Get our favorite long-term stock ideas from our 40+ research analysts with Investing Ideas. Each long or short idea is hand-picked by our CEO Keith McCullough from among our analysts’ highest-conviction fundamental research calls. We provide a detailed weekend update on each name every weekend along with quantitative buy low, sell high levels on each ticker.
The Investing Ideas Levels you receive every Monday are based on a proven signaling algorithm. Here's what you need to know before using them...
Hedgeye CEO Keith McCullough’s quantitative signaling algorithm forecasts the likely future price range of any stock.
Keith has been using (and refining) the algorithm since his days as a hedge fund manager–and it’s now a key component of Investing Ideas:
- Stocks get added or removed based on Keith’s signal.
- Keith’s signal is the source of the “Levels” you receive for each stock on Monday mornings.
What Do the “Levels” Mean for Investors?
The “Levels” you get every Monday are what we call Trend Ranges, looking forward 3 months or more.
As the stock price gets near (or above) the high end of the range, it becomes more likely that the price will go down.
Near (or below) the low end, the stock price is more likely to rise.
A Potentially Costly Mistake to Avoid
All of the Long Ideas in Investing Ideas are stocks we’re bullish on.
Once our signal is no longer bullish, you’ll get an immediate notification that we’re removing the long idea from Investing Ideas.
So, if you already own one of our Longs, you don’t need to sell all shares as soon as the price hits the high end of the range.
Exiting a position before we remove it from Investing Ideas could be a very costly mistake.
That’s because the Trend Ranges may be going up with the price!
In other words, the Trend Ranges are dynamic—and by selling too soon, you could miss out on a big longer-term winner.
How to Use the “Levels” to Buy Low, Sell High
Now that we’ve covered what NOT to do, here’s how Keith and other investing pros often use the “Levels.”
- You can trim your position at the high end of the range.
- You can buy more shares at the low end of the range.
This process may help you:
- Buy more shares at a discount (i.e. "on sale")
- Manage risk when the price goes up.
- Capture the gains from “higher highs” along the way.
BOTTOM LINE: Investing Ideas benefits from Keith's quantitative signaling process and our analysts' fundamental, bottom-up stock research.