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Daytrading: TANER APP (IV)
Trade cycle decleases while life cycle increases. How many days between buy dates and sell dates of our trades are trade cycles which tent to shrink recently. If trade cycles become zero, we call them daytrades.
Daytrade was so popular several years ago. It was a fad in the investor world: Many naive ambitious traders sat on computers, and trades all day. They were misguiided by seminars and gurus with fancy charts and track records. Most daytraders ended up loosing their lifetime savings.
Daytrades in this post are quite different in their features. They are simply byproducts of daily tradings to follow the TANER Momentums or to make gains in a very near term with some Leveraged ETFs/ETNs.
This year 43 daytrades have been made. The average profit was 1.6% and the average two-way commissions was just $3.63. The follwong two tables show the results.
Daytrading (2011) Sotrted by Trade Date
SYMB
B DATE
B PRICE
S DATE
S PRICE
COMM
G/(L) %
#DAY
CMG
1/13/2011
221.00
1/13/2011
227.05
$0.00
2.7%
0
BIDU
2/7/2011
118.75
2/7/2011
119.62
$5.90
0.5%
0
CENX
2/16/2011
16.68
2/16/2011
17.42
$5.90
4.1%
0
VXX
2/28/2011
30.09
2/28/2011
30.27
$5.90
0.3%
0
XIV
3/7/2011
127.79
3/7/2011
130.29
$5.90
1.6%
0
NFLX
3/28/2011
239.80
3/28/2011
239.92
$5.60
0.0%
0
BIDU
6/2/2011
132.81
6/2/2011
137.53
$0.00
3.6%
0
SSO
6/23/2011
48.93
6/23/2011
49.58
$0.00
1.3%
0
UYG
6/23/2011
58.55
6/23/2011
58.95
$0.00
0.7%
0
CMG
8/9/2011
295.00
8/9/2011
301.06
$0.00
2.1%
0
MCD
8/9/2011
84.28
8/9/2011
85.96
$0.00
2.0%
0
NFLX
8/9/2011
231.35
8/9/2011
237.00
$0.00
2.4%
0
MDY
8/11/2011
146.98
8/11/2011
150.51
$0.00
2.4%
0
MCD
8/17/2011
86.84
8/17/2011
87.13
$4.92
0.1%
0
MCD
8/17/2011
86.84
8/17/2011
87.13
$2.45
0.1%
0
MCD
8/17/2011
87.01
8/17/2011
87.48
$4.92
0.3%
0
MCD
8/17/2011
86.84
8/17/2011
87.48
$2.46
0.5%
0
DLTR
8/18/2011
62.51
8/18/2011
64.46
$5.90
2.8%
0
VNQ
8/24/2011
54.44
8/24/2011
55.25
$5.90
1.1%
0
YUM
8/26/2011
51.68
8/26/2011
52.88
$5.90
1.9%
0
CMG
10/4/2011
287.10
10/4/2011
299.95
$0.00
4.5%
0
CMG
10/21/2011
319.40
10/21/2011
328.55
$0.00
2.9%
0
NFLX
10/25/2011
75.00
10/25/2011
77.64
$5.90
3.0%
0
DIA
10/27/2011
120.69
10/27/2011
121.46
$5.90
0.1%
0
BEN
11/3/2011
104.55
11/3/2011
106.67
$0.00
2.0%
0
WMT
11/8/2011
58.05
11/8/2011
59.34
$0.00
2.2%
0
AMZN
11/11/2011
212.25
11/11/2011
217.27
$5.90
1.9%
0
FAS
11/15/2011
62.83
11/15/2011
65.23
$5.90
3.3%
0
UPRO
11/16/2011
59.19
11/16/2011
60.75
$5.90
2.1%
0
DDM
11/21/2011
53.17
11/21/2011
53.88
$5.90
0.9%
0
UWM
11/25/2011
28.89
11/25/2011
29.45
$5.90
1.4%
0
AMZN
12/1/2011
191.25
12/1/2011
197.16
$0.00
3.1%
0
IBM
12/6/2011
190.82
12/6/2011
193.31
$5.90
0.9%
0
AMZN
12/7/2011
191.19
12/7/2011
194.35
$0.00
1.6%
0
BEN
12/9/2011
97.10
12/9/2011
98.74
$5.90
1.3%
0
JPM
12/9/2011
32.59
12/9/2011
33.15
$5.90
1.3%
0
UPRO
12/12/2011
56.45
12/12/2011
57.11
$0.00
1.2%
0
TVIX
12/13/2011
40.77
12/13/2011
43.38
$5.90
5.9%
0
TVIX
