Mining the IBD 100, striking gold

[Lyehopper]

Actually I think we're all lucky that you aren't taking up more space with whatever it is that you're trying to do. You picked 5 stocks from the IBD 100 list without giving any explanation of how you arrived at your choices other than their IBD 100 ratings. We all know the reasons for their being on the list in the first place. You give no rationale other than they are on the IBD 100 list and that you are going to track them for 8 wks. You give no technical explanation of their charts, no reasoning for making the selections in the first place, no plan whatsoever as to entry points or reasoning for entry, no target expectations, and no reasonalbe exit strategy or stop loss point. On top of that you try and make it sound like it is something totally earth shattering in its relevantancy to trading strategys or disciplines. You give nothing except 5 stocks with nothing else and you expect a group of experienced traders to accept what you are doing as something sophisticated or worthwhile. Give us something with a little meat on it. Something with some thought put into it and the proof thereof. You've given nothing except 5 stocks from a list of 100 an I just fail to see anything enlightening in the whole matter. If I have missed something please back it up with something substantial that we can sink our teeth into other than cheap talk. You haven't offered up anything with any of this that I can see as significant or that I might want to add to my knowledge base. On top of all that your resistance to dialogue that could have a beneficail effect on the experiment makes me wonder about the reasoning behind the whole experiment. Personally I need something with alot more substance and thought behind it. You haven't backed it up with anything near that other than the ability to pick 5 random stocks from the IBD 100 list. I think you will have to do better that that to maintain our attention.

Ski.... I think you need to tell Peanuts how you REALLY feel about his IBD 100 experiment dude.... I think complete and total honesty might prove to be..... What's the word I'm lookin' for?....hmmmmmm?.... Yeah!.... "therapeutic" for you....jejeje

btw.... How's you GoJi supply holding up?.... Sounds to me like you're about dry.lol

[Websman]

Let me repeat... IBD sucks.

[Runner]

Hey Peanuts pretty good list of stocks you have here. If I understand this you have taken a random entry into these stocks that have a strong EPS rating. Do you have any criteria for exiting these positions or are you just going to exit in 2 months? So you’re a longer-term investor I take it? Hey nothing wrong with that. Where will you exit if things move against you? Since this is IBD related don’t they jump ship at 7-8%? Not sure what IBD does anymore. I think IBD does something called CANSLIM not sure what it means. Hope these CANSLIMS work out.

[skiracer]

Actually Lye, I'm about 1" from the bottom of my barrel. But that has nothing to do with my honesty or with being straightforward with Peanuts. I fail to get the gist of what he is trying to do with his experiment. On top of that I think that he feels it is so enlightening in some sense that he is going to provide us with a revelation. He hasn't provided any substinance in his effort to give the experiment any parameters that it could work within. Nothing, nada, zippo, or zilch. If I missed something relevant that he stated from the beginning of the experiment other than he was taking 5 stocks from the IBD 100 and going to watch them for 5 weeks and paper trade them along the way then I don't see the point. So they are either going to go up or down or remain static. But what is the point. Doesn't there have to be some working parameters or some guidelines for setting this whole thing up that makes it unique or delineates it from everything else. Or is it not meant to be unique in any respect and therefore what's the point.

[Lyehopper]

Let me repeat... IBD sucks.

Yes and VTP RULES!!!!

[IIC]

Hey guys and gals, been watching for a while and decided to write my first real post:

I'd like to first share my picks from the IBD 100 which I have recently mined. OK, so you're thinking that I'm trying to be like Mr. Market by searching the IBD- well, he does have a pretty good record. (Nice FRGB pick, by the way) So, why not idolize the man with the plan and mimick his technique. Here they go:

ERS
WDC
NWRE
SNDK
ASVI
WSO

The picks above all have: RS and EPS ratings in the 90's, are listed in the top 20 performing industries of the 147 different industry groups listed by O'Neil, have 1 to 6 consecutive quarters of rising institutional sponsorship, have either an A or B SMR ranking, and are all listed in the IBD 100. Additionally, they all are trading at trailing P/E's below 50, which makes me think that all of these are selling at a discount to actual value, and now seems like a reasonable time to purchase some shares. So, this is what I'll do:

I will be tracking all 6 of these for the next 2 months and I will keep everyone updated as they progress. On paper, I will purchase $1000 worth of each stock at the closing price on Friday, Feb 17. This is the beginning of the portfolio:

Symbol / Shares / Price Per Share
ASVI / 30.7125 / $32.56
ERS / 51.1509 / $19.55
NWRE / 39.6040 / $25.25
SNDK / 17.4246 / $57.39
WDC / 41.3565 / $24.18
WSO / 14.573 / $68.62

Week 1 starts on Tuesday!

