As of the close today, June 21, 2023, two additional breakout candidates were found in my scan of high volume optionable stocks.
BITO:
and MSOS:
AMC, one of the “meme” stocks in the news.
June 1, 2021 by
There has a lot of news recently regarding so-called “meme’ stocks.
Last Thursday, The Wall Street Journal on B1 stated “Meme Stock Rally Resumes”. The article mentioned GameStop, AMC Entertainment Holdings, and Express Inc.
Meme stocks are those securities that have been discovered by a group of individual investors. The stocks have unusually large short positions, are usually overpriced, and share spikes of rapid growth in a short time period. Actual valuations are not important. The fear of missing out (FOMO) is a large reason to purchase, Volatility increases during times of panic-selling.
One of the most recent mentioned is AMC which recently completed a $230 million capital raise.
The following graphs show the recent price activity of AMC. The last price is as of 12:15 PM on Monday, June 1, 2021.
15 Minutes followed by daily.
Green lines represent times of purchase. Blue lines represent times of closing out positions.
Swingtrader Suite for Day Trading
June 7, 2020 by
Many times I have been asked if the PerfectStorm strategy that works so well for swing trading has any use for the thousands of traders who day trade. Perhaps the following illustrations will be helpful. All graphs are as of the close of business of Friday, June 5, 2020.
The above picture is the daily results of BA versus SPY.
The top is BA, and the next security is SPY. The next line represents the relative strength of BA versus SPY. When the line is going up and GREEN, BA is stronger than SPY. When the line is going down and RED, SPY is stronger than BA.
The Vertical lines represent, when GREEN, that BA should be bought. When the vertical line is BLUE, the trade should be closed. When the vertical line is RED, BA should be short. Many hedge funds, when the trade indicates, will be short the opposite security, that is, when indicated long BA, they will be short SPY and vice versa.
The next picture is of BA versus SPY on a twenty-minute basis. I have left off the vertical signal lines, but a careful analysis will dictate the long/short position.
The next picture is of BA versus SPY on a two-minute chart.
There are thousands of “pairs” that can be traded in the same manner. Just ask Medallion Fund, or Citadel, or World Quant or the many other Quant funds.
I can be reached for further information at rfeit@msn.com or (516) 902-7402
Putting It Together
April 27, 2016 by
For the past ten years or so I have been putting out a blog on my websites: swingtrader.com, relativevalue.com, and perfectstormtradingstrategy.com.
During that time I have proposed looking at the investing/trading world through a different lens, focusing on relative strength combined with absolute momentum.
Since I started my blogs, I noticed others promoting similar strategies.
A book was written a year ago highlighting some of my thoughts and a global advisory established counseling many of the worlds largest money managers, using many of the tools that I had developed.
Most studies of actively managed funds tell us that only four percent of money managers can outperform, on a risk adjusted basis, the Dow or the S&P 500 averages over a ten year period.
I believe that most, if not all of the poor performance is a result of two factors.
One) The inability of the manager to sell positions that are in decline because of the requirements that the manager has to be fully invested. That is, there is no viable alternative, so the manager stays invested, even in losing positions.
Two) The behavioral problem in admitting that you are wrong. The reason for the initial purchase is no longer valid. Not that you were wrong then, but you are wrong now. It has happened to all of us.
My strategy/system remedies both of these problems.
If you are an investor in equities, commodities, foreign exchange, long term, short term, or day trader, if interested in adding significant value to your investing/and or trading portfolio, please contact me at:
rfeit@msn.com