Data Mining: http://online.wsj.com/article/SB124967937642715417.html Survivorship Bias: http://en.wikipedia.org/wiki/Survivorship_bias More Information: http://www.amazon.com/Fooled-Randomness-Hidden-Chance-Markets/dp/1587990717
wrong track, my friend. the testing was objective and since 1995--no data mining or surviorship bias came into play---- surf
You have chosen rules which performed well on historical data. This is the text book definition of data mining.
How are the stocks performing over the next week? That should answer the question if this analysis is bull shit or not
http://www.tradingmarkets.com/.site...7-Stocks-You-Need-to-Know-for-Wedne-81926.cfm Positive data from the inventory and productivity arenas was not enough to stem the heavy selling today. The extreme bearish sentiment was triggered by JP Morgan downgrading critical bond insurer, MBIA, while slashing deeper by stating there is very little value in the company. The DJIA lost 96.50, the Nasdaq gave back 22.51 and the broad based S&P 500 dropped 12.75 suffering the steepest decline in a month. Here are 7 stocks you need to know for Wednesday. Retailing monster Macy's (M | Quote | Chart | News | PowerRating) is expecting to see fiscal second quarter 2010 earnings of 17 cents/share before the open on Wednesday. Bra maker, Maidenform Brands (MFB | Quote | Chart | News | PowerRating), has suggested an EPS of 25 cents for the second quarter on Wednesday prior to the bell. Progressive (PGR | Quote | Chart | News | Power http://www.tradingmarkets.com/.site...7-Stocks-You-Need-to-Know-for-Wedne-81926.cfm
Here are 5 stocks trading above their 200 day SMAâs, indicating a strong uptrend, an RSI(2) below 1, and a Short Term Power Rating reading above 8 for short term traders now: Protalix Biotherapeutics PLX: RSI (2) .59, Power rating 10 Tesco Corp. TESO: RSI (2) .91, Power Rating 9 Skyworks Solutions SWKS: RSI (2) .33, Power Rating 8 Immunogen Inc. IMGN: RSI (2) .23, Power Rating 9 Novellus Systems NVLS: RSI (2) .16, Power Rating 8
http://www.tradingmarkets.com/.site...FOMC-Meeting-and-5-Real-Edge-Stocks-81930.cfm All eyes are on the Fed today. The market may drift listlessly in anticipation of the FOMC statement at 2:15 PM EST. While they are unlikely to make direct interest rate changes at this time, further quantitative easing measures, to give another kick in the butt to the economy, may be on their way. Traders worldwide will be fixed to the financial news networks closely monitoring changes in the Fed sentiment or rhetoric signaling major stock market moving potential. The major indexes have fallen steeply during the first 2 days of the week, although they are still trading above their 200-day simple moving average, indicating that the uptrend remains solidly in place. Although no one knows what the future holds in these uncertain times, there are strategies that savvy short-term stock traders can utilize to place the odds firmly in their favor over the next week's time frame. This article will discuss an indicator that has come as close to being a Holy Grail stock picking tool that we have ever proven effective via extensive testing. In fact, our testing on this tool with true edge goes back to 1995 covering over 8 million trades. This piece will also share 5 stocks that fit the criteria for you to add to your watch list today! The indicator is the 2-period Relative Strength Index, RSI(2). Originally developed by technical trading pioneer, Welles Wilder, using a 14 -period time frame, measures the magnitude of a stock's recent gains to the magnitude of the its recent loses. While our testing clearly indicates that no edge exists with the original formula, tweaking the time frame to 2 has proven to have statistically significant edge. The average returns of stocks with an RSI(2) below 1 strongly outperformed the benchmark over 1, 2 days and 1 week later. Here are 5 stocks trading above their 200-day ma's, indicating a strong uptrend, an RSI(2) below 1, and a Short Term PowerRating reading above 8 for short-term traders now: Protalix Biotherapeutics (PLX: | Quote | Chart | News | PowerRating) Short Term PowerRating 10. RSI(2) 0.59 Tesco Corp. (TESO | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2) 0.91 Skyworks Solutions (SWKS | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2) 0.33 Immunogen Inc. (IMGN | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2) 0.23 Novellus Systems (NVLS | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2) 0.
http://www.tradingmarkets.com/.site...Pain-No-Gain-5-Stocks-For-This-Week-81966.cfm The final trading day of last week brought the pain to the stock market bulls. Although stocks rallied hard off their lows by the end of the day, Friday's session stabbed more than a few happy go lucky bulls in the heart. As we anticipate this week, with the futures selling off hard, it's important to keep in mind that markets never go straight up. They always move in a series of thrusts and counter thrusts as bulls and bears battle for dominance. It is these very swings that traders use to profit. In the trading game, often doing what feels correct or good is actually the worse thing you can do. While every trade entry has an uncertain outcome, our extensive testing, since 1995, has proven that there are certain occurrences that increase the odds for success in the short term by a statistically relevant factor. These are not feel good and are counter intuitive and actually painful entries for many traders, but they have been shown again and again to provide an edge within the one week and less time frame. This week's example of a proven winning stock choosing method is the 5-day 10% drop buy trigger. The criteria is first to locate stocks trading above their 200-day simple moving averages. Second, drill down deeper, locating companies that have fallen 10% of more over the last 5 days, yet are still above the 200-day SMA. Lastly, take a look at the Short Term PowerRatings, only focusing on stocks earning an 8 rating or above. Meeting these factors have proven to show positive returns, on average, one day, two days and one week later. Here are 5 stocks for your watch list meeting the above criteria: Garmin (GRMN | Quote | Chart | News | PowerRating) Short Term PowerRating 10. Federal Mogul (FDML | Quote | Chart | News | PowerRating) Short Term PowerRating 10. Coinstar (CSTR | Quote | Chart http://www.tradingmarkets.com/.site...Pain-No-Gain-5-Stocks-For-This-Week-81966.cfm