RELATED LINKS -->| JSW Main Page | Tutorial-1 | Tutorial-2 | Tutorial-3 | Tutorial-4 | Videos |
>>>THIS IS TUTORIAL #3 <<<
This section covers new advanced features added into JSW in 2011. All previous documentation and tutorials for JSW covered up till Dec 2010.

1. CONSISTENCY SAFETY FEATURE [FOR INVESTORS]
JSW now tracks consistency of Earnings, Dividends and Revenue growth for all the shares on the JSE. This is highlighted by the CONSISTENCY column as shown below:

JSW considers consistency as at least 5 years (10 reporting periods including finals and interims) of never-decreasing growth. If a share meets these strict criteria it earns an "E", "D" or "R" tag in the CONSISTENCY column for consistent Earnings, Dividends or Revenue respectively. If a share has an "RD" as shown above, it means it has managed to show never-decreasing growth, period-on-period (final-to-final and interim-to-interim) for at least the last 5 years, for BOTH Revenue and Dividends reported.

There is a very strong correlation between this consistency and a share's ability to considerably out-pace the general market from both a capital appreciation and income yield perspective. Earnings growth drives share price, and  consistent dividend growth not only gives you comfort that your dividend yield is safe, it is indicative of strong cash flows. Needless to say, these shares are in very select company indeed and only about 10% of the JSE qualify for these strict criteria.

The exact details behind the nature of these share's consistency is displayed on their TREND chart in the BREADTHVIEWER sheet in JSW as shown below highlighted in red and tagged "1":

We see that CLICKS has posted never-decreasing earnings per share for 5 years, and has grown earnings at a compound annual rate of 25.4% over this period. We also see that there are only 16 shares on the JSE that are part of the exclusive consistent earnings club and in fact CLICKS is ranked 9 out of the 16 in terms of earnings growth. Similarly, CLS has posted never-decreasing dividends for the last 4 years, has grown dividend payouts by 33.6% compound over this period and is ranked 7 out of 29 shares on the JSE in terms of consistent dividend growth.

These growths considerably outpaced inflation over the period and that is why CLS is such a powerful share having increased some 375% over 5 years versus the JSE's 52%. In fact over 5 years CLS has also delivered 3 times the dividends of the ALSH index!


The above example is not an isolated case. Research we are conducting shows a consistent, strong correlation between earnings and dividends consistency and JSE out-performance.

2. MULTI-SELECTOR FOR %PRICES CHANGES [FOR TRADERS + INVESTORS]
The headings highlighted in the below graphic allow you to let the various price change columns behave in a chameleon-like fashion. By changing the heading you change the way the data in the column under it behaves. This allows considerable flexibility given we have a shortage of column space in the JSW watch list sheet:

The example above shows the options revealed to you when clicking on HI. You can change the column to show % change of the share's closing price over the last 10 days (10D), 20 days (20D), 40 days (40D) or 60 days (60D). In addition there are two powerful functions called HI and LOW. HI is the JSW default and shows how much lower the share is trading in % from its 60-day high-point. This is useful to know if you are getting a share at a discount to recent highs or not. Choosing LOW changes the column to reflect how much higher the share is than its recent 60-day low-point.

Clicking on the IMP heading lets you select 5D, 10D and IMP. These multi-function columns are very useful to give you and idea of how a shares' price has behaved over different relative periods. The HI function is used by quite a few of JSW's automated functions, such as GREEN SHOOTS for example, which looks for shares making new 1-week highs but that have fallen at least 3% from recent highs.

3. DIVIDEND PAYOUT ALERTS [FOR INVESTORS AND TRADERS]
The TREND chart in the previous section has a green highlighted area tagged "2" :

LDT:20-JUL-11, PD:10-Aug-11 (2.3%)

This is alerting you that dividends are shortly due for the share and the last date to trade the share inclusive of the dividend is the LDT which is 20 July 2011 and the payment date of the dividends is 10 Aug. The dividend payable equates to 2.3% yield based on the current price. If you buy the share on or before the LDT you qualify for the dividend payment on the PD. If you buy the share after the LDT you DO NOT qualify for the dividend.

This is important to traders as if they go long on the share, they must realise that the share will FALL by approximately 2.3% when it goes ex-dividend (20 July) and they need to cater for this in their stop-loss arrangements to ensure they are not prematurely exited from their trade. Additionally if you are planning to SHORT the share, you will be LIABLE for the dividend!

For investors, this is useful to know when dividends are due to you from your holdings.

If you would like a heads-up of any shares on the JSE that are about to pay dividends shortly, just go to the DIVS sheet in JSW where something similar to the below will be shown. The AMNT is the cents per share dividend that is due on the PAY date.


4. RESULTS ALERTS [FOR INVESTORS AND TRADERS]
The TREND chart also alerts you in the top right-hand corner if the share you are looking at is about to announce results:

To see which shares on the JSE are about to release results, and get more details on the exact dates and type of result, go to the RESULTS DUE sheet in JSW to see something similar to the following:

You can click on the blue hyper-linked names to go through to Sharenet and get more fundamental data. We show you the Market Capitalisation of each share to give you an idea of how much each shares' earnings is going to effect the overall JSE earnings. Typically shares with a large Market Cap will have a bigger impact on the JSE once they announce results.

