After taking a week off, the Power Dip system has found Thursday’s weakness to its liking and is ready to take the following long signals on Monday’s open.
As usual, a 10% stop works well.
[[LIFE]]
DENTSPLY International Inc. [[XRAY]]
99 Cents Only Stores [[NDN]]
Waters Corporation [[WAT]]
XRAY is my favorite out of the 4 of those.
Loving the picks out of this system Wood, keep this shit coming!
Some good looking picks and last I looked 3 of 4 of them were up which is pretty good considering where the market is today.
Thanks guys. This system is not the easiest to trade since it requires a contrarian approach. Once that hurdle is overcome, it is pretty fun to see it all coming together.
And in days like today, it is the hardest to be contrarian. You have to overcome your instinctual Caveman fear which is not easy.
Woody,
i have asked it in earlier thread , do you think if there is any merit in applying power dip strategy to ibd100 or ibd200 list. That will make sure we are targetting best of the breed.
thanks
Bill, because the strategy is applied to all stocks, it is automatically applied to the IBD 100 list.
The strategy seeks best of breed, in technical terms.
It does not at all consider fundamentals, and that is where it differs from the IBD list.
As the strategy generates positive expectancy, the more opportunity, the greater the profits. We don’t want to limit it to just 100 or 200 stocks.
You may want to test on low-priced stocks only, or on the universe not including them, since my tests often show most of the benefit of many strategies centers on low-liquidity stocks; indeed, some strategies cease to work when low-liquidity stocks are excluded in the backtest. I’m not saying this applies to you but low rsi(2) tests at stockfetcher do tend to show this effect.
Musselman, this strategy will take any stock over 1 buck with at least 300K 10 day average volume.
I have tested it eliminating stocks under 5 bucks, and it hurts performance a tad. Most of the time it does not pick up the lower priced stocks, but eliminating these would severely limited the performance over the last 3 months when small caps were rocketing.
During other times, small cappers have hurt performance. As the market waxes and wanes, money moves in and out of large and small caps, and I haven’t found a great way to adapt the system to these flows in real time.
Certainly, when there are more signals than space in the portfolio, the individual trader can select stocks based on market cap, if they choose.
Wood, do you know they used silver crosses in romania to kill vampires. Silver cross, not golden cross, dig? ROFLMAOPIMP.
Good stuff Lambo.
Lambo, you’re in Richmond area? Me too.
Oh now I am the bad guy – how can you explain that golden cross turned to be a statistical anomaly, but on the opposite side of a buy? In fact after looking at the data and numbers from you there’s a very high probability a golden cross throughout its history is pretty darn close to say nothing about bullish / bearishness. Thanks for telling me where I live.
Lambo, breathe dude. You are not making ANY sense. I write, “Good stuff Lambo” (as I enjoyed your humor) and then you write back, “Oh now I am the bad guy.” Hmmm…could have been lost in the electronic medium, I suppose.
But then, you completely lose me.
For example, “how can you explain that golden cross turned to be a statistical anomaly, but on the opposite side of a buy?” lmao, that makes no sense.
Then we have this: “In fact after looking at the data and numbers from you there’s a very high probability a golden cross throughout its history is pretty darn close to say nothing about bullish / bearishness.” Huh? What?
Dude, are you one of Denninger’s minions? If so, that would make sense BECAUSE THE ZOMBIES HAVE EATEN YOUR BRAINS.
Look, I will pick apart your arguments like an Osprey on some fresh fish. I will, however, not respond to assertions and questions that have been answered ad nauseum in the Golden Cross posts. By the way, those posts have not been deleted.