IMX

[bryanmcn]

Ok so IMX lingers in the $4 to $5.50 range for 6 months. Then one day it pops 50% on news.
How is this a momentum play?
I know. I know. Its a "secret". But doesn't your system filter out the noise from unexpected news like this?
Bryan

[Super Stock Picker]

Hello Bryan,

You're right, this is definitively one of our preferred pattern here, and it would have been dismissed in the case of an acquisition.

But, what's happening here, is that as the market has been a bit "weak" the last few months, it allows case like this one to pop up in our filters with the help of this one-time 50+% growth.

From what I can guess, if IMX keeps its momentum for the next few weeks, there's no reason it should be dropped but if it slips a bit, it may be dropped pretty fast as it is indeed not a very good momentum player and our relative filters will be quite fast to find better replacements.

We'll talk again in the next weeks or so I guess...

[Victor]

Bryan, note the original system (without delayed entry) is not advised on the site.  This means IMX needs to survive the following week for it to make it into the V1 portfolio... and only then is it "advised" to enter.  Basically the one week delay is another filter on trade selection.  So if the news excitement dies off, IMX might drop right back to where it came from, and ideally this means it would not make it to V1 or beyond.  If it holds up, well... then it's got some momemtum behind it, I guess.

Cheers,

Victor

[bryanmcn]

So are you saying that the weekly is not a preferred portfolio? I'm not sure I follow your logic.

[Victor]

Hi Bryan,

Somewhere on the site there's a mention of no longer using the basic system (w/o delayed entry).  This appears to work out in hindsight whereby I determined the basic system could be improved by a number of strategies (entry & stops), but I really couldn't find something to improve the delayed systems.

I think the best strategy is to use the basic system as a watch list, with the intention of getting in later in that week if the outperformance continues.  Otherwise just wait and see how things shape up over the following weeks.  Or just pick one of the delayed systems, and follow it.

I've still got plenty of work to do in determining the best way to use the information (selections and timing) from the site.

Cheers,

Victor

[Super Stock Picker]

Hello Guys,

About the Price Momentum Weekly portfolio: indeed, we do not recommend to use it as is.

You can check our performances table and see that this portfolio is regularly outperformed by any of the delayed versions:
http://www.superstockpicker.com/portfolios.php#perf_table

Also, we had published a study at the time of the creation of the delayed versions that explains the advantages of the new portfolios compared to the former one:
http://www.superstockpicker.com/ultimate_price_momentum_series_study.html

[bryanmcn]

The study appears to be a couple of years old. Have you any more recent studies?