To add to the discussion on this thread as to the effectiveness of MF as an indicator, I took a look at how the stocks Laszlo Birinyi selected in Barron's on Feb. 23 (two weeks ago). His indications were positive (stock going higher) on: IBM, MOT, BMY, OAT, CPQ, XON and K.
He was negative on: PEP, NKE, CA, and MTC. I figured that this was based on data taken in early February and looked at the price at that time versus the price today. I read this off the Barron's charts-so I had to eyeball the numbers and I took the percentages in my head. So I could be a little off. That said, this is what I found for the buys:
IBM flat, MOT -10%, BMY +5%, OAT +7%, CPQ -2%, XON -5%, K -2%.
For the sells:
PEP -8%, CA -15%, MTC flat, NKE +8%.
Now, I surely don't know if enough time has elapsed or what kind of move one would look for using MF on these stocks. Some of these stocks have dithered and exhibited tradeable moves in either direction.
It looks like the sells have been slightly better picks to date. Again, I didn't do this very scientifically-just something to play around with.
Lyle |