12/16/2011
37.18
12/16/2011
37.61
$5.90
0.6%
0
TVIX
12/19/2011
37.91
12/19/2011
38.70
$5.90
1.6%
0
FAS
12/20/2011
57.25
12/20/2011
59.22
$5.90
2.9%
0
PRGO
12/23/2011
100.28
12/23/2011
101.00
$5.90
0.2%
0
BEN
12/29/2012
94.61
12/29/2012
95.83
$5.90
0.8%
0
TOTAL
43
TRADES
AVG
$3.63
1.8%
0
Daytrading (2011) Sotrted by Ticker Symbol
SYMB
B DATE
B PRICE
S DATE
S PRICE
COMM
G/(L) %
#DAY
AMZN
11/11/2011
212.25
11/11/2011
217.27
$5.90
1.9%
0
AMZN
12/1/2011
191.25
12/1/2011
197.16
$0.00
3.1%
0
AMZN
12/7/2011
191.19
12/7/2011
194.35
$0.00
1.6%
0
BEN
12/9/2011
97.10
12/9/2011
98.74
$5.90
1.3%
0
BEN
11/3/2011
104.55
11/3/2011
106.67
$0.00
2.0%
0
BEN
12/29/2012
94.61
12/29/2012
95.83
$5.90
0.8%
0
BIDU
2/7/2011
118.75
2/7/2011
119.62
$5.90
0.5%
0
BIDU
6/2/2011
132.81
6/2/2011
137.53
$0.00
3.6%
0
CENX
2/16/2011
16.68
2/16/2011
17.42
$5.90
4.1%
0
CMG
1/13/2011
221.00
1/13/2011
227.05
$0.00
2.7%
0
CMG
8/9/2011
295.00
8/9/2011
301.06
$0.00
2.1%
0
CMG
10/4/2011
287.10
10/4/2011
299.95
$0.00
4.5%
0
CMG
10/21/2011
319.40
10/21/2011
328.55
$0.00
2.9%
0
DDM
11/21/2011
53.17
11/21/2011
53.88
$5.90
0.9%
0
DIA
10/27/2011
120.69
10/27/2011
121.46
$5.90
0.1%
0
DLTR
8/18/2011
62.51
8/18/2011
64.46
$5.90
2.8%
0
FAS
11/15/2011
62.83
11/15/2011
65.23
$5.90
3.3%
0
FAS
12/20/2011
57.25
12/20/2011
59.22
$5.90
2.9%
0
IBM
12/6/2011
190.82
12/6/2011
193.31
$5.90
0.9%
0
JPM
12/9/2011
32.59
12/9/2011
33.15
$5.90
1.3%
0
MCD
8/17/2011
86.84
8/17/2011
87.13
$4.92
0.1%
0
MCD
8/17/2011
86.84
8/17/2011
87.13
$2.45
0.1%
0
MCD
8/17/2011
87.01
8/17/2011
87.48
$4.92
0.3%
0
MCD
8/17/2011
86.84
8/17/2011
87.48
$2.46
0.5%
0
MCD
8/9/2011
84.28
8/9/2011
85.96
$0.00
2.0%
0
MDY
8/11/2011
146.98
8/11/2011
150.51
$0.00
2.4%
0
NFLX
3/28/2011
239.80
3/28/2011
239.92
$5.60
0.0%
0
NFLX
10/25/2011
75.00
10/25/2011
77.64
$5.90
3.0%
0
NFLX
8/9/2011
231.35
8/9/2011
237.00
$0.00
2.4%
0
PRGO
12/23/2011
100.28
12/23/2011
101.00
$5.90
0.2%
0
SSO
6/23/2011
48.93
6/23/2011
49.58
$0.00
1.3%
0
TVIX
12/13/2011
40.77
12/13/2011
43.38
$5.90
5.9%
0
TVIX
12/16/2011
37.18
12/16/2011
37.61
$5.90
0.6%
0
TVIX
12/19/2011
37.91
12/19/2011
38.70
$5.90
1.6%
0
UPRO
11/16/2011
59.19
11/16/2011
60.75
$5.90
2.1%
0
UPRO
12/12/2011
56.45
12/12/2011
57.11
$0.00
1.2%
0
UWM
11/25/2011
28.89
11/25/2011
29.45
$5.90
1.4%
0
UYG
6/23/2011
58.55
6/23/2011
58.95
$0.00
0.7%
0
VNQ
8/24/2011
54.44
8/24/2011
55.25
$5.90
1.1%
0
VXX
2/28/2011
30.09
2/28/2011
30.27
$5.90
0.3%
0
WMT
11/8/2011
58.05
11/8/2011
59.34
$0.00
2.2%
0
XIV
3/7/2011
127.79
3/7/2011
130.29
$5.90
1.6%
0
YUM
8/26/2011
51.68
8/26/2011
52.88
$5.90
1.9%
0
TOTAL
43
TRADES
AVG
$3.63
1.8%
0
The Tiger Rule: TANER APP (III)
