David Sylvain

Posts Tagged 'hazelboutique'

Stock Market Analysis: 02/23/10

I have experimented with many other ways to quantify and find neglect and use 2-3 other ways to define neglect. Expanding from the theme of ‘Virgin’ , I have over the years experimented with various ways of finding neglected the boutique s. ETFs have more moving parts than a single stock, he explained. If funds are also short an ETF, these usually have a much lower beta (they move more in step with the market). If a hedge-fund manager wants to short a couple of hard-to-borrow biotech stocks, for example, the manager could more easily bet against an ETF covering that industry. DryShips Inc. ( DRYS ) – DRYS broke out to the upside on Friday stopping short of the $7.62 low from May 8th. $7.62 is a resistance level to watch going forward. SIRIUS XM Radio Inc. (SIRI) – Shares of SIRIUS XM Radio pulled back slightly on Friday. Sirius XM Radio (SIRI) – Shares of Sirius XM Radio traded flat on Wendesday. Vertex Pharmaceuticals Incorporated (VRTX) – Vertex Pharmaceuticals Incorporated (Nasdaq:VRTX) was flat Thursday but recently announced positive drug data.

 

I look at the ratio of less than 25% positive days as the ideal ‘Neglect’ candidates. Earnings momentum based strategies look for momentum. After experimenting with various time frames, I look at 4 years negative to positive days ratio. So the software basically finds out for all stocks number of positive days to negative days ratio for 4 years and ranks the stock. This eased-out opportunity to invest has built people’s interest in stock trading. If you’re interested in participating in the pre-market trading session, check with your brokerage to find out when you can trade. So if you want to find and trade stocks likely to make significant moves early in their price appreciation cycle you must find various ways of quantifying neglect. One of the things I have found after studying stocks which make 100% plus move in a year over years is that prior to their move they are essentially neglected.

 

ETFs are also indexes, and so, by definition, they provide so-called beta — that is, the return generated by the market. That could end up looking more like beta than alpha. I like shares in the $40’s for the long term. The entire area of neglect is conceptually based on contrary thinking or long term mean reversion or value focus. As I have said many times before previous neglect is very good for future returns. Under a right kind of circumstances growth and momentum stocks offer very good risk reward for buying breakouts. Yoga teachers still offer sensible solutions for those who experience pain. Out of the many anomalies I have studied and tested, I have based my trading on few key concepts with statistically proven edge. Studies after studies have shown some concepts in the stock market have an edge over the random walk hypothesis. In a market where you have choice of 8000 plus stock vehicles, your vehicle selection determines your returns. 3 One day 4% plus breakout. The IBD 200 uses earnings and relative strength plus some other fundamentals to narrow the universe to 200 high probability vehicles.

 

The ‘Double Trouble’ uses absolute price growth to identify vehicles likely to go up. The basic concept behind most of the stuff I am talking about be it IBD200 or Double trouble or Episodic Pivot or Virgins is Vehicle Selection. If you chose a Bugatti Veyron as your vehicle as against say a Ford Mustang in a race, no matter how bad a driver you are your probability of winning race is high. So what is your vehicle selection strategy? The rise could be due to the fact that Green Plains Renewable Energy, Inc. (GPRE) reported better then expected earnings. Small Cap Bull 3x (TNA) – TNA rallied 15% from the lows this week but then pulled back. Shares of Research in Motion Ltd pulled back on Tuesday. Sequenom Inc. (SQNM) – Shares of Sequenom Inc. took off yet again Tuesday after an upgrade. Ambac Financial Group, Inc. (ABK) – ABK is holding strong near $1.00. The Earnings Breakout and Earning Surprise strategies I trade are based on this phenomenon. At the heart of earnings strategies are concept like PEAD Post Earning Announcement Drift, earning momentum, and earnings overreactions. A free example would be something like the MSN screener.