, we can pull this up and see what’s happening, you

know, across the Fidelity platform here today, what are your, you know, the

other clients here, trading right now, TVIX actually popping in at number one,

down on the day. It actually tells you how many buys versus sell orders are

actually in here as well.

Now this is an interesting tool I think if you’re thinking about ideas, what I

found, you know, Fidelity clients are very good at keeping up with the news,

keeping up with earnings announcements, and we’ll see a lot of activity maybe

coming into some of these names that are active across the overall market.

But maybe give you a good jumping off point for doing some additional

research if you’re looking for some stocks that are active from our platform

here on a given day.

So I’m going to move back to the stock research center here. On the right-

hand side, you know, another couple of tools here that are very interesting for

idea generation, you do have this earnings calendar over here, I won’t go into

too much detail in here, as it is just as it stands, as it states here, earnings, this

is giving us a calendar of companies that are reporting earnings, if you are the

type of trader that likes to look for those upcoming announcements and do

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some analysis, you can jump in this tool to find upcoming announcements.

On the right-hand side of the earnings, you’ll see two more. These are

upgrades and downgrades. And what this is doing, if you do like to follow

those analyst opinions, and as we see, if you follow those, you know, a number

of stocks before, you’ll notice, you know, if you see that analyst opinion come

in the news, a lot of times we’ll get some moving, movement in that

underlying. This is going to actually just give you a list of different analysts that

have made an upgrade or downgrade.

Now by default, when you come in this tool, our time period is going to be

today. So what we’re actually going to get a list of is how many upgrades have

we had here today? It’ll give us some detail about which analyst firm, what

their rating is, and what their previous rating was as well. So it can be really

just another good point to get you started. From this tool, if you do want to

look into a little bit more detail on any of these stocks, a couple of things you

can do, if you actually click on the symbol here, we’ll just take a look at this first

one that was upgraded by Raymond James. This will come in and give you

any other recent analyst opinion. So this actually filters it out by stock here for

us. And this particular security, Ocean First, looks like we only have Raymond

James on here today. Nothing additional. If you wanted to actually get into

the research for this company, you can click the name on here as well, this will

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actually bring you right back into that stock research page, bring you to that

snapshot, and allow you to do some additional research on the company here

itself.

On the upgrades and downgrades, I’ll put it on the right-hand side, too. You

can come in here and change the filters on this tool, if you want to look over

different time periods. When we came into this one, it was set for today, but

you can look over the past one, two, three, or four weeks. You can sort this by

date or sector. You could also add, if you want to look specifically at upgrades

or downgrades, you can look for coverage being initiated, or you could even

check for coverage being dropped here, as well. So another great place, a

wealth of information in here, it really keeps you up to date with what’s

happening across the analyst world here as well.

So let’s go back to the main stock research page, just going right back to this

one, and I’m going to scroll down a little bit further on the page, and I think

these ones down here just very interesting, very useful, if you’d like to come in

and get some different ideas every single day, and the first one I want to look

at, these are our bulls and bears of the day, this is in two different sections, the

first is fundamental, and the second tab under here is for technicals.

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Now the fundamental analysis, this is provided by Zacks Investment Research,

and every day, Zack will put out a bullish stock, as well as a bearish stock. Now

the stocks that they actually choose on here, they’re going to pick reports that

are, stocks that have maybe recently been perhaps reinitiated, recent

upgrades here, but also stocks that they think are going to do, overperform for

the bullish side, or underperform over the next six months. If you run into any

of these tools, if you ever forget about their methodology, what exactly they’re

looking at, you could simply click the methodology, and it will pull up and give

you a quick description of exactly what that tool was here as well.

The next one down is our technical events. So technical events is actually

going to be provided by another research firm, which is Recognia. You’ll

notice the Recognia and Trading Central name in quite a few of the tools that

we offer here on Fidelity.com and Active Trader Pro. And what Recognia does

is they actually will run a number of technical scans. So this particular tool is

going to be based on their pattern recognition system. They also run scans on

different indicators, do things like support and resistance analysis, and help

you out with stop recognition as well. So a lot of powerful things that they

actually put out here for us.

