Maybe the filter is working. We are in a Depression at this point in time. You may notice that each criteria element is adjustable For trading PVT, the criteria are adjusted to have a set of stocks that will perform to make money. Lets say that we look at how money making works. Make a list of what goes into having reliable stocks for making money. William J. O'Neill outlines a lot of considerations. Previously we discussed the "Red" - "Green" problem and not being able to "see" it on the lists. This was a complex issue and it involved how quality stocks still cycle. If you can consider fast price moving stocks, then maybe we can ignore Sentiment and be able to look at quality stocks in the long or short portions of their respective cycle parts. Drop the sentiment and see if you can consider cycles in quality stocks. Relative Strength is well defined by O'Neill in a verbal manner. Here you cannot examine RS since the formula is proprietary. But you can learn how the formula works by doing some science. And it adds a "degree of freedom" to your criteria. Chucking it could be said to not work as well and you lose a degree of freedom. The goal is to have a list and know that the criteria well defines the climate of the current market. The two adjustments that work most powerfully are the two at the top of the list. The least important is the institutional holdings.
hi Chuck, For the first criteria there were 802 and for the remaining criteria there were 0. Right now we are going through how to create Universes by adjusting the criteria for a Universe during various overall market, economic and econometric conditions. The goal is to have a very high Sharpe Ratio. This will result in making a high money velocity.
Certainly. All the stocks are above Dry Up except for the highlighted stock. This stock could become a Buy if it follows the rules on the one pager entitled "Unusual Volume". When, during the first part of the morning, it breaks through the specified volume ( 0.25*(65day moving avg)), then you have 1 1/2 hours before price "lift off". This can be seen by the color change on the FRV column. All the other stocks have to come to DU and, then, they can be considered for Buying once the FRV is occuring. Perhaps the Universe will grow to the usual size and then more trading will begin to occur.
My first reaction was: WHAT!!!???? Why the heck did I then do the IAS!?? But upon further reflection I think what you are saying is: If I had more stocks in my list that are in DU only THEN all the ranking through the IAS becomes important/interesting because only then one needs to decide in which of the many stocks that are in DU does it make sense to put some money. Correct?
Thanks Paddler, but that doesn't seem to change anything. The Genesis RS criteria seems to work differently than the one from IBD or stocktables. It can not be used as a useful filter.