There are three major investment markets: (a) equity (including ETF, option, equity mutual fund), (b) fixed-income security (corporate bond, treasury, and their mutual fund), and foreign exchange. This article, as the title clearly point to, focuses exclusively on the equity market with three stocks among the 60 equities in the TANER System, which was introduced in the previous article, TANER (part one). The major difficulty of this writing is threefold. The first is I have quite a wide spectrum of readers in terms of their trading experience, trading preference (long, short, or both), trading knowledge (about information, technique, or data), degree of independence, and computer skill (internet). The second is I have a broad range of professional readers in different areas such as brokerage, hedge fund, mutual fund, rating agency, insurer, bank, regulator, etc. I assume that I am reaching you not only within the U.S. but also, perhaps, globally. The third difficulty is how much I disclose my trading records without misleading you, but also without unintended over-disclosure, or without showing its limitations in my discussion.
Price theory in Microeconomics teaches us that an equilibrium price of any commodity (in this case, equity) is determined by supply and demand schedules. Most of us do not know how markets bring that equilibrium price precisely, because we do not care about it. For my presentation, however, I have to touch briefly on the precise interaction process of supply and demand forces toward an equilibrium. That is the only way for me to explain (a) why high-beta equities such as BIDU (1.79), compared to low-beta equities such as MCD (0.53), are acting differently, (b) why "equity price theory" has not been developed at the first place, (c) what kind of information and data we should search and compile, and how to analyze and how to use them for our trading, (d) why this kind of research does not produce, quite often, the intended results, compared to more "simple" technical approach with some charts, (e) why I shy away from all available reports, recommendations, forecast, charts, brokerage services as a main ground for my investment decision, (f) why I invented the TANER System, which allows only the closing prices of members to enter, and (g) why the products of TANER are worth reviewing. (I will give you my answers in the next articles piecemeal.)
The first step to understand the equilibrium process is that we must distinguish movements along the curve and movements due to shift of curves. Is this distinction too abstract? Let us proceed with a simple mental exercise. Imagine a supply curve, sloping upward to the right, and a demand curve sloping downward. The vertical axis is price and the horizontal axis is quantity. Let us assume that the current price is above the equilibrium price, and that the market develops an excess supply, which brings price down along the supply schedule to the left (meaning reducing supply due to competition among sellers), and along the demand schedule to the right (meaning increasing demand through competition among buyers). When you watch the MCD quote, you feel this process in some degree. How about BIDU or NFLX? It looks like a tiny airplane through storm at a certain moment.