Wish me luck.




Also, I'd like to post this link to an article relating to the way oil may be traded: http://www.energybulletin.net/7707.html If you are interested in the article, you may then want to look at this stock: ICE It is expensive right now, but that does not mean someone else won't buy it for more than what it costs today.

Good luck with your personal portfolios!

Peanuts...Above is your original post...BTW, IBD has 197 Industry Groups...Now what you've done is used their Custom Screener and picked some minimum criteria...Nothing really wrong with that...But the criteria is too basic...You seem to be looking for the Holy Grail...Let me tell 'ya...I've been around the block more than a few times and the parameters you set up aren't it.

As far as my comment about the opening price...You can't buy a stock at a price from the past.

Not trying to discourage you...But with a list like this you could have just as well taken any 5 stocks from the IBD 100. Of course some will do well...And others won't...Just like any list, e.g. My IIC 100 which is readily viewable right here at Mr. M.

If you want to use their Custom Screener for ideas...I say look for the most fundamently sound stocks...Then use something like Stockcharts to see when they are technically ready to move.

I know we have given you a hard time...But if you read between the lines I think you'll find that many of us are really just trying to help...IBD is not the Holy Grail...But some of their info is useful IMO...Best, Doug(IIC)

[peanuts]

Day 6, week 2

IBD Gold Mine (IBDGM) -0.94% $6,031.39

ASVI -0.76
ERS +0.74
NWRE -0.18
SNDK -0.74
WDC -0.32
WSO -2.63

[peanuts]

Day 7, week 2

IBD Gold Mine (IBDGM) +2.49% $6,181.53

ASVI +0.22
ERS +0.77
NWRE +0.57
SNDK +1.43
WDC +0.94
WSO +1.21

[peanuts]

Actually I think we're all lucky that you aren't taking up more space with whatever it is that you're trying to do.

Is that how you really feel, or are you trying to bully me over an electronic connection?

You picked 5 stocks from the IBD 100 list without giving any explanation of how you arrived at your choices other than their IBD 100 ratings.

I gave a full explanation of the manner in which the stocks were narrowed down from the 100 original stocks in the list.

You give no technical explanation of their charts, no reasoning for making the selections in the first place, no plan whatsoever as to entry points or reasoning for entry, no target expectations, and no reasonalbe exit strategy or stop loss point.

As far as the reasoning... that's been discussed and you are not reading what I am writing if you continue to debate this. The technical indicators, entry and exit points, expectations, or stop losses are NOT pertinent when the sole object is to first gather data and THEN draw conclusions... That is what an experiment is.

On top of that you try and make it sound like it is something totally earth shattering in its relevantancy to trading strategys or disciplines. You give nothing except 5 stocks with nothing else and you expect a group of experienced traders to accept what you are doing as something sophisticated or worthwhile. Give us something with a little meat on it. Something with some thought put into it and the proof thereof. You've given nothing except 5 stocks from a list of 100 an I just fail to see anything enlightening in the whole matter. If I have missed something please back it up with something substantial that we can sink our teeth into other than cheap talk. You haven't offered up anything with any of this that I can see as significant or that I might want to add to my knowledge base.

Please show evidence of your claims... I never once have tried to enlighten anyone, and I have never claimed that there would be any good to come of this. For such an experienced trader as yourself, I find it very difficult and surprising to see that you are having such a hard time trying to grasp a concept of testing, drawing conclusions, and retesting those conclusions to come to a proven method of investing. How did you become so "experienced" and "sophisticated"? For the umpteenth time, this is an experiment, not a portfolio created to maximize profits through proper trading... those steps come in the end, after data has been gathered and a trading scheme can be statistically determined. You did not pay attention in science class, did you?

On top of all that your resistance to dialogue that could have a beneficail effect on the experiment makes me wonder about the reasoning behind the whole experiment. Personally I need something with alot more substance and thought behind it. You haven't backed it up with anything near that other than the ability to pick 5 random stocks from the IBD 100 list. I think you will have to do better that that to maintain our attention.

