Using the free version of PatternDNA we took a look at Jim Cramer's Lightening Round picks. This week he had eight bullish calls: Rio Tinto (NYSE:RIO), Vale (NYSE:VALE), Tiffany (NYSE:TIF), Motricity (MOTR), Las Vegas Sands (NYSE:LVS), Delcath (NASDAQ:DCTH), Celgene (NASDAQ:CELG) and Cummins (NYSE:CMI), and one bearish pick: Paccar (NASDAQ:PCAR). Again, we are looking at the 5-day Pattern using a Neutral match.
|Stock ||No. of |
|Average Return |
Per Trade (> 5 day)
The probability for a higher close on Day 1 is 50%, 53% for Day 2 and 54% by Day 5, so there is no real edge for stocks going forward.
Vale (VALE) has a 67% probability of a higher close by Day 5 (69.7% Pattern Win Percentage beyond day 5) and offers an Average Return Per Trade of 7.2% (Average Return Per Trade assumes an initial stop of 10%, raised to 5% off the price reached on a 15% gain. Ultimate Profit Target of 25%).
Honorable mention to Motricity (MOTR). Its Pattern offered a 68% win percentage with an Average Return Per Trade of 6.1%.