We’re big believers in the 80-20 rule: History has shown us that the vast majority of returns in any market come from a relatively small number of stocks. Our number crunching reveals that a carefully chosen group of stocks across the highest ranked industry groups is going to capture a very large percentage of the market’s performance and at a lower overall risk.

Additionally history shows us time and again that typically a small number of groups drive overall market returns during a given cycle of them are driving the market at any given time. Merely holding stocks across dozens of sectors – many of which are under-performing – offers much less protection in reality than in academic diversification theory.

FusionIQ™ makes it easier for you to choose that portfolio of 15-20 stocks in the right sectors by using our quantitative analytical tools.

1. Quantitative Stock Rank: Use the FusionIQ™ Ranking system to objectively identify and review stocks. Select highly ranked stocks for your portfolio; eliminate poorly ranked stocks from your holdings before they possibly become big money losers.

The FusionIQ™ stock rank system is an ideal tool screening as well as risk management tool for both investors and fund managers alike.

2. Earnings Surprises: The FusionIQ™ system follows the Fundamental analyst community, quantitatively ranking analysts based on two criteria: We rank those analysts with the best record of forecasting earnings, as well as those who have made the most timely buy and sell calls. The likelihood of and earnings surprise occurs when a FusionIQ™ top ranked analyst or analysts, (by top ranked we mean analyst(s) that have proven to be more accurate than their peers over the last 8 qrts.) is an outlier To qualify as an outlier their earnings estimates tend to be more bullish (or bearish) relative to their peer groups earnings estimates. Historically based on testing, this analyst assessment algorithm has generated a ~70% accuracy rate in forecasting positive and negative earnings surprises.

Ideal for fund managers and active traders

3. Short-term Timing Signals: Starting with highly ranked stocks, we apply our beta-adjusted algorithm (above average directional volatility moves) to identify unusual short-term strength. These are then filtered against an adjusted moving average envelope band along with the simultaneous readings on several confirmed momentum indicators to gauge the likelihood of a new trend developing. These buy and sell signals are best suited for those traders whose holding periods are typically 1 week to 1 month, though these signals can also be effective for longer periods of time depending on the durability of the underlying price trend. The same approach is used to generate ST Trading Sell Signals.

Ideally suited for active traders.

4. Short Squeeze List: Starting with the officially reported Short Interest, we then adjust this short interest number as to what % of the outstanding float is short. We then cross reference this against our master technical score to look for stocks exhibiting price strength that would makes shorts nervous enough to cover. The final step of the short squeeze process is to screen these stocks for abnormally high trading volume, and upside price movement to effectively determine a squeeze is likely taking place.

What we end up with is a list of highly shorted stocks, held by nervous traders: Can anyone say Squeeze!

This list is of particular interest to Short-Only and Long/Short Funds, as well as active traders or anyone looking to generate alpha.

5. Power Gaps: Highly ranked stocks based on FusionIQ Master Technical Score (i.e., ranked 70 or >) that have gapped open on at least >3+% and have traded above average volume relative to its 21 day average. These are stocks that have also managed to stay above that opening gap price.

These are stocks that have the potential for explosive price movements. Great for Investors and Active Traders.