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Now, if we wanted to get a little bit more information, if you’re looking at this,

and you see, you know, these names come up, and we do see a familiar name,

JP Morgan here, and you see the pattern is continuation diamond, and maybe

you’ve never heard of a continuation diamond, are not familiar with what it is.

You can come in here and get a little bit more information as to details about

this pattern, and why it’s considered bullish. First thing you do, if you hover

your mouse over it, we’ll tell you the event date that’s actually taking place.

What’s the actual opportunity here, right? For this particular pattern, it’s a

long-term bullish pattern here as well. And one of the things that’s interesting

about Recognia is they will put a target price in here as well. So that’s a target

price in here of 132 to 138, and the duration of this pattern, as you can see,

375 days of very long-term, that it’s taken for this pattern to actually formulate.

If you go ahead and click on the continuation diamond description here, you

will get a little bit more of a detailed page that pops up, so if it is something

you’re not familiar with, you can come in here and get some detail on this

particular pattern. And a quick write-up as well as some information on the

chart also. On the right-hand side of this tool, you’ll see there is a link to view

technical analysis in advanced chart. I do want to click this, because if you are,

you’re looking at this tool from charting, I want to show you how to add it in

the chart. If you use Active Trader Pro for your charting, which is definitely a

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recommendation, the way that you’re going to add this is exactly the same.

You go to the technical analysis tool at the top, you go to patterns and events,

this is already set for bullish patterns. So I’m just going to apply. At the

bottom of our screen, we’ll see we’ve got quite a few different patterns that

are available here today. What we can do with any of these, if we actually click

the name of the particular pattern, this will actually allow us to plot this right

into the chart. You’ll notice all of these different technical events that are

available to view here today, view details tells us a little bit more about that

specific event, and add to chart is going to be what actually plots it directly into

the chart for us. So, you know, I like thinking about it this way, you know, the

stock research is going to give you that idea, you can learn about the pattern,

but then you could come in and start to incorporate this into any existing

analysis that you’re using, right? If you’re already using charts, and this is just

one additional thing that you can build into the analysis that you’re already

doing here as well.

But you will notice on the stock research, I’m going to just jump back to this,

you do have something for everyone, right? Not only do we have bullish

events, you do have bearish events here as well. So if you are playing the

short side of the market, or you know, looking for that downward move, you

will get those patterns on the right-hand side here as well.

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So last thing I want to show from this main page here before we get over to

Robert to dive into the stock screener, it’s on the left-hand side, we can get a

little bit more information about some of these analyst firms. So we’ve talked

about a couple, you know, here already. You know, using the equity summary

score, Zacks for fundamental, Recognia for technical, there are quite a few

different number of firms that are still available out there for you, and they can

help you with identifying different opportunities. By clicking this research

firms on the left-hand side, this is going to give you a list of the various firms

that are out there. And also, what their methodology is, right? So maybe, you

know, you’re someone that uses fundamental analysis and you’re comfortable

doing it on your own. But you know, Rob mentioned earlier the idea of maybe

marrying these two types of analysis. You want to come down and find a

technical analyst, right? You can do that right on this page. Or maybe you’re

like Robert and myself, you prefer the technicals, and maybe you want to let

the analysts do the fundamental analysis listing for you. You can think about it

that way here, as well.

But if you come down to any of these analyst firms, I’m going to click on Zacks

as the one that we’ve talked about. You know, a couple other interesting

features that they have available. Once we click on the analyst firm here, this

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is going to bring us into a little bit more of a detailed write-up about that firm.

You see we get very basic information on this main page, right? What’s the

analyst analysis model, right? They stick mostly to fundamentals and value.

But this will also tell us some of the different reports that they have available

here as well. Let’s see. And Zacks might be taking just a moment to load here.

Let’s try another one on it here, see if we can get this to pull up.

And sorry about that, getting just a little bit of slowness. That’s OK. If you’re

following along at home, right, if you actually go into Zacks Investment

Research, you’ll actually notice we’ve got a number of other reports that they

do have available. And in the terms of thinking about idea generation, they

publish things like research reports, they have a focus list that will give you a

number of individual stocks that they follow and build model portfolios. But

sometimes when you see, you know, a firm that you may like, and you’re

following just recommendations on individual stocks, you know, come back in

here, they may have some additional reports that we have available that can

kind of keep you building on new ideas here going forward.

