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Strategies & Market Trends : January Effect 2007
IWM 247.30+0.9%Nov 26 4:00 PM EST

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To: RockyBalboa who wrote (1)12/18/2006 2:51:39 PM
From: Q.  Read Replies (1) of 94
 
here's a post of mine from 2001 with my screening criteria:

Message 15298045

A low 3-week RS would probably be a helpful criterion to include in a screen, judging from the charts for your most successful stocks this year, Infostream.

I think next year I would screen on these criteria:

most important:
- stock price in desired range (mostly < $1)
- low RS: 12-mo, 6-mo, 3-mo, and especially lowest 3-week
- 30-day average dollar volume >> $50k

important:
- high individual ownership
- ratio (volume in next-to-last day of year or the day before that / 30-day average volume) > 1.2

less important:
- value criteria (price/cash, cashflow, etc.)

Finally, screen by hand to avoid stocks with recent bad news and large single-day price declines, and to favor stocks with charts that have been going down continuously.

===============

I think that in subsequent years I found that the price range 0.4 - 2.0 in December was about right, and in one year in particular it was best to be at the high end of that range to avoid terribly POS companies
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