An Explanation of the HHI Index

The HHI Index is a list of stock ratings derived from a proprietary computer model and are being shared as a public service with no guarantee of or responsibility for trading success. Readers are strongly encouraged to do their own research and to exercise caution in all trading activity.

In general, the HHI Index is published three times a week: Sunday night, Tuesday night and Thursday night. Each HHI Index covers the next day's market. Please note that at times I get busy with life and travel and I am unable to publish the HHI Index. Occasionally, I go days or even a week or two without publishing the HHI Index.

Each day, a daily Bible reflection is published along side the HHI Index. You are encouraged to meditate on the Bible reflection, but it is, of course, up to you.

The HHI Index is a scale extending from -7 to +7. -7 represents a very strong sell and +7 represents a very strong buy. In practice, I have only enough time to report the stocks at +4 and above, and a few speculative candidates at +3.

The / mark reflects relative strength. Stocks on the left of the / in each row are considered capable of 50% or higher short-term growth. Stocks on the right show less relative strength, and are considered less likely to have 50% short-term growth.

The HHI system advocates diversification into at least five issues, and stocks to the right of the slash marks (/) are generally avoided as having relative strength that is too low. New purchases are made only of issues rated "+5 buy" or above, and stocks dropping off the list by dropping below "+4 hold" are usually sold.

Symbols that are followed by (+) are those individual companies with highly favorable rolling earnings per share data; however, this cannot apply to funds and baskets of stocks that are also in the list and may represent equally good investments.

Most importantly, remember to always do your own research and not rely blindly on recommendations from any source.

_{The HHI Index is a list of stock ratings derived from a proprietary computer model and are being shared as a public service with no guarantee of or responsibility for trading success. Readers are strongly encouraged to do their own research and to exercise caution in all trading activity.}

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