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Hello Guy Tann: Yes please send me a copy & Thanks
Guy Tann wrote:
>
> List,
>
> If anyone is interested, I have an Excel spreadsheet that I put together
> with 3 pages. The first page lists those 13 stocks we selected out of the
> original 55 gleaned from ValueLine. The second page is a quick analysis of
> what would have happened if we had bought all 55 of the list, and the third
> page shows our breakout of 25 stocks from the original 55 using one of our
> programs to determine over-bought or over-sold conditions. These 25 stocks
> were, according to our system, ready to be bought.
>
> If anybody is interested, I can send them a copy, but didn't want to just
> throw it out on the list.
>
> Our stock selection technique is as follows:
>
> 1) Friday night, we go out on the ValueLine web site and go down to their
> stock pages. We select those stocks that have a 1 in timeliness, and a 1 or
> 2 in whatever the second column is to the right of timeliness. We look for
> a beta > 1.25. I think we snuck INTC in as well. This is our preliminary
> cut. This gave us a list of 55 different stocks. We try to stick with the
> top performing industries.
> 2) In the next step we apply one of our trading programs to each stock, to
> determine whether or not our program indicates that the stock was over-sold.
> If it was over-sold, we added the stock to our next list. This reduced the
> actual number of stocks from 55 to 25, I believe.
> 3) Theoretically, we could have bought all 25. Finally, we go through the
> list by hand on a conference call and arbitrarily select between 10 and 15
> stocks that we buy on the next day's open. We haven't spent any time on
> this step yet, and through dumb luck have managed to do fairly well with our
> portfolio.
>
> I have to give my brother for designing this approach. We will be spending
> more time on step 3 as well as working on modifying the procedure for the
> short side. Right now my brother is a little nervous selling stocks short.
> You would think that after trading futures both ways for 40 years, he
> wouldn't have that problem.
>
> Anyway, we went with 13 original stocks on Tuesday's open and added 4 more
> this morning. Based on my preliminary calculations we are a little ahead
> with our own portfolio as opposed to buying all 25 stock, but not by much.
>
> We are in the process of going back and entering the OB/OS indicator in this
> spreadsheet to do some more work on Step 2 and Step 3, above.
>
> By the way, purchasing even 100 shares of each of these 55 stocks stressed
> out each of our margin accounts, but we could have done it with a little to
> spare.
>
> Guy
>
> Paranoia...you only have to be right once to make it all worthwhile!
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