Please don't take offense at my "laggard" comments. I have explained that I feel the system tends to suggest stocks that are less and less extended as the market turns and runs. Those are, by definition, laggards. They didn't breakout when the market turned, they are following the leaders. They take off last, and they crap out first when the market turns negative. Because they are weak, eventhough they have high "merit."
I respect your effort to test the system, but like I've said before, the system has one gapping whole: out of the multitude of candidates, how do you make the final selection? There is lots of room in this critical component, and I think when the system suggests that you overlook a high growth small cap/limited supply stock ("S"), like MIND in favor of some NYSE behemoth just because it has moved two points all year from high to low, you are not going to achieve the results suggested by Ford in the Pitbull hype.
On the flip side, when the market is weak, those stocks that are breaking to new highs, that have a Merit Rank shooting to the moon will provide the most stable, reliable and largest percentage returns while minimizing the chance of getting stopped out.
I am anxious to see your results, I think in the long run, there is much more work to do on the front end of this system.
Go look at ORBKF (remember that one). It was a Pitbull at 22 (just missed by a small fraction on the 2:1 criteria). It was, however, the best candidate I saw that week, and I bought it. I just sold it at 31 (missed the top by about 15 minutes). Do you have any that you've tracked which gave you that type of return?
Check out AFCX. Remember I suggested that it need to correct, eventhough it looked like the best candidate that week. It is now forming a nice handle, and I'm just about ready to buy. 25 would be a great price. Look at the growth, look at the float, the CANSLIM criteria. It's all there. Merit? Probably not better than most of your picks, but I'll take it over most of the screens with astronomical Merit.
I missed QHGI, which I thought the best one week and I posted it. I think the RS stop would have gotten you, but look at it now!! Again, high merit? No, but a nice move.
MIND is yet another. I'll wait for 10 1/4. It is CANSLIM, pure and simple. And, a Pitbull. The best I saw this week.
These are not "high flier", as you suggest. They trade at below market multiples, as did ORBKF before it ran up.
I appreciate your efforts, please don't take offense at my comments. I'm just trying to make a point. |
