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Long & Short Ideas for February 10th with PatternDNA

Feb. 10, 2011 10:44 AM ETRIO, VALE, TIF, VLTC, LVS, DCTH, CELG, CMI, PCAR
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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%.

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