Week In Review 7-06-2007
This week illustrates why mechanical trading often trumps putting lots of intellectual labor into choosing stocks. Conventional wisdom suggested that this was a very poor week to trade.
- The July 4th Holiday split the week in half
- Volume during this week is historically tepid
- Market news was infrequent and uninspiring
- A lot of folks took the week off
- The market is way overbought
I was contemplating cashing out and taking a break with everyone else this week. But I stayed fully invested. It wasn't because I had a good idea how things would work out this week. It was because I really have no idea what's going to happen and most other folks don't as well. It is when I start to get cocky and think I've got things figured out that the market sinks me like a 10 foot put.
If I had opted out, I would have passed up my best week in over a year. The portfolio was up 9.43%. My best screen continues to give credence to its name and it blew the others away 13.79% (To the Moon). My worst screen was still decent at 5.82% (Zweig and Zacks #1).
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2 comments:
Holy crap stockpunk - that screen is appropriately titled. Any hints for those of us trying to construct this screen? I was thinking that it has the following elements:
1. high relative strength
2. earnings growth
Any hints? :)
Nice performance ... In one of ur posts u say that u don't have the stomach to bc the strategy is very volatile. Do u know anythin about derivatives? With those u can set up a strategy that always makes money, doesnt matter which way the stock goes, up or down. All it needs is a strategy that picks stocks that make big moves up or down ...
Ur to the moon strategy seems to provide such stocks ... Impressive results though.
A fellow trader
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