5. POWER-TRADE SCORES AND MULTI-TOOL [TRADERS+INVESTORS]
The Ranking tool is now a multi-selector where you can choose between RANK and PTRAD to define the nature of the data shown in the columns under it. Hovering you mouse over the little red comment triangle in the heading will reveal the description of use as shown below:

The PTRAD option is now the new default as it is incredibly powerful. It basically shows you how many PowerTRADE BUY signals the share is showing. When looking at a screened or filtered list for example, it is useful to know which shares in the list have the strongest buying signals. If you would like a list of all shares on the JSE showing more than 2 buying signals, just click on the green PowerTRADE function button next to the blue CFD button. To understand more about how PowerTRADE works, go see the short 4-min training video : Download link (12Mb file)
 

6. WATCHLIST VIEWER [TRADERS+INVESTORS]
The picture in the previous section shows a pair of binoculars under the PowerTRADE button. Clicking on this will reveal all the shares in your C:\POWERSTOCKS\JSW_MYSHARES.XLS file that are tagged with a "3". You are advised to tag shares with a "3" that you are interested in as they have some redeeming features, but maybe they are not showing enough buying signals yet. Perhaps you have run various screens and filters and discovered a share or read a news or SENS article about a share that is under correction and you decide it is a nice share to own when it recovers. You add it to your watchlist by clicking on the "3" button on the trading chart of the share and then every day you can click on the binoculars to reveal this list of all shares tagged a "3". You can then merely glance across as the PTRAD column mentioned in the previous section to see if any of the shares are giving healthy BUY signals.

7. ETF LISTING FUNCTION [TRADERS + INVESTORS]
Newbies to the stock market are advised to stick to trading or investing with Exchange Traded Funds (ETF's) as they are less risky and kinder to traders. These are listed shares on the JSE and any broker should give you access to them. You can quickly hide all the ordinary shares from the JSW screen by clicking on the orange parcel in the SECTOR heading. This is a quick way to reveal all the ETF's and ETN's on the JSE. You can then click on the group chart viewing button (red arrow) to flick among their trading charts to look for opportunities.


For more information on ETF's go see www.satrix.co.za or www.etfsa.co.za

8. JSE IMPACT FUNCTIONS [TRADERS + INVESTORS]
This is something we are particularly proud of. These functions tell you which shares had the most impact on the JSE's rise or fall, right down to the EXACT number of points the share added to or subtracted from the overall index. Not only does this tell you which shares had the most direct impact on the JSE's move for the day, but you can actually work out what the effect on the JSE would have been if the share never traded at all!

Quite often you see a huge move up in the JSE and might be tricked into thinking its a very bullish move but when you observe the POSITIVE IMPACT function you realise 1 or two large cap shares were entirely responsible for the advance and in fact most shares declined! This leads you to a very different conclusion!

How it works is we take the weightings of each share on the JSE, as calculated by the FTSE index company that published the FTSE JSE index and multiply that by the % move the share made for the day to arrive at the exact number of points the share added to or subtracted from the FTSE index.

To access these functions you click on the GREEN scales button to get the POSITIVE IMPACT shares and the RED scales button to get the NEGATIVE IMPACT shares. The example below shows what happens when clicking on the green scales button (to the left of the MyShares button). The function description box gets titled GENERALS LEADING THE CHARGE:


In the above example we can see that for the day in question, BTI, which advanced 1.3% had the largest impact on the index by adding 41.9 points to it (found in the IMP for "Impact" column.) It had a large impact as its Market Cap is so large (R604Bn.) The net points advanced by the overall FTSE index is shown under the MktCAP heading in green text as 191 pts (this only displays if IMP is selected in the middle % PRICE CHANGE heading.) If we remove BTI from the days trading, the JSE would only have risen 191-41.9=149.1 points. We can see that the 4 shares shown above added 125.8 points to the JSE - dominating its rise, since without these shares the JSE would only have risen 191-125.8 = 65 points!

9. "LOWER-LOW" TRAILING STOP [TRADERS]
This is a trailing stop for traders wishing to have even shorter-term stops than that provided by the red dotted 5-day Donchian support channel. You toggle it on and off by clicking the round red button with the white cross in it (highlighted  in green circle below.) When toggled on, it reveals a thin black line under the share price as shown below:

The "Lower-Low" stop is actually quite an old tool used by traders and it effectively rises to the point where a share posted a low (i.e. fell in price and then rose in price again) on the premise that that low just posted has redefined the support level found by the share. Should the share fall lower than this most recent low, the idea is the share is in a  decline and its time to get out the trade.

You can see from the above chart that the black "Lower Low" stop and the red dotted 5-day Donchian support level stop follow each other "reasonably" closely, but in general, the Lower Low stop is FAR MORE AGGRESSIVE in getting you out early. As a result, trades based on Lower-Low stops can be (not always but most times) shorter than trades following the Donchian 5-day support (which is the lowest low of the last 5 days - a slightly different concept).

>>> END OF TUTORIAL #3 <<<

RELATED LINKS -->| JSW Main Page | Tutorial-1 | Tutorial-2 | Tutorial-3 | Tutorial-4 | Videos |

 
 
Make a Free Website with Yola.