As a demonstration of the power of our daily market summaries, below you see a table showing what happened on the trading session of August 10, 2007.  To fully understand how to interpret these tables, go to our presentation page.  In brief, however, the idea is simply to isolate the groupings of stocks, out of more than 1,000 groupings, that performed most strongly and weakly in the previous market session.  Some statistics are given to help ascertain the "flukiness" of the various trends we identify.

Looking below, you see that if you had purchased stocks with particularly low "mov_ave5" values at Thursday's close, you'd have reaped an average gain of 10.4% (annualized gains of 2609%) on Friday!  To be more specific, if you had sorted the Russell 3000 according to this statistic, you'd find that the 120 stocks with the lowest "mov_ave5" values had average gains of better than 10%.  Could these gains have been driven by one or two exceptional performances?  No...the "market focus" statistic tells you that trend was very significant.

 

Date(ymd): 070809 Average Gain: 114.38 Group Stdev: 427.24 Market Focus: 4.6+2.8 (0.00000, 0.00000) Market Focus5: 3.1+2.0

Top Gaining Groups 2609.82 move_ave5 -0.31 to -0.09 (1) 2107.89 gain2 -45.18 to -5.17 (1) 2105.09 mov_ave20 -0.50 to -0.21 (1) 1992.65 momentum -99.82 to -61.12 (1) 1952.97 vtotal -43.03 to -23.75 (1) 1950.15 gain1 -30.23 to -8.25 (1) 1825.13 momentum -61.12 to -48.73 (2) 1797.24 vave -41.18 to -22.24 (1) 1750.16 move_ave5 -0.09 to -0.07 (2) 1721.13 high_moment -0.88 to -0.19 (1)

Losing Groups -1506.87 momentum 128.39 to 462.88 (25) -1496.39 mov_ave20 0.13 to 0.43 (25) -1361.06 move_ave5 0.10 to 0.40 (25) -1353.82 high_moment 0.18 to 0.49 (25) -1182.06 pair_dif20 19.72 to 68.49 (25) -1152.38 1monthgain 17.53 to 73.55 (25) -1127.26 vtotal 26.33 to 39.51 (25) -1123.57 move_ave5 0.07 to 0.08 (23) -1110.78 move_ave5 0.08 to 0.10 (24) -1105.36 vave 26.23 to 39.14 (25)

If you look at the Dow on August 10, you'd actually see a .2% loss on August 10.  Yet our data shows a gain of about .45% (114%, annualized).  Is this an error?  No...weighted indices like the Dow or Nasdaq often present a very biased picture of what's happening in the U.S. market.

Below, you'll see a table summarizing the activity on July 18, 2007.

 

Date(ymd): 070717 Average Gain: -89.65 Group Stdev: 41.70 Market Focus: 4.0+1.6 (0.00000, 0.00000) Market Focus5: -0.1+0.5 Similar Markets: 900920(30), 901009(26), 070330(26), 050920(25), 001213(25)

Top Gaining Groups 182.97 industry 1.00 to 15.75 (1) 73.33 prd_lastyear -13.70 to -2.94 (1) 45.27 pair_dif 1.51 to 5.92 (10) 33.85 industry 15.75 to 28.53 (2) 11.61 resist1 0.17 to 0.26 (8) 6.62 pkurt 2.69 to 2.96 (1) 3.74 mov_ave20 0.05 to 0.28 (10) 3.61 prd_3yrs -1.00 to 0.95 (2) 0.33 open-yclose 0.70 to 19.85 (10) -5.48 gain1 1.47 to 17.98 (10)

Losing Groups -261.60 resist1 -0.77 to -0.14 (1) -228.16 mov_ave20 -0.55 to -0.04 (1) -222.08 1monthgain -60.63 to -9.53 (1) -217.98 resist3 -0.78 to -0.16 (1) -216.81 yeargain -88.46 to -17.81 (1) -216.15 pair_dif20 -143.39 to -15.57 (1) -213.83 BookValue/Pric 0.72 to 3.90 (10) -209.30 industry 88.95 to 92.72 (9) -207.16 PE_ratio -11794.59 to 12.58 (1) -205.19 industry 82.34 to 88.95 (8)

Here, you see that the action was dominated by industries, not by stocks with a particular moving average, volatility, price range (etc.).  In particular, oil stocks fared well.  Another difference between the two tables is the fact that we "sliced" the first table's data 25 times, and the second table's data 10 times.  Following each trading session, we offer both types of tables.  In our "10 slice" tables, we offer another interesting feature:  "similar markets".  Here, we let our computer sort through almost 4,000 historical trading sessions to find the ones that best match the current session.

While most media outlets focused on the gains and losses in various industry sectors on August 10, our service told our subscribers exactly where the action was.

For those who find these numerical summaries perplexing...no problem.  We usually write up a brief, easy-to-read summary of the day's action in our "Market Trends Diary".

Let's be clear:  regardless of your investment time frame, if you're not subscribing to our service, you're probably getting a very limited picture of the market environment.

    Copyright © 2007 Stockwarrants.com. All rights reserved.