How
to Ride the Wave
We can do so by buying good
stocks long on an upturn
and selling poor stocks
short on a downturn! VectorVest
OnLine, our stock analysis
and portfolio management
system, tells us exactly
which stocks to buy long
and which to sell short.
There are several searches
for finding long canidates
such as Timsons Tigers, Cash
Cows and Explosive EPS Stocks.
For selling short we have
Early Move Down, Dougs Downers
Supercharged and Worst Stocks Over $20.
They produce great results!
FIGURE
II. TABLE OF RIDING
THE WAVE RESULTS
| Trend |
Start Date |
% Gain/Loss |
| Up |
11/18/99 |
0% |
| Dn |
03/20/00 |
56% |
| Up |
07/13/00 |
134% |
| Dn |
07/28/00 |
113% |
| Up |
09/01/00 |
77% |
| Dn |
09/15/00 |
66% |
| Up |
01/18/01 |
147% |
| Dn |
02/23/01 |
154% |
| Up |
04/30/01 |
191% |
| Dn |
06/25/01 |
203% |
| Up |
11/13/01 |
315% |
| Dn |
02/06/02 |
327% |
| Up |
03/06/02 |
286% |
| Dn |
05/07/02 |
344% |
| Up |
05/15/02 |
350% |
| Dn |
05/28/02 |
328% |
| Up |
11/04/02 |
502% |
| Dn |
01/24/03 |
374% |
| Up |
03/21/03 |
446% |
| Dn |
03/15/04 |
879% |
| Up |
04/05/04 |
786% |
| Dn |
04/19/04 |
859% |
| Up |
06/29/04 |
934% |
| Dn |
07/13/04 |
866% |
| Up |
09/07/04 |
936% |
| Dn |
03/16/05 |
1,143% |
| Up |
06/01/05 |
1,154% |
| Dn |
09/21/05 |
1,289% |
| Up |
11/18/05 |
1,081% |
| Dn |
05/18/06 |
1,204% |
| Up |
08/22/06 |
1,491% |
| -- |
02/02/07 |
1,726% |
|
|
|
Let's
look at some facts. We ran
a back-test using our "Cash Cows" strategy in VectorVest
OnLine to buy the top 10
stocks at the bottom of
each wave. We sold any stock that received a VectorVest 'Sell' Recommendation and replaced the position with a new selection from the Cash Cows search. At the
top of each wave we sold all of our long positions. We used
the resulting funds as collateral
to short the worst 10 stocks
as found with the "Dougs Downers Supercharged"
strategy. Of course, we
covered our shorts at the
bottom of each wave and
used the available funds
to buy the 10 best "Cash Cows" stocks for the next
upmove.
To get a taste of how well
this strategy worked with
our actual calls, we began
with a $10,000 non-margin
portfolio on November 18,
1999 and used the signal
dates shown on Figure II.
The step-by-step details
of this strategy can be
reproduced in their entirety
with the VectorVest OnLine
software. A summary of results
up to February 2, 2007 is
given in Figure II.
Our
Riding the Wave Portfolio
gained $167,943.68* in just
over 7 Years. Fantastic!
*past performance is not
a guarantee of future results |