So let’s go ahead, I’m going to get it over to -- seems to be a little slow loading

this up, we’ll go ahead and jump into the stock screener here next, and talk

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about some of the methodology there. I’ll turn it over to Robert to take a look

at that.

Robert Kwon: Yeah, terrific. Welcome everybody again, Trey kind of touched

upon some of the tools that kind of stare at you right from the at bat, right?

But what if you know what you’re trying to find, right? What if you have a list

of criteria, and you want to see what’s meeting that criteria right now, right?

From a fundamental standpoint, or even from a technical standpoint. So what

we have here is we have a screener, right? Basically saying here is the stuff I

want to scan for, and show me what’s available. And then once you find

something, you can then incorporate, obviously, your trading or investment

process, to see and do your due diligence to see if it’s worth your merit, OK?

So to get here, it’s again, news and research, and then stocks. And then right

on the left side of the screen, you’re going to see the stock screener, and you

can obviously see at the top that you can also scan for exchange traded funds,

closed-end funds, and preferred securities.

So right off the bat, what we can look at is what do other people scan for,

right? So you can see here on the right, there’s some kind of prebuilt popular

topics, OK, dividend yield is a very popular one, trying to generate some

income. OK. Sector, different areas of the market, Trey touched upon the

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equity summary score. OK, things like market cap, so maybe you want to only

stick with large companies, OK, or maybe you’re trying to find smaller cap

companies like those in the Russell, say Russell versus the S&P 500. That type

of thing. So, if we click on them, you’ll see that there’s, right, specific criteria

that you can set, OK, and that way you can isolate a very targeted set of

results. OK? And then, what you can also do is you can combine these. So

say we only want to deal with large cap companies, and then we also want to

target, right, medium to very high dividend yield, that type of thing. OK?

So let’s actually click on some of these preset ones, so those are the very

simple but popular ones. And let’s take a look at some of these expert

strategies. So, what you can see here, right, if it cooperates. So what this is

actually going to do is it’s actually going to be a collection, right, of different

settings that you could take individually on your own. So look at these

strategies right here. Growth, growth value, rate value. Hey, look at this

technical one, OK, and there’s also different themes. OK? So, what we can do

here is we can kind of, right, even if it’s not our own specific criteria, maybe

see what these expert scans, right, are selecting, and then see if that’s

something that’s interesting to you.

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So I’ll just randomly pick technical, as Trey mentioned, right? That’s my

preferred way of making trading decisions. And you can see there’s all these

kind of catchy names here, right? So what’s this one over here? Bull, ride,

short-term, powered by Recognia. So it’s going to give you a little description

of what it’s trying to find, OK, and the rationale behind it. So this one is going

to be very short-term, right, bullish opportunities. And you can see on the left

side of the screen that different criteria that it actually uses to generate these

particular results. OK? So again, whether on your own, OK, or somebody

else’s idea, OK, what you can do is once you get a list of results, if it’s

something that seems interesting to you, then once again you’re going to want

to run it through your own process, OK, do your own due diligence, and see if

it merits, right, consideration. All right?

So, let’s just quickly go back, and what we can also see here, right, is if we

don’t want to take somebody else’s screen, we can look at all these different,

right, criteria to navigate, right, our own screen. So here’s company facts.

Right? Security type, OK, what does that mean? Well, are we scanning for

stock, REITs, etc. All right? Market cap, different sectors, other options on it.

All right? Obviously the dividends is a very popular one. OK? Dividend,

dividend yield, dividend payout, growth rate. Right? Earnings. All of these

fundamental factors. Now one thing you want to be aware of is when we say

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we base our decisions on fundamentals, it’s not like an informal, I like this

company, right? It’s typically some type of valuation assessment based off the

data. You know, typically we get that from their financial reports, and in their

earnings reports. Right? So you can, right, specifically, right, screen, because

it’s going to be, right, numbers-driven.

