Nov 20, 2008 – Jupiter, FL – Oil and Gas stocks are continuing to lead the market lower with the worst performance as a group according to a new trading indicator, Sigma, developed by Four Sigma Trading. Carving the deepest lows is Nabors Industries, Ltd., a land drilling contractor from Hamilton, Bermuda sporting the lowest sigma value in the stock market. Sigma shows how normal the current stock price is by measuring the standard deviation of the recent stock price movements.
“Sigma is an oscillator that normally falls between -2 and 2 for a typical stock with the majority of the market hovering around an expected -1 to 1 “normal” level. When things start going too far negative or positive, we know something abnormal is happening with the stock and it’s time to take notice” said Jim Snyder of Four Sigma Trading, “Nabors is currently the stock with the lowest sigma value at -9.31.”
In this economy and the way oil prices are headed, it’s no wonder why these stocks are going lower. The energy industry has the lowest sigma value as a whole at -3.46.
“If you average all of the sigmas in the market right now, you get an average of -2.70 which is incredibly low,” says Jim Snyder. “Looking at individual industry groups, those in discount retailing and some banking sectors are beginning to recover.”
Watching the sigma values may give good ideas for stock picks. Stocks making high Sigmas could be takeover targets, launching new products, or gaining attention from some larger players in the market. The highest and lowest sigmas are flagged by Four Sigma Trading for further investigation on their website at FourSigