Here is a stock which has gone up around 1500% in last 260 days.That is a significant move.
FRPT,Force Protection Inc (Google Yahoo Earnings Chart)
What is a significant move in a stock. Assuming you are not a high frequency day trader, then you would define significant move as 5% in a day for individual stock. If you add say another criteria of saying the 5% move should be accompanied by volume increase over yesterday. So lets say 5% move on higher volume is significant. The real reason for this is to find out how many stocks make that kind of a move in a day. Supposing 5% of the total universe of stock on a given day has 5% move, is that significant.Does a one day significant move indicate future returns.
Many of the things which I look at on daily basis and monitor is basically a variation of significant moves on various time frames. A 5% move on individual stock on higher volume with a cut off off 100000 plus volume to me is significant move based on past studies of stock price moves. Similarly a move of 2% on any of the Index is significant. Or a move of 2% on a sector is significant. It is more significant if it happens on higher volume.
Taking the same logic further a 50% move in a stock in a month is extremely significant move. It indicates an aberration. A 25% move in a month in a stock is on a significance scale also very significant.A 25% move in a quarter is significant in a market where the average long term drift is less than two digits. Similarly a move of 100% in a year on a stock is a significant move.
Now if you constantly study significant moves and build an iterative model over a period of time you will probably learn a lot about such moves. A brute force backtesting might give you even greater understanding in to such moves. A combination of backtesting and continuous iteration gives you a live model of what makes a stock make a significant move.
Largely my study of significant moves supplemented by additional insights has helped me understand what kind of stocks are likely to make a significant move for a given time frame. There are factors one can isolate which increase probability of a stock making a significant move. That gives you a significant edge in avoiding the bad or low probability trades.
Here are 25 stocks which have made significant moves in last 260 days. Is there any thing one can learn from them. How many of them are on your radar.
ANGN,Angeion Corp (Google Yahoo Earnings Chart)
CHDX,Chindex International Inc (Google Yahoo Earnings Chart)
CLEC,Us Lec Corp Cl A (Google Yahoo Earnings Chart)
CRVL,Corvel Corp (Google Yahoo Earnings Chart)
CTDC,China Technology Development Group Corp (Google Yahoo Earnings Chart)
ENPT,En Pointe Technologies (Google Yahoo Earnings Chart)
FTGX,FiberNet Telecom Group Inc (Google Yahoo Earnings Chart)
GVP,Gse Systems Inc (Google Yahoo Earnings Chart)
HTI,Halozyme Therapeutics Inc (Google Yahoo Earnings Chart)
INAP,Internap Network Svcs Cp (Google Yahoo Earnings Chart)
ININ,Interactive Intelligence (Google Yahoo Earnings Chart)
ISIG,Insignia Systems Inc (Google Yahoo Earnings Chart)
KNOL,Knology Inc (Google Yahoo Earnings Chart)
MEMY,Memory Pharmaceuticals (Google Yahoo Earnings Chart)
MSI,Movie Star Inc (Google Yahoo Earnings Chart)
NAVI,Navisite Incorporated (Google Yahoo Earnings Chart)
ONSM,Onstream Media (Google Yahoo Earnings Chart)
PRGX,Prg-schultz Intl Inc (Google Yahoo Earnings Chart)
PRH,VitaCube Systems Holdings Inc (Google Yahoo Earnings Chart)
PTT,Vcg Holding Copr (Google Yahoo Earnings Chart)
ROHI,Rotech Healthcare Inc (Google Yahoo Earnings Chart)
SLP,Simulations Plus Inc (Google Yahoo Earnings Chart)
SMTK,SIMTEK Corp (Google Yahoo Earnings Chart)
SOFO,Sonic Foundry Inc (Google Yahoo Earnings Chart)
SVVS,SAVVIS Inc (Google Yahoo Earnings Chart)
Studying significant moves on daily basis can give you a significant edge in finding stocks likely to make significant moves in the future.
More posts in this series: Significant Moves