Now, this is my favorite section, of course, which is the technicals. Right, we

get this question a lot, “Hey, is there any way I can screen for technical

setups?” Now this is going to be linked to some of the information that Trey

showed you, right, on that JP Morgan one. So, what does it look like in the

screen versus on the chart. Well here, we have oscillator events. OK? And we

have, you know, something for both sides, bullish or bearish. So let’s just stick

with the bullish, and take a look and see what can we do. Well if you expand

this, you can see a list of very popular indicators that you may use on your

charts, OK? Or you may be new to them, you know, Bollinger bands. The

volatility, OK, based indicator, MACD, right, moving average convergence

divergence, that’s based off, you know, exponential moving averages, OK?

Stochastics, relative strength, so let’s just click on relative strength and see

what pops up. OK? There may be companies that you’ve never heard of,

there may be companies that you’re totally familiar with.

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And one thing you can do that’s very useful here is well, what does my stock

look like? So, let’s take a look here. All right, so you can add a couple of your

own stocks to see, even though it’s not part of your scan, well where does it

show up, right, based off the criteria that I’ve selected. OK? So, if you click on

these different tabs at the top, we’re going to get some very useful

information, OK, company name, market cap, dividend yield, etc. Obviously,

very important is, well how has this thing performed? OK. So we can start

looking at like different performance metrics, in addition to the company’s

profile. Here’s a very useful one. Valuation growth and ownership. OK, a lot

of people pay special attention to, you know, institutional ownership and

things like that. OK, and obviously, not just the absolute number, but the

change, right, is that getting better or worse, so to speak, in your own opinion?

And of course we have the analysts’ opinions that Trey touched upon. Right.

Right, so you can see where your company falls in line, right? Or you can see

where these other companies fall in line. Now the important thing to

remember here is we’re trying to make the most effective decision possible,

right? So we get additional information to say hey, why is this stock not doing

what I want it to do, what’s going on here? OK, so that will take us into kind of

our next discussion, which is going to be is there something kind of beyond

the surface that I’m not seeing? Right, so instead of starting from the bottom

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up, looking at a specific company, perhaps you want to step back and kind of

take a, you know, a kind of bird’s eye view of what’s going on, not just in that

specific sector or industry that the company operates in, right, but maybe on a

more global scale, OK, or from a business perspective, a business cycle

perspective.

So this is our markets and sectors, this is probably one of the most useful

pages on the entire website, in my opinion. It really just shows you what’s

going on around the world, and on the right side of the screen, you can see

today, we are having a broad rally. OK? Nice bounce back day, looks like

there was some positive commentary, right, in the news. And the market has

taken off. But some days, it’s not going to be as clear. Some sectors are up,

some are down, you can see in this snapshot, is there some type of rotation

going on? OK, and you can incorporate that potentially into your investing or

trading ideas. And within these sectors, you can see the different industries.

OK? Now, let’s take a look at consumer discretionary.

Right, so it looks like one industry in there is not doing very well, but the

remainder are. So you might be saying, right, what is sector-based investing,

what is business cycle investing? And why might people use that in their

decision making process? Well if you click on the sectors and industries

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overview, OK, what we’re going to find, right, is this link to the business cycle.

Now what Fidelity provides for you here is an assessment of where we feel we

are in the business cycle, and this is not based necessarily on time, right? So

we could be in late stage for a while. OK, we could be in any one of these

things for a while. And they’re going to continuously update their outlook

from time to time, and you’ll see that on the right side of the screen. You see

the different dates there. OK, and once they’ve made that assessment, well

they’ve done a lot of extensive historical research to say given where we are, is

there clear signs of either under or overperformance, or maybe is there

actually no clear sign whatsoever? And what they’ve found is that depending

on your correct assessment of the business cycle, there are patterns from time

to time.

So what’s being shown here is you see some white space, you see a plus, you

see a double plus, you see a minus, or a double minus. And what that

indicates is either clear over or underperformance. So the double plus would

be clear, OK, outperformance, the double minus is clear underperformance.

The white space is there’s really nothing to be discerned from the data, right?

The single plus or the single minus is it does show signs, but it’s not as

consistent, right, as the double.