Resistant to dialogue? really? Where do you come up with this? I do not have 24 hours a day to respond to your thoughts and to clarify your mind, if that's what you require. I've been nothing but clear in all my communication to you and anyone else that has asked questions / made suggestions or other comments. Anything that people have suggested has been taken into consideration. I make the changes that I can see will offer a better range of data from which conclusions will be drawn. What have you offered that has given me anything constructive to add to my experiment? You have to remember something... this experiment is mine, buddy, and if you don't like, then change the channel and quit bugging me. I welcome any constructive criticism and suggestions to make the experiment better. I cannot garauntee that the changes will be made, however.

[peanuts]

Hey Peanuts pretty good list of stocks you have here. If I understand this you have taken a random entry into these stocks that have a strong EPS rating. Do you have any criteria for exiting these positions or are you just going to exit in 2 months? So you’re a longer-term investor I take it? Hey nothing wrong with that. Where will you exit if things move against you? Since this is IBD related don’t they jump ship at 7-8%? Not sure what IBD does anymore. I think IBD does something called CANSLIM not sure what it means. Hope these CANSLIMS work out.

Runner, I will be tracking and following these stocks for 2 months. Positive or negative movement has no influence on buying more or selling. This is just data gathering. The stocks were reduced from the original 100. The list is not random, the entry is not random (friday closing price), the exit will be the closing price 2 months in advance. The total gain / loss is not as important as the moves that were made during the 2 month time period. The IBD investing strategy has nothing to do with the picks, only the IBD rating system has relevance to the experiment.

My personal portfolio includes short term, medium term, and long term holdings.

[peanuts]

Peanuts...Above is your original post...BTW, IBD has 197 Industry Groups...Now what you've done is used their Custom Screener and picked some minimum criteria...Nothing really wrong with that...But the criteria is too basic...You seem to be looking for the Holy Grail...Let me tell 'ya...I've been around the block more than a few times and the parameters you set up aren't it.

As far as my comment about the opening price...You can't buy a stock at a price from the past.

Not trying to discourage you...But with a list like this you could have just as well taken any 5 stocks from the IBD 100. Of course some will do well...And others won't...Just like any list, e.g. My IIC 100 which is readily viewable right here at Mr. M.

If you want to use their Custom Screener for ideas...I say look for the most fundamently sound stocks...Then use something like Stockcharts to see when they are technically ready to move.

I know we have given you a hard time...But if you read between the lines I think you'll find that many of us are really just trying to help...IBD is not the Holy Grail...But some of their info is useful IMO...Best, Doug(IIC)

IIC,

Thank you for the clarification of the # of industry group. You are correct, it is 197, not 147. Yes, the holy grail... that's what I want. I chose the strongest of the strong... (6, by the way, not 5) I thought I outlined the criteria pretty well. What makes you say that any of the IBD stocks would do the same? This would be valuable information because IBD uses a rating system to determine the 100. I used that same rating system to narrow down the 100 to "the 6". If the rating system is bogus, then you are right, but I am testing the validity of their rating system. This is my fault... my first assupmtion was that their rating system worked... I should be first testing that assumption before proceeding with this experiement. But, this is only pertinent if what you say is true, so please explain how any of the 100 stocks would give me similar results.

After the experiemnt is tested, we will know if this is a viable investing system, or not. It may not be the holy grail that I am looking for, but MIGHT prove to be a statistically profitable system. I really appreciate your guidance. I think we can offer one another some ideas of finding that "holy grail" investing scheme. What are your ideas?

[mrmarket]

IIC,

After the experiemnt is tested, we will know if this is a viable investing system, or not. It may not be the holy grail that I am looking for, but MIGHT prove to be a statistically profitable system. I really appreciate your guidance. I think we can offer one another some ideas of finding that "holy grail" investing scheme. What are your ideas?

Does 80 consecutive profitable trades of 15% or better qualify as "Holy Grail"? If not..how many??

[IIC]

Does 80 consecutive profitable trades of 15% or better qualify as "Holy Grail"? If not..how many??

Ernie...not sure...But I was kinda thinking 100

[mimo_100]

Does 80 consecutive profitable trades of 15% or better qualify as "Holy Grail"? If not..how many??

Ernie,

If its not the Holy Grail, a ton of the finest meats and cheeses is a close second.

Tim

[peanuts]

Day 8, week 2

IBD Gold Mine (IBDGM) -1.29% $6,101.61

ASVI -0.19
ERS -0.54
NWRE -0.34
SNDK -0.57
WDC -0.23
WSO -0.93