This post has been written following Trader Narrative’s great post about the financial stock leadership.
It may sound a bit harsh but I believe the definition of market status should not influence the average trader. The average trader doesn’t buy the market, he buys stocks which can perform quite differently from the market.
Lets take as an example SATC which is currently in my portfolio. I bought SATC four weeks ago and the stock has gained 68% since. At the same time the NASDAQ barley made 2.9%.
Other example of a signal that was profitable in 2007 is SQNM with 71%. The stock was bought in late August 2007 and was held up to February 2008.
The point I’m trying to make is the market will always have good bargains for a trader who knows where to look no matter whether the pundits consider it bearish or bullish.
The table below shows a simulation on the NASDAQ since the beginning of 2007
| Symbol | Entry Date | Entry Price | Exit Date | Exit Price | % Change | MAE % | MFE % |
| SPPR | 03/01/2007 | 6.35 | 09/07/2007 | 7.82 | 23.25 | -4.18 | 26.22 |
| FCTR | 03/01/2007 | 23.46 | 26/02/2007 | 23.96 | 2.14 | -4.87 | 2.34 |
| DSCM | 03/01/2007 | 3.66 | 08/01/2007 | 3.29 | -10 | -10 | 0 |
| IMMR | 08/01/2007 | 6.94 | 16/07/2007 | 19.3 | 178.1 | -3.31 | 197.98 |
| ECGI | 08/01/2007 | 2.55 | 16/07/2007 | 3.27 | 28.24 | -1.96 | 59.61 |
| IIJI | 08/01/2007 | 8.74 | 09/04/2007 | 9.79 | 12.01 | -4.69 | 18.76 |
| CSLR | 08/01/2007 | 5.2 | 26/02/2007 | 5.49 | 5.58 | -20.58 | 26.35 |
| RELL | 08/01/2007 | 8.74 | 26/02/2007 | 9.08 | 3.92 | -6.69 | 10.87 |
| SABA | 08/01/2007 | 6.84 | 12/03/2007 | 6.16 | -10 | -10 | 13.3 |
| CHUX | 16/01/2007 | 21.24 | 26/02/2007 | 21.49 | 1.16 | -7.6 | 4.77 |
| CKSW | 26/03/2007 | 3.42 | 01/10/2007 | 5.5 | 60.82 | -17.84 | 97.66 |
| ALSK | 26/03/2007 | 14.11 | 09/07/2007 | 15.04 | 6.57 | -3.82 | 14.47 |
| HOLL | 26/03/2007 | 4.38 | 07/05/2007 | 4.53 | 3.42 | -5.48 | 8.45 |
| QADI | 26/03/2007 | 9.1 | 14/05/2007 | 8.69 | -4.55 | -15.37 | 10.5 |
| CNST | 26/03/2007 | 9.96 | 26/03/2007 | 8.96 | -10 | -13.76 | 0 |
| PESI | 02/04/2007 | 2.31 | 06/08/2007 | 2.8 | 21.21 | -7.79 | 47.19 |
| PCTI | 16/04/2007 | 9.99 | 29/05/2007 | 9.2 | -7.92 | -10.27 | 3.39 |
| XOMA | 21/05/2007 | 3.3 | 09/07/2007 | 3.13 | -5.15 | -12.42 | 6.97 |
| RADS | 29/05/2007 | 13.16 | 03/12/2007 | 15.77 | 19.83 | -6.46 | 39.29 |
| ALTI | 04/06/2007 | 3.19 | 13/08/2007 | 3.35 | 5.02 | -12.23 | 28.21 |
| CALD | 16/07/2007 | 8.92 | 17/09/2007 | 8.44 | -5.38 | -8.74 | 13.34 |
| STBA | 23/07/2007 | 32.12 | 24/09/2007 | 33.17 | 3.27 | -9.95 | 10.25 |
| ASYT | 23/07/2007 | 7.4 | 30/07/2007 | 6.66 | -10 | -10 | 0 |
| IMGN | 23/07/2007 | 5.63 | 23/07/2007 | 5.07 | -10 | -21.85 | 0 |
| CEVA | 23/07/2007 | 9.02 | 06/08/2007 | 8.12 | -10 | -10 | 0.22 |
| ACTU | 13/08/2007 | 6.34 | 31/12/2007 | 7.94 | 25.24 | -8.68 | 41.8 |
| SQNM | 27/08/2007 | 4.81 | 19/02/2008 | 8.26 | 71.73 | -1.25 | 141.79 |
| ARTG | 27/08/2007 | 3.1 | 14/01/2008 | 3.96 | 27.74 | -11.61 | 56.13 |
| BABY | 27/08/2007 | 16.83 | 10/09/2007 | 15.15 | -10 | -10 | 0 |
| CHKP | 04/09/2007 | 23.31 | 05/11/2007 | 24.51 | 5.15 | -4.8 | 14.93 |
| PCOP | 17/09/2007 | 5.68 | 29/10/2007 | 5.73 | 0.88 | -10.92 | 7.39 |
| INTV | 24/09/2007 | 9.41 | 10/12/2007 | 9.05 | -3.83 | -11.9 | 17.22 |
| CYTX | 01/10/2007 | 6.05 | 12/11/2007 | 5.45 | -10 | -10 | 7.44 |
| SNWL | 08/10/2007 | 9.53 | 07/01/2008 | 9.85 | 3.36 | -8.81 | 20.99 |
| DYII | 05/11/2007 | 6.13 | 12/11/2007 | 5.57 | -9.12 | -9.12 | 7.5 |
| CTGX | 19/11/2007 | 4.72 | 14/01/2008 | 4.36 | -7.52 | -7.52 | 28.18 |
| IDEV | 19/11/2007 | 7.33 | 31/12/2007 | 6.65 | -9.26 | -9.26 | 5.05 |
| TQNT | 26/11/2007 | 5.86 | 07/01/2008 | 5.27 | -10 | -10 | 20.82 |
| RCCC | 24/12/2007 | 44.35 | Open | Open | 1.01 | -3.47 | 1.08 |
| SATC | 28/04/2008 | 1.83 | Open | Open | 61.2 | -1.09 | 63.39 |
| GILT | 19/05/2008 | 10.88 | Open | Open | 0.09 | -1.38 | 1.47 |
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