Last week I gave you ten stocks that were showing unusual volume activity but hadn't changed so much in price yet.
http://thequantinvestor.blogspot.com/2011/03/10-stocks-showing-unusual-volume-with.html
Well I though't I'd try and back up my post last week with some results a week later. Below is the one week performance of the stocks I said might rise.
close(3/23) close(3/30)
SNBC------3.30------------3.58------ + 8%
PZZI ------2.00------------2.05------ +3%
OVRL------2.32------------2.18------ -6%
PSMT------33.86------------36.57------ +8%
HBHC------32.47------------33.00------ +2%
HA ------6.07------------5.99------ -1%
GPOR------32.58------------35.41------ +9%
EEI ------20.16------------18.87------ -6%
PLAB------8.08------------8.91------ + 9%
WTSLA----3.55------------4.18------ + 18%
As you can see, their performance was quite impressive, with an average gain of 4.4%! For comparison the Nasdaq gained just 1.3% over that same time.
So this week I thought I'd do it again and give you ten more stocks showing unusual activity, with no price movement. This time, I'll try and improve on the measure a bit and make the assumption that increased volume isn't exactly what we're looking for, but increased money flowing into the stock is what we're looking for. Therefore I'll modify my metric from last week and change:
volume --> volume*price
or, in other words, how much money is exactly going into a stock. I believe this is a more accurate gauge of unusual activity because volume can be artificially inflated it the price falls, but a measure of pure money going into the stock accounts for this. Everything else remains the same, and for this week here is what the computer program picks up...
Symbol Money STDs above normal Price STDs above normal
PANL 16.5906 0.706
MBND 13.7489 0.7927
ACHN 10.2386 0.6756
GFRE 8.7188 -0.002
MSHL 7.4808 0.3453
ACTG 7.4762 -0.4468
VRGY 7.0326 -0.0187
ISIG 6.125 0.2311
MITSY 5.7848 0.2481
BSPM 5.7789 0.604
As usual, no promises, and don't make any investment decisions purely on my calculations. Do your own research.
The quantitative approach to investing has rapidly grown in application over the past 20 years. As home computers have increased in power and the internet has allowed unprecedented access to information, even the retail investor can now use this approach to the stock market. In this blog, we discuss a variety of quantitative approaches to investing, and provide analysis the current market state, as well as offer a number of unique insights into market sentiment.
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