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So what does that mean, as far as making our own decisions? Well what if you

own something, right, like energy, right? Or healthcare, or consumer staples?

But conversely, what if you own something like real estate, but you feel like

we’re heading into a recession? Right, now you can rely on Fidelity’s opinion,

or make your own assessment. Well it shows here that clearly, right, there is

underperformance in real estate in times of recession. So what might we do?

Well you don’t have to necessarily abandon the whole area, right? But maybe

you might want to de-risk, or underweight it, OK? Because historically, it

would perform, right, worse than say healthcare.

And that brings us to this construct of this business cycle investment, right? So

if you click on the weighting recommendations, what you’re going to see is

two different, or two or three different suggestions for, OK, making these

types of decisions in your diversified portfolio. Now obviously, you could

simply just invest in quote, “The market,” right? We have a lot of index funds,

index ETFs, OK, sector ETFs can come into play. If you want to have a more

targeted, OK, distribution of your risk, OK, versus just being what we call

market weight. Market weight just means that’s literally what it encompasses

as far as the market. All right, so what you can see here is you see these little

donuts, and you have these three firms, and surprise, surprise, they don’t all

universally agree with each other. So remember, there is no necessarily

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correct way to do this, you’re still applying your own filter to say does this

make sense for me? All right?

So if you’ve decided hey, maybe this makes sense, right, I like this approach,

well how do we go about finding investments? So on this snapshot, again,

we’re seeing the different sectors, we’re seeing different industries, right, well

what’s this one over here? Oh, find investments. OK, so again, there’s many

different ways to do similar things at Fidelity. We do that to make it easier for

you. All right? But this is a way that you can come in here and quickly find

different investments that might merit your attention and might merit your

investing capital. So to kind of dive through that, let me pass it back over to

Trey, and he’ll take a look at how to find some ETFs.

Trey Jarrell: Yeah, absolutely. And what’s great about this screen that Rob has

us on here, right, is this takes us into each of the individual screeners, right,

depending on where we go. So, you know, if you do like this idea of sector

research, but maybe you prefer to pick an individual stock, you can click from

this to get you right into the stock screener. But maybe you like the idea of an

ETF or ETP, and the reason you might choose an ETF over a stock, maybe you,

you know, are looking at it purely from that sector standpoint, I think the sector

is going to overperform, rather than trying to pick maybe one or two names,

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why don’t I just invest in the overall sector here as well? So, you know, once

we click the ETFs, ETPs, you’ll actually get a list of the individual sectors, you

could simply click one of these to jump right into a screen. I do want to show

everyone how to get into the screen as well from scratch, if you just happen to

be coming in here. And it’ll take us to the same place, which is going to be

under the news and research, and ETFs, right? So this will bring us right to our

main ETFs snapshot page, a ton of great information on here and other

opportunities for you to, you know, find individual investments.

So keep in mind, right on the top of the page here, you do have some

interesting searches. The first one is a search by stock. You know, if you had

maybe a particular stock that you wanted to find an ETF that held that

particular name, you can actually do a quick scan for those as well. Or run a

comparison between different ETFs, or find some other similar ETFs out there

that might be near what you’re looking for. But if we scroll down, we’re

actually going to go ahead and see the ETF screener that’s listed down here

below. And there’s a couple of prebuilt screens, right? Like much like our

stock screener had some prebuilt information, the ETF one does as well. First

couple of ones you’ll see, the Fidelity logo here will actually take you to

Fidelity funds, we have an iShares logo over here, as well as this plus sign.

These are all ones that are going to help you identify commission-free funds,

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you’ll see right now that we do offer 503 different ETFs that are commission-

free. So, if you, you know, do want to save that 4.95, you can actually build

these right into your screen.

But past that, you’ll notice a couple other prebuilts here. We have market cap,

what Robert has led us into is sectors. We can also look for fixed income, or if

we wanted to find a socially responsible, another theme that has been popular

as of late, you can click in these as well. But we’ll stick to the sector idea here

as well to continue on with that. Once I click this, you’ll see this is very familiar

to where Rob had us on that find ETF page here within the sector research,

right, that’s going to give us that breakdown of the various sectors here as

well. So, why don’t we go ahead, one of the ones that Rob had pointed out in

the business cycle is a late phase and recession consistent overperform was

consumer staples. We’re going to go ahead and check out this one.

