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 (RIO), Vale (VALE), Tiffany (TIF), Motricity (MOTR), Las Vegas Sands (LVS), Delcath (DCTH), Celgene (CELG) and Cummins (CMI), and one bearish pick: Paccar (PCAR). Again, we are looking at the 5-day Pattern using a Neutral match.
Stock | No. of Patterns | 1-day % Win | 2-day % Win | 5-day % Win | Average Return Per Trade (> 5 day) |
RIO | 170 | 57 | 55 | 59 | 5.5% |
VALE | 66 | 55 | 58 | 67 | 7.2% |
TIF | 183 | 57 | 56 | 59 | 5.4% |
MOTR | 118 | 51 | 57 | 50 | 6.1% |
LVS | 812 | 56 | 40 | 53 | 5.0% |
DCTH | 408 | 49 | 55 | 54 | 5.0% |
CELG | 50 | 42 | 52 | 49 | 3.9% |
CMI | 409 | 42 | 53 | 58 | 4.3% |
PCAR | 117 | 54 | 53 | 58 | 3.5% |
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%.