Think about why these are so different. The short answer is that BIDU is a tiger, while MCD is a turtle. The curves of turtles are relatively flat and stable. The curves of tigers are stiff (BIDU has almost vertical curves, which are twisted and disconnected in some portion). The stiffer the curve the more the price change. What are possible reactions of investors? They are chasing only tigers in the short run, ignoring good turtles which are adding substantial steady gains over a longer run. The final question is what causes shifts of curves. Earning surprises, new equity issues, dividend changes, M&A, regulation changes, buy-back plans, inside trading, brokerage (or rating agency) recommendations, and all local and global news are the main causes. Can you reasonably believe that you can cover all relevant information for only one tiger, say NFLX? I am afraid of hearing the answer "yes." Last week (Dec.13-17) I witnessed many articles, reports, comments, views, predictions, and curses, related to NFLX. All investors of NFLX cannot be winners simultaneously. The market rule is that an investor can win only by beating the other guy. That is why everybody is chasing the best information to edge up to others.
I propose the following conclusion: "The Tiger Rule."
The Tiger Rule
Rule 1 : Each Bet is Strictly Independent.
Rule 2 : 2 or 3 Tigers Only .
Rule 3 : Maximum Commitment : 5% of Capital
DISCLAIMER : The Tiger Rule is my own rule, which may not necessarily be suitable for you. Some adjustments based on your situation are required in case you want to adopt it.
Some clarifications of the Rule : Rules 2 and 3 are straightforward. Rule 1, however, needs further clarification. The betting size and term depend on (a) the shape of supply and demand curves and (b) human judgment. Supply and demand curves are not directly observable.
Riding Tigers is just one of my three extra activities ("Riding Tigers," "Day-Trading’" and "Long Shorts"), and is still in the process of development. So far, my experience dictates the following.
"The stiffer the curves of the supply/demand schedule, and or, the swifter the shift of the schedule, the smaller the betting and/or the shorter the term."
I have traded NFLX, BIDU, and CMG, quite often in 2010 and 2011 as well. The follwong two tables show the results.
(A) The 2011 Performance
SYMB
B DATE
B PRICE
S DATE
S PRICE
COMM
G/(L) %
#DAY
NFLX
11/30/2010
198.38
1/27/2011
209.61
$5.90
5.6%
58
NFLX
12/2/2010
198.80
1/27/2011
209.28
