Annountcing STIA3 or "How to make MONEY". Here is the link to the new and improved Sun Tzu Industrial Average techstocks.com for those who are not an SI member, you can see it at techstocks.com but I don't think it lets you see the daily performance or the weightings. In any event, that is not a big deal as it is mostly an equal weighted index of 30 stocks (like the Dow). The idea here is that you can short the DJIA, and forward those funds into STIA and make a lot of money out of nothing regardless of the market's direction (kinda). Alternatively you can just buy the stocks in STIA (or whatever of them that you like) and sell delta weighted calls on DJIA to take the market risk out of the equation. Or just buy them and enjoy the ride. In any event, STIA has been performing a lot better than the Dow with a lot less volatility (which is very important). On the down days it typically falls less than DJIA and on the up days it outperforms DJIA. For example, today it was up 208 points compared to DJIA's 84 points. I see a lot of people paying a lot of money for news letters and stock selections which is not even half as good as what you get in STIA.
For the purposes of future comparison, at the close on Friday, DJIA was at 9120, S&P500 was 1225, and STIA3 was 10,016 (I've dropped the fractions).
How do I choose these stocks. Well, I have a databases of over 6000 stocks. Over the years, I've developed myown indicators which are a weighted set of numbers of various fundamental and technical factors. Every week, I run my programs to extract the most promising stocks from the database. I then narrow this list down based on my personal evaluation of the stocks. Of course, there are times when I choose not to be in the market at all or even go short. My method, I shudder to say (given her track record), is similar in principle to Elain Garzzeli's (sp?) method. Only mine works <G>. Also, I don't do any of the things that I usually do with my portfolios. For example, I don't drop the stocks from the list until I'm ready to publish the next list. Even though it may be clear to me that certain members are going to go much lower. I also keep the invested amount roughly equal, even though in my personal portfolio I drop the losers and add their money to the winners. So for example, I would have sold AKLM while it was still 20% up and gotten rid of DSLGF before it became the kind of disaster that it was and would have added the money to PSIX, SAVLY, and ANF.
Two thirds of STIA has been replaced in this revision. The best performers on the list are:
PSIX up 85% since Nov 21
ORCL up 47% since Nov 21
RATL up 28% since Nov 21
Over all the index has out performed the Dow by 11.6% since Nov 21.
Good luck,
Sun Tzu
BTW, I've been debating if I should publish my selected stocks on a weekly or bi-weekly basis. If you are interested, send me an email to suntsu7@hotmail.com and if there is enough demand *and* if I decide that I have enough time to under-take the task. I will make a mailing list and email you the resulting screens. |