One thing I’ll point out, you’ll notice going through the ETF screener, this tells

you how many actual ETFs are available in that sector, right? So right now you

have 22 ETFs. If you’re doing ETF scans for the first time, and you’re coming

from stocks, quite a big difference, right? With stocks you have a very, very

broad universe that we have to narrow down. Often hundreds of stocks in

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each sector. But when we come down to ETFs, it’s going to be a much simpler

decision for us. We’ve already narrowed it down to just 22.

Now when we think about ETFs, a couple of the other things that we want to

think about here, right, is that we’ve, you know, in this case we already know

what sector we might be interested in, how do we actually narrow down which

ETF might work for us to give us a sector coverage? So a lot of the different

themes that come into ETF screening are focusing more on things like net

expense ratio, right? How much is this fund actually charging, right? This is a

fund, someone is managing it, what are they charging to do so? Many ETFs

are simply just tracking an index, right? So if their job is to track an index, you

know, we might want to know, if we’re scanning for a fund, how well are they

doing their job at that?

You know, another concern to come in with ETFs is liquidity. Right? There’s

been a ton of ETFs added to the market over the years, and as such, some of

these funds maybe didn’t take off as well as others, can be very small, maybe

don’t have a ton of liquidity, where others may offer quite a bit for us. So it’s

absolutely something that we want to be paying attention to.

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You know, a couple of different ways that we can actually run the scans here as

well. Rob showed us here before on the left-hand side, we can click through

these particular menus, we can actually enter specific search criteria if we want

to type it in. The trick that I like to use though is just clicking this view all. This

shows us just a breakdown of what is in each of those dropdown menus, and

allows you to scroll through and maybe click a few things that are of particular

interest to you. So I mentioned, you know, the net expense ratio, right, that’s

on here for us. Now we’ve already entered this from the sector objective, so

that’s already filled out here for us. We can add some additional things,

tracking error, right, this is how well the fund is actually doing at tracking its

index, right? And average monthly bid-ask ratio. This tells us, gives us a good

indication of liquidity, right? How tight is that bid-ask? Is it wide, or is it

narrow? So these are just a few basic criteria we can add to help us narrow

things down. Once we do that, we can click apply criteria, and it will add these

criteria on the left-hand side for us.

From here, we do have to make a couple of selections. So first, our net

expense ratio. Well this is how much we’re paying the fund to manage. Well

this is one that we’d want to obviously be as low as possible here. Right? Our

tracking error, how well is this fund doing? Tracking its index, well a low

tracking error is going to be a good thing for us, telling us it’s doing a very

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good job. And average monthly bid-ask ratio, well you see the four funds that

it’s now narrowed it down to are all very low, these ones, you know, are very

liquid funds that it’s going to come down to.

So it’s just a couple of simple selections, right? We’ve taken this list down

from 22 down to 4. The four that we see here, you will notice this asterisk next

to two of these, right? These are going to be two funds that are available

commission-free. The other two on here are not. The Fidelity logo will

indicate that this is one of the Fidelity funds.

So if you’ve gotten yourself to this point, and you’d like to narrow it down even

further from this tool, you can actually check each of these fund names, and

jump into a comparison if you’d like, check each of these, go to the dropdown

menu above it. Select compare. And then click go, right? And we’re going to

have a side by side comparison of each of these four funds. It does have some

basic criteria entered in here already. But at the top right, we do have a

dropdown menu where you can come in and look at additional criteria, right, if

you want to sort by performance, analyst ratings, technical factors,

fundamentals, all of these can be searched here as well.

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Let’s show one other one, which is ETP details. This is always an interesting

one. I mentioned here many ETFs out there are actually just passively

managed, their job is to track a particular index, and you can actually see that

in investment philosophy, right? Three of these funds are passively managed,

right? They’re just tracking an index. But you do see one outlier here, this

fund is actually actively managed. So they are making a slight difference,

perhaps, from the index. But this is something you’d absolutely be, want to be

aware of if you’re purchasing this particular fund. And do some research

about their management philosophy.

