THE BEST GIFT EVER.

by Dr. Bart DiLiddo Friday, 12/22/2006
Dear Santa:
I'm not a kid anymore, but I'm writing to you to ask for something I really want. I don't expect to see it under the tree on Christmas morning, but I do want it very much. Let me explain.

When I sort stocks by Comfort Index, CI, descending in Stock Viewer and look at graphs of the top stocks, my eyes turn from brown to green. Take China Life, for example. It seems that this stock has been going up forever and it just keeps going higher and higher. I finally bought it a couple of months ago, so I'm not complaining. But I do want to know how I could have found it at $40 a share instead of $80. That's what I want for Christmas, a way to find really big winners when they are in the early stages of development.

Now, I'm not asking for your help just because I'm lazy. I've been working on this problem for a long time. So let me tell you about some of the things I've tried. First of all, it is clear that all of these stocks repeatedly hit new highs. So I developed searches which found stocks which had repeatedly hit new highs. The problem here was that by the time I locked onto them, they were overbought and tended to go down too often. After considerable experimentation, I finally designed some searches which found stocks hitting 52-week highs, but were not overbought. I did this by including a weekly trend in the searches in which Rec was <>B, <>B, <>B, <>B, B, B. In preliminary testing, it has given some pretty good results. Price appreciation performance was not as good as I would have liked, but the percentage of winners was high and the draw-downs were small. There are many other things that I have tried that haven't worked, so I could still use your help.

Santa, I can't close this letter without thanking you, once again, for all the great gifts I've received over the years. I don't need or want a PlayStation, an X-Box or a new set of golf clubs. I already have VectorVest, the Best Gift Ever.

Merry Christmas,
Bart DiLiddo

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