Undressing the Window Dressers: Top Stocks Continue End of Quarter Outperformance

Earlier in the week we sent our subscribers a report, which was later picked up by CNBC, on end of the quarter window dressing. The report concluded that the stocks which do best from the start of the quarter up until the start of the last week, will also outperform the market in the final five trading days of the quarter.

So far Q1 2007 is shaping up to be no different, although given the market's weakness this week, the net result is that investors following this strategy will just end up losing less than than the market overall. As the table below illustrates, the twenty best performing stocks in the Russell 1000 through 3/23 are down 0.46% through Thursdays close, while the average stock in the Russell 1000 is down 1.40%.

In terms of deciles, we end up with a similar scenario. The group of stocks with the best performance up through 3/23 (decile 1) has outperformed every other decile in the final four days of the quarter.

Comments

[klaudenhemet:]

This is just to great. Geez, i remember Laslow Birinyi from Rukyeser's Wall Street Week. What an
intellegent guy he is. I was not aware of TickerSense. I wasn't aware of SeekingAlpha until a few
weeks ago. And now i signedup for a intro trial @ DayTradeTeam the week of my 62nd year of life
on planet Earth. This is to much for a sane man!
Many Thanks to WhoEver, Claude [aka klaudenhemet] My God, iam sorry hungry to make some money. Iam so darn tired of nickels and dimes.
And quartely losses. Iam so tired and disgusted with so many things least of which is my governments
intervention in a soverign nations affairs. Getting rid of its tryant is one thing but chosing its form of
government is quite another. Perhaps this small voice in the NorthWest wilderness should be blogging.
Then again there are to many of those damned things. Whoever took the time to read this obscure
message gets my evening prayer. Best regards, Claude Posella [aka klaudenhemet]

2007 Apr 01 12:53 PM