SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Buying SPLITs and other Strategies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Terry Whitman who wrote (856)6/20/2006 9:30:05 AM
From: rolatzi  Read Replies (2) of 1163
 
I haven't separated out the bull and bear market for split strategies. It is said that 70% of a stock's performance follows the market, so it is not surprising. The next question arises as to how do you determine whether there is a bull or bear market. Maybe require an MACD or stochastic cross over as an additional buy signal. Any ideas on that one?

It is useful that splits of 2:1 or greater outperform less splits. I don't think I found a noticeable difference on the data I looked at. Since there are more than enough splits to be found, it is easy to restrict ones trades to 2:1 or greater. The best performance for splits I found was buying on the day of the announcement and selling on the day of the split. It was a total of about 30 days. I don't have the data in front of me as I am on the road without my usual computer in front of me.

For expiration Friday, I sold QQQQ's near the close on Thursday and I intend on covering sometime today. Since I only examined closing prices my system calls for covering at the close today, Tuesday. However, if the market goes down a lot this morning, I would be inclined to cover earlier. I haven't looked at intraday data. It is more than I can get or handle. I have looked at how the market performs during the week of expiration Friday and the performance can be improved if you pay attention to those days. We're not talking about large profits here but since it's a 3 day trade on an annual basis it is not bad. I don't know if I am over analyzing the system, however. Also, there is a seasonal aspect to these trades, which also may be a result of over determination. It remains to be seen if the pattern holds up.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News