Thu 13 Jul 2006
Continuing my ongoing daily reports on the latest Power Ratings, with the top Power Ratings for 7/14 listed below along with a status report of how all the other PR stocks throughout the week have performed. Please note that today and yesterday were significant down days on the market so I’m not expecting the PR stocks to have performed all that well.Stocks with a PR of 9 on 7/14:
- OPTV (3.42) – 3rd day at 9
- NOIZ (15.30) – newly minted 9, was 8 yesterday
- LSCP (30.80) – newly minted 9, was 8 yesterday
- KKD (7.55) – 2nd day at 9
- JCOM (28.51) – 2nd day at 9
- ILE (3.20) – 4th day at 9
- IDCC (25.71) – back at 9 after a 1 day haitus (it was 8 )
- ENZ (12.70) – back at 9 after a 2 day haitus (it was 8 )
It’s become too cumbersome to report individually on stock performance here, so I uploaded my spreadsheet that I was working on (the first draft got accidentally deleted, so I’m posting this in part to make sure I can retrieve it just in case!). See the Excel file attached for a detailed performance review of the stocks that have appeared on the PowerRatings site with a PR of 9. They have been performing extremely bad all week!
July 14th, 2006 at 8:45 am
So far, the picks look like losers. This could be something transitory due to the downward bias of the general market, but you?d need to collect more data when the downward drift isn?t so pronounced. Likewise, if I were you, I?d try to figure out some way to identify this type of market so you can avoid trades when the power ratings won?t perform well (or you can scale back your positions to minimize the losses).
The strategies I suggested in my Setup vs Entries post could still be valid. You have several potential trades, can you analyze them to identify ways to avoid losers? Obviously you want something tangible that isn?t biased (e.g. only take stocks that begin with vowels), but instead focus on something like the price range in the first hour of trading, waiting for an uptrend, only buying when the rating change is large, etc.
Should you spend $150 – $200 to continue monitoring and play around with variations of how to play the Power Ratings identified stocks? Maybe… if this system really appeals to you, it might be worth the investment of money and time, even if it doesn?t end up being useful. You will likely learn a lot just by going into deeper analysis. It also might be worth looking around at different systems though to see if any fit your preferences/style more since I believe your time and energy is more valuable than the money involved.
July 14th, 2006 at 8:50 am
Oh, a quick note on today’s stocks. LSCP is being acquired by American Medical Systems.
This is the first acquisition target listed for a long stock, which is interesting…