You know, from here I’d say it’s always nice to do a little bit of additional

research. Why don’t we click one of the ETFs in here, and go back to the --

this’ll take us to the ETF snapshot page. You know, from this window, we’ll be

able to see the fund’s profile a little bit more detail, we can dive into the

holdings of the fund. We can see the chart of the fund here as well. Recent

news, all this information on the page as well.

I did want to comment on the analyst ratings here for ETFs as well. We talked

a lot about the analyst rankings here for stocks, we do have third-party analyst

ratings available for ETFs here, as well. The way ETF analysts do their ratings

are a little bit different. So rather than, you know, maybe coming out with that

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buy or sell or hold, based on the fundamental or technical, many of the

analysts that track ETFs are actually just looking at some of those factors that I

talked about in the screen, right? How well does a particular fund do at

tracking its index, right? How efficient is it trading? So if you are following

analyst ratings, keep that in mind, and you can get some more detail here.

Let’s take a look at this first one, right, fact set, for example. If you click the

details, this tells you what the ratings are. So this is an A rating, so they do the,

you know, school grading system, right, A to F, with A being the best, F being

bad.

And they really only have three criteria. An interesting acronym that they’ve

picked. Efficiency, tradability, and fit. ETF here. And that’s all they’re looking

for with these ones. Efficient, how well does it do at tracking an index?

Tradability, how liquid is this, right? Ninety-nine for this particular fund. And

how does it fit, right? How does it actually compare to the relative broad

market portfolio? Actually gives us a 95. So that’s where that A rating comes

in as well.

So I like to bring this up, these analyst ratings can be screened as well. So, you

know, some of those criteria that I added in there before, you know, if you

were comfortable with this particular analyst, and the way that they make their

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ratings, well you could just screen for that here instead. Let me show you how

we do that, and then we’ll jump over to a quick tool in Active Trader Pro after

that here next. By going to the launch ETF screener, we’re going to go down

to analyst ratings, we’ll do fact set, and we’ll choose that A rating. And one

other criteria that we did have in this particular fund was that sector objective,

let’s go ahead and build that one in here as well, the sector was consumer

staples. And I’m just going to type that in here for us briefly, take us right back

to that similar screen that we had.

All right, and this is now going to list these various staples funds here for us.

But we can build in that specific criteria in here, four fact set. Maybe help us

narrow down some of those particular names that we have here as well.

Looking simply for ones that have that liquidity, that fit to the index, but take a

look through the different analysts, they all have a little different methodology,

but kind of that same mindset here of hey, what’s going to be a fund that fits

into some of these basic criteria that we need to think about?

So, I’m going to jump over next to Active Trader Pro here for the last couple of

minutes, I want to show one other tool for everyone here today. I’ve got

Active Trader Pro pulled up here in the background for us. And I’ve got just

two windows up here. The filters, and to the right I just have a chart pulled up

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here, I’ll kind of go through that as we look at the filters. In Active Trader Pro,

you can get to the filters by going to the quotes and watch list, and then by

going into the filters. And when you get into the filters, you’re going to have

three tabs at the top here.

First is markets, second is technicals, and third is options. Right? So when

we’re talking about idea generation, right, this is a tool that is, as you notice,

following on my screen, this is streaming, we have real-time updates

happening right now. And this is going to allow us to look at many different

aspects of the market to maybe find stock share for us, that gives us a starting

point to do some additional research. Now under markets, you’ll see we have

a dropdown menu, our default in here is most active, most active is going to

be talking about volume, right, looking for underlyings that are trading here

today, right? Top one, one that’s usually very active, is SPY. But you’ll have a

number of individual stocks here as well. This is going to start by looking at

across all markets, however if you wanted, you could sort this down by a

particular exchange, or even a particular index here also. You’ll also see this is

where we can find things like our 52-week highs and lows, our dollar gainers,

dollar losers, percent gainers, percent losers, as well as volume movers, and

also social sentiment in here as well.

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Now I’m going to jump to the 52-week highs. Once I change it to this on the

right-hand side, you’ll see we do have another dropdown menu, we do have

two filters on here. This will sort by 5 to $20 stocks, as well as $20-plus stocks.