$5.90
5.3%
56
NFLX
12/13/2010
183.20
1/10/2011
187.04
$5.90
2.1%
28
NFLX
2/23/2011
215.10
1/31/2011
211.58
$5.90
-1.6%
23
NFLX
2/23/2011
207.90
2/24/2011
215.30
$5.90
3.5%
1
NFLX
2/23/2011
207.90
2/24/2011
215.30
$5.90
3.5%
1
NFLX
2/23/2011
216.17
2/1/2011
212.81
$4.95
-1.6%
22
NFLX
2/28/2011
204.40
3/2/2011
206.07
$5.90
0.8%
2
NFLX
2/28/2011
204.40
3/1/2011
206.07
$5.90
0.8%
1
NFLX
3/8/2011
199.93
3/10/2011
202.38
$5.90
1.2%
2
NFLX
3/8/2011
199.93
3/9/2011
202.38
$5.90
1.2%
1
NFLX
3/17/2011
216.76
3/16/2011
219.80
$5.90
1.4%
1
NFLX
3/18/2011
214.99
3/22/2011
219.70
$0.04
2.2%
4
NFLX
3/28/2011
239.80
3/28/2011
239.92
$5.60
0.0%
0
NFLX
3/29/2011
236.24
3/28/2011
239.92
$3.25
1.6%
1
NFLX
4/6/2011
239.99
4/4/2011
245.22
$0.05
2.2%
2
NFLX
4/11/2011
228.52
3/23/2011
225.25
$5.90
-1.4%
19
NFLX
4/12/2011
230.20
4/13/2011
235.35
$0.05
2.2%
1
NFLX
4/18/2011
230.19
4/19/2011
237.43
$0.05
3.1%
1
NFLX
4/26/2011
235.25
4/20/2011
241.00
$5.90
2.4%
6
NFLX
4/26/2011
239.99
4/21/2011
249.31
$5.90
3.9%
5
NFLX
4/26/2011
232.64
4/28/2011
236.00
$5.90
1.4%
2
NFLX
5/3/2011
232.40
5/2/2011
238.00
$5.90
2.4%
1
NFLX
5/3/2011
229.98
5/9/2011
232.92
$5.90
1.3%
6
NFLX
5/16/2011
241.32
5/12/2011
243.99
$0.05
1.1%
4
NFLX
6/16/2011
247.08
5/23/2011
246.91
$5.90
-0.1%
24
NFLX
6/16/2011
254.00
5/25/2011
259.38
$5.90
2.1%
22
NFLX
8/9/2011
231.35
8/9/2011
237.00
$0.05
2.4%
0
NFLX
8/10/2011
234.66
8/11/2011
240.07
$0.05
2.3%
1
NFLX
8/22/2011
210.45
8/23/2011
213.19
$2.95
0.9%
1
NFLX
9/2/2011
209.99
9/6/2011
215.50
$0.05
2.6%
4
NFLX
9/1/2011
233.72
9/14/2011
209.29
$0.03
-10.5%
13
NFLX
9/13/2011
207.13
9/14/2011
209.29
$0.03
1.0%
1
NFLX
9/29/2011
114.16
10/5/2011
119.66
$2.95
4.3%
6
CMG
1/3/2011
215.00
2/3/2011
236.11
$0.04
9.8%
31
CMG
1/13/2011
221.00
1/13/2011
227.05
$0.03
2.7%
0
CMG
2/8/2011
245.36
2/10/2011
278.23
$0.05
13.4%
2
CMG
2/11/2011
248.35
2/14/2011
269.80
$5.90
8.6%
3
CMG
2/15/2011
271.41
4/5/2011
277.14
$5.90
2.1%
49
CMG
2/22/2011
254.31
3/15/2011
259.45
$5.90
2.0%
21
CMG
8/9/2011
295.00
8/9/2011
301.06
$0.05
2.1%
0
CMG
8/10/2011
296.74
8/11/2011
309.93
$0.05
4.4%
1
CMG
8/17/2011
316.01
9/19/2011
333.00
$2.95
5.1%
33
CMG
9/20/2011
334.05
9/21/2011
340.98
$0.05
2.1%
1
CMG
10/4/2011
287.10
10/4/2011
299.95
$0.05
4.5%
0
CMG
10/4/2011
293.83
10/10/2011
301.19
$0.05
2.5%
6
CMG
10/21/2011
319.40
10/21/2011
328.55
$0.05
2.9%
0
BIDU
2/7/2011
118.75
2/7/2011
119.62
$5.90
0.7%
0
BIDU
2/7/2011
118.75
2/14/2011
131.02
$5.90
10.3%
7
BIDU
2/15/2011
128.56
3/23/2011
130.83
$5.90
1.7%
36
BIDU
2/22/2011
123.00
4/4/2011
139.61
$5.00
13.5%
41
BIDU
5/23/2011
129.57
5/24/2011
131.42
$0.05
1.4%
1
BIDU
5/23/2011
129.57
6/1/2011
136.34
$0.05
5.2%
9
BIDU
6/2/2011
132.81
6/2/2011
137.53
$0.05
3.6%
0
BIDU
6/3/2011
137.88
6/30/2011
139.40
$0.05
1.1%
27
BIDU
6/7/2011
123.86
6/14/2011
124.87
$0.05
0.8%
7
BIDU
6/15/2011
121.90
6/21/2011
124.44
$0.05
2.1%
6
BIDU
7/8/2011
146.71
7/19/2011
151.72
$0.05
3.4%
11
BIDU
7/21/2011
151.38
7/22/2011
154.75
$0.05
2.2%
1
59
TRADINGS
AVERAGE
$2.99
2.7%
10
(B) The 2010 Performance
SYMB
B DATE
B PRICE
S DATE
S PRICE
COMM
G/(L) %
#DAY
NFLX
6/3/2010
$112.78
6/10/2010
$119.02
$0.00
5.50%
7
NFLX
7/8/2010
$116.78
7/12/2010
$119.64
$0.00
2.40%
4
NFLX
7/20/2010
$117.13
7/21/2010
$123.25
$5.90
3.50%
1
NFLX
7/23/2010
$103.08
7/23/2010
$108.64
$5.90
4.20%
0
NFLX
7/26/2010
$102.40
7/27/2010
$104.67
$5.90
1.60%
1
NFLX
7/28/2010
$102.59
7/30/2010
$101.65
$0.00
-0.90%
2
NFLX
7/29/2010
$96.66
7/30/2010
$101.65
$0.00
5.20%
1
NFLX
8/2/2010
$101.46
8/4/2010
$106.85
$0.00
5.30%
2
NFLX
8/5/2010
$106.58
8/5/2010
$108.52
$0.00
1.80%
0
NFLX
8/6/2010
$108.90
8/10/2010
$124.25
$0.00
14.10%
4
NFLX
8/17/2010
$134.94
11/22/2010
$183.85
$5.90
36.00%
97
NFLX
8/18/2010
$129.00
11/29/2010
$194.93
$5.90
50.90%
103
NFLX
8/23/2010
$128.56
9/1/2010
$130.78
$0.00
1.70%
9
NFLX
8/31/2010
$122.60
9/1/2010
$130.78
$0.00
6.70%
1
NFLX
9/10/2010
$146.70
9/13/2010
$148.71
$0.00
1.40%
3
NFLX
9/14/2010
$146.87
9/22/2010
$152.60
$2.95
3.70%
8
NFLX
9/28/2010
$161.81
9/29/2010
$164.21
$5.90
1.20%
1
NFLX
9/30/2010
$167.68
10/21/2010
$173.06
$5.90
2.90%
21
NFLX
9/30/2010
$163.03
10/26/2010
$173.99
$5.90
6.30%
26
NFLX
10/1/2010
$159.99
10/21/2010
$170.97
$4.95
6.60%
20
NFLX
10/28/2010
$174.41
11/10/2010
$175.84
$5.90
0.50%
13
CMG
2/2/2010
$99.99
3/1/2010
$107.39
$0.00
7.40%
27
CMG
9/9/2010
$163.19
9/10/2010
$164.44
$0.00
0.80%
1
CMG
9/29/2010
$176.07
10/5/2010
$177.50
$5.90
0.50%
6
CMG
10/28/2010
$210.50
11/4/2010
$222.29
$5.90
5.30%
7
CMG
12/6/2010
$235.53
12/7/2010
$241.52
$0.00
2.50%
1
BIDU
2/9/2010
$439.90
3/8/2010
$534.50
$0.00
21.50%
27
BIDU
7/12/2010
$71.06
7/13/2010
$73.31
$0.00
3.20%
1
BIDU
8/5/2010
$85.73
8/10/2010
$87.89
$0.00
2.50%
5
BIDU
10/6/2010
$102.30
10/18/2010
$102.55
$3.84
0.10%
12
BIDU
10/6/2010
$102.30
10/18/2010
$104.68
$3.84
2.20%
12
BIDU
10/6/2010
$102.30
10/22/2010
$107.75
$3.54
5.20%
16
BIDU
10/6/2010
$102.30
10/25/2010
$109.62
$3.54
7.00%
19
33
TRADINGS
AVERAGE
$2.65
6.60%
14
NOTE: The columns of cost ($) and sale proceed ($) are hidden.
Two losses: (-0.9%) on 7/30/2010) and (-10.5%) on 9/14/2011) out os 92 tradings : A loss ratio is 2.2%.
Ten day-trading (NFLX: 8/5/2010, 7/23/2010, 3/28/2011, & 8/9/2011 CMG: 1/13/2011, 8/9/2011, 10/4/2011, & 10/21/2011 BIDU: 2/7/2011 & 6/2/2011),.
Longest Holding : 103 days
COMM : two-way commissions
Tiger
in The Tiger Rule has no relation with Tiger Woods.How To Use Tms (TANER Momentums) (Nov. 7, 2011)
On Nov. 7 TANER Momentums are posted as:
TANER MOMENTUM:.NOV.7, 2011.ETF:T1(VDE VAW VXF) A1(VWO) E1(TIP PHB) R1(VPU BWX). One-month term. yk
TANER MOMENTUM:.NOV.7, 2011.ETF T2(DIA VTI VAW VXF) A2(*) E2(VPU) R2(TIP VNQ BWX). Two-month term. yk
TANER MOMENTUM:NOV.7, 2011.ETF T3(QQQ DIA VAW) A3(VTI) E3(*) R3(TIP BND PGF BWX). Three-month term. yk
TANER MOMENTUM:NOV.7, 2011 STOCK T1(JOYG CAT FLS) A1(NFLX) E1(MCD PRGO ESRX) R1(DLTR). One-month term. yk
TANER MOMENTUM:NOV.7, 2011:STOCK T2(PH CME) A2(KSU LIFE) E2(MCD ESRX) R2(KFT KO). Two-month term. yk
TANER MOMENTUM.NOV.7, 2011 STOCK T3(DLTR HD CME) A3(LIFE) E3(MCD KFT) R3(JNJ ESRX). Three-month term. yk
What do you do these daily posts on StockTalk? We are on a learning curve to utilize a handy list of the TANER System which was set up in 2009 right after the 2007-2008 worldwide financial turmoil. Read a post titled Go TANER: The Market Primer, to refresh the basic concepts:
* T (Topping) : leading leaders
* A (Advancing): following leaders
* N (Neutral): residual (not selected ones)
* E (Emerging): leading laggards
* R (Reversing): Following laggards
The TANER System contains 20 ETFs and 40 stocks which represent the market and most sectors. Four ETFs and four stocks are selected as leaders (either T or A). Four ETFs and four stocks are selected as laggards (either E or R). In sum, eight ETFs out of twenty (40%) and eight stocks out of forty (20%) are selected as leaders or laggards, leaving 60% of ETFs and 80% of stocks as the residual in N.
We can summarize the above six momentums as:
ETF: 1-2-3 VAW TIP BWX
ETF: 1-2 VXF VPU
ETF: 2-3: DIA VTI
ETF: 1 VDE VWO PHB
ETF: 2:VNQ
ETF: 3 QQQ BND PGF
STOCK 1-2-3 MCD ESRX
STOCK: 1-3 DLTR
STOCK: 2-3 CME LIFE KFT
STOCK: JOYG CAT FLS NFLX PRGO
STOCK: 2:PH KSU KO
STOCK: HD JNJ
Note: The numbers are terms in month. Securities underlined are laggards.
Everyday with this summary list, buys, sells, or exchanges (among mutual funds) can be made. All trades except exchanges are posted on StockTalks to share these trades with other investors. For options players (for me options are excluded) call/put posions can be taken.
Updated How to Use TANER Momentums will be posted on Instablog every weekend prior to Monday. You can make the same summary every following day (Tue, Wed, Thu, and Fri). Your feedback is welcome. Our cooperated efforts will improve the application of this innovative system.