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MESA-Sabrient Trading Alerts

|Includes:ANEN, Forest Laboratories, Inc. (FRX), TAP, WPZ

MESA-Sabrient Trading Alerts

Signals generated at end-of-day 7/9/2010 for the open on Monday, July 12, 2010:

No long entry signals today

  • Exit long:  TAP 
  • Exit long:   WPZ  

No short entry signals today

No short exit (cover) signals today

Open trade summary:

   Long FRX since 6/29/2010, profit: $ 264
   Long ANEN since 6/29/2010, profit: $ 136
   Long TAP since 6/23/2010, profit: $ -18
   Long WPZ since 6/21/2010, profit: $ 370

End of report for Friday, July 09, 2010

About the MESA-Sabrient Trading Alerts

The MESA-Sabrient Trading Alerts employ MESA Software’s algorithmic system for trading the stocks in the Sabrient Outlook Rankings.The Outlook Rankings reflect each stock’s relative probability of short-term upside or downside action based on Sabrient’s proprietary quantitative fundamental analysis. 

NOTE:  New subscribers should ignore the open positions and start their trading with the first entry alert that received. 

  • The MESA-Sabrient system produces end-of-day trading signals after the market day’s closing bell for execution at the next open.  All trades are intended to be placed as market orders on open.
  • Exit signals are also specified for each open trade.  All trade exits are intended to be placed as market orders at the next open.
  • Long signals (buy) are produced from the top quartile of the Sabrient Outlook Rankings and short signals (sell short) are from the bottom quartile. Thus the technical signals are always in-sync with the fundamental rankings.
  • The number of open trades at any given time varies significantly with market conditions.  
  • The system produces more long trades than short ones.  Historically the ratio of longs to shorts has been about 10:1.
  • Hold times are typically less than one month.
  • Profits shown in the daily reports assume an initial investment of $10,000 per stock with no allowance for slippage or commissions. To convert the dollar profit to percentage, divide by 100. For example, if a stock’s profit was listed as $234, this would be equivalent to a 2.34% gain on the initial investment.

The Winners of the Sabrient Technical Challenge Are . . .

Courtesy of Scott Brown

The Challenge: Improve our fundamentals-based rankings with a technical overlay.

Many traders took up the challenge. Only two succeeded in besting our results. Now we’re offering trading alerts based on their two technical systems.

Meet Trader #1

Trader #1 is a rocket scientist, John Ehlers. John is a retired Senior Engineering Fellow from one of the largest aerospace companies in the world. He has been a private trader since 1976 and is a respected authority in the field of technical trading in the futures markets. He is also a well-known author of several books on trading, including Rocket Science for Traders and MESA and Trading Market Cycles. His approach is unique.  John uses theories developed to analyze sound, heat and digital waves to remove the "noise" inherent in those transmissions and he applies the same analysis to a time series of stock movements to help predict a stock’s direction.

MESA-Sabrient Trading Alerts (RS2)

John Elhers saw the outstanding buy-and-hold performance of Sabrient’s fundamentally ranked equities–Sabrient’s Watch List–i.e., stocks ranked by David Brown, a former NASA scientist who was part of the lunar landing team. John applied his technical timing system to the watch list and improved performance.  From September 1 through December 31, 2009, the trades were evaluated via back-testing, but from January 1 through May 7, the trades were in real time.

Take a look at the combined results:

September 1, 2009 through May 7, 2010
Profit Factor 2.94
% Wins 67%
Avg Trade Size $10,000
Avg Profit ($) $249.84
Avg Profit (%) 2.50%
Avg Time (days) 13

With John Ehlers’ technical overlay on Sabrient’s fundamentally-ranked equities, the MESA-Sabrient Trading Alerts offers a combined profit potential which is way more than the sum of the two parts.

See a detailed trading history here.>

Meet Trader #2

Trader #2 is an international currencies and futures trader, Luiz Alvim. Luiz is a technician’s technician. He has over 30 years of experience in the stock, options and futures markets and extensive experience in building trading models and systems. He developed the Alpha Trading System and published award-winning books covering the futures markets. He has also co-authored stock and options books and the Alpha Stocks and the Alpha Options newsletters.

Luiz overlays his reversal system on a small universe of fundamentally strong stocks - the Sabrient’s Annual Top Stock Picks. In his test of the fifteen 2009 top stocks stocks, he increased Sabrient’s 2009 returns from 41.3% to 101.0%! He’s now trading the 18 stocks in the Sabrient Top Stocks for 2010.

The Alpha-Sabrient Reversal Strategy

Luiz’s Alpha-Sabrient Reversal Strategy combines a technical trend reversal system with the small group of Annual Top Stock Picks from Sabrient.

In the 12-month 2009 simulated backtest, Luiz’s trend reversal overlay turned the excellent returns of the 2009 Top Stocks (+41.3%) into +101.0%!  In the 2010 forward test — in the very volatile 5-1/2 months from January through mid-June — Luiz’s trend reversal system transformed a -6.0% loss into a gain of +31.9%!

The Alpha-Sabrient Reversal Alerts combine the best of two worlds — fundamental analysis and technical analysis — to provide high-probability trading candidates with precise entry and exit trading signals. Alpha’s trend reversal algorithm is overlaid onto the Sabrient Top Stocks for 2010. These stocks were selected for their long-term, buy-and-hold potential, based on Sabrient’s proprietary quantitative fundamental analysis.

The Alpha-Sabrient Reversal System produces entry/exit signals that allow you to trade the 18 stocks in the Top Stock for 2010 for a substantially increased return.

  • Any trade alerts that occur will be emailed to subscribers after market close for execution at the next market open.
  • Long signals include Buy to Open and Sell to Close.
  • Short Signals include Sell Short to Open and Buy to Close.
  • Trades are closed when a countertrend is identified by our reversal system.
  • The ratio of long trades to short trades, historically, has been about even


If you’d like to be among the first to see what all the excitement’s about, sign up for a FREE 30-day trial to one or both of the trading alerts. We’ll be launching both trading alert services within the next few days - sign up now so that you don’t miss opening day!


Sabrient plays no role in the Alpha Systems technology. Click here for the Sabrient disclaimer.
Alpha plays no role in the Sabrient Outlook Rankings. Click here for the Alpha disclaimer.

Luiz Alvim is a minor shareholder in Sabrient Systems, LLC; he is not an officer or employee.