So if you’d like to filter out some of the low names, you can do that. So you

know, why we might be looking at 52-week highs, well maybe you’re someone

who likes to trade off of momentum, you know, you’re looking for a stock

that’s showing that it’s breaking out, and you think it may have some room to

run, this is going to give you a list of stocks today that are making 52-week

highs, no shortages of names today on a big day like today.

The reason I wanted to have the chart on here, this is a very useful feature if

you are going through filters, if I just double click the name of one of these

stocks, as long as I have my chart linked, which is going to be done by making

sure this is gray at the top, this is going to fill that chart into us on the right-

hand side. And allow us to now take a look at this company and see what’s

actually been happening. I’ll pull up a six-month here, I mentioned 52-week

high, well you’ll see this gap up today was trading just yesterday around 170,

up to 205, so big upward move here on this name today. So it could be a

great place for you, again, find some ideas.

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I want to talk about the next tab over here too, you know, Rob and I have

mentioned our interest in, you know, following technicals. And when Rob was

going through the screener, right, he showed us how we can actually add a

number of those different technical indicators that we can screen for. This tool

actually has a number of prebuilt technical indicators in here as well. These

scans are already prebuilt, so you’re not actually coming through and making

any edits. Just giving us the particular detail, if you find some scans in here

that you like, right, you can always come back into this tool every day and

check and see what names are pulling up there.

So the default scan in here is going to be uptrend stocks. This dropdown

menu will allow us to choose between different ones. On the right-hand side,

there’s another dropdown menu, gives us a little bit more detail about the

scan. So in this case, we have 3% on 15% higher volume, and what this

actually means to us here, it’s telling us that we’re looking for a 3% move on

15% higher volume. Now you’ll notice some of these stocks are actually down

here today, so you’re probably saying hey, why isn’t this up 3%? Well this 3%

isn’t necessarily meaning today, it’s over the last three days here as well.

So something you probably wouldn’t be familiar with just looking at the tool,

so as you’re going through this for the first time, if you want to learn about the

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specifics of the criteria, you can find that by clicking the descriptions menu on

the right-hand side, I’ll give everyone a quick show of this here right now.

Under descriptions, we’re going to go to filter descriptions, and you’ll see

starting from the most actives that we talked about, all the way down here,

into our uptrend stocks, the one that we have pulled up here right now. Oh,

might have skipped through it just a little bit. There we go. And finding stocks

trading with current volume at least 15% higher than the one month average.

So this description, it’s just going to give you that full detail of each of the

scans that you have in here, but can be very helpful for you as well.

Going back through the menu, a few of the other ones that are common here

as well, you’ll see things like our moving averages. We can look for crossovers,

RSI index, Bollinger bands, parabolic SAR, morning momentum, as well as

stochastics information as well. If we come to any of these names, you get a

little bit more detail. Moving averages certainly common type of analysis we’ll

see in technicals, if we look at the dropdown menu, we’ll get a little bit more

specifics, right, 20/50 means we’re looking at a 20 over 50 day on 15% higher

volume. Right? Volume is included in here, this is one of the methods we use

of confirmation. When we use technical analysis, we generally don’t focus on

just one specific indicator, or one specific type, we want to combine indicators

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of different types together to help us out, give us that preponderance of

evidence that allows us to make a decision.

All right, if you are using something like a moving average scan, for example,

you know, great thing to get in the habit of, you double-click the name, it’ll pull

up into your chart. Remember, you can actually add the indicators as well if

you want to follow along as to exactly what point they’re doing. This tool does

actually use an exponential moving average. I’m going to add these very

quickly here on the chart, you have a 20, which is part of our scan, we’re going

to change one of these to a 50 by clicking on modify, typing 50, and what we’ll

see here, the 50 and the 20, adding onto the chart, and we’ll see that

crossover taking place here with that 20 crossing above the 50 here recently.

So allow you to run through these names very quickly, you know, see the

activity that’s taken place, and seeing when that crossover happened here as

well, and allowing you to combine that with any additional analysis that you’re

doing.

END OF AUDIO FILE