Sun Tzu's recommended hunting ground
Last week I rebalanced my stock market model and with it the filters that choose stocks for me. Before we go any further, let me point out a few things. (1) these are the results of the filters ran on Friday with data as of the close on Thursday. It can hardly be considered out of date and these stocks should do well for at least the next two months. However, do yourown DD and make sure that nothing has changed since last Thursday. (2) These stocks are volatile, so a major market crash may affect them more adversely than the average stock. I do expect them to recover quickly in a positive environment, though. (3) Nothing replaces good judgement and good trading techniques. So you must be willing to cut your losses short on the issues that move against you and double up on those that show improving prospects with good technical picture. (4) I am invested in a few of these and do trade others. (5) If you don't have the time to check everything out, consider buying the whole basket. These stocks are in diverse industries and that should strengthen your portfolio.
I am presenting these portfolios here, which represent 3 levels of risk and volatility. I have not done any technical analysis on each member beyond what my quantitative research required, so check out their TA. Nor have I gone to great lengths to examine each stock's fundamentals beyond the boundaries of QA, so again check that out. Alternatively, if you don't have the time to do all this research, spread your risk by buying the entire basket and then use good trading techniques to manage your risk.
("low" risk) BSX CCU CMVT CTAS CVC DG DLJ DO ECL ENE FMY GPS GTW HAL HRB JCOR KSU LEH LOW MER MMC NTAP OMC SDS SEBL SLR SNE UNH USAI USF VRTS WCOM WMB WMT
("mid" risk) ADCT ATI AVEI CMVT CTAS CVC FLEX GENZ GPS HBOC HDI KSS LCI LOW LUV MER NTAP NXTL OMC OSSI SCH SEBL SLR SNE TDS TIF TOM TIVX USM VISX VRTS WCOM WMB WMT XO
("high" risk) AOL ATI BGEN CMVT CTAS CVC ENE FRX GE GPS HBOC HPI JCOR KSS LOW NTAP NTLI NXTL OMC SDS SEBL SLR TCGI VRTS WCOM WMB WMT YHOO
The levels of risk (volatility) refer to that of the portfolio and not any one stock within it and it is meant as a relative measure compared to the other two portfolios and *not* to the general market. You may have noticed that some of these stocks have been present in previous STIA portfolios. That you don't see many of the other members of STIA, reflects the changing nature of the market as well as the high level of turn over. Some of these stocks have gone up a lot since Thursday (I may consider a more timely posting of the list if there is enough interest), but that does not mean that they will not go higher. Finally, I know of people on SI who are short some of these stocks. I would seriously reconsider a short position in them if I were you.
good luck to all,
Sun Tzu
P.S Notice the absence of many high flyers in the "risky" portfolio that did not have a profitibility requirement. They just did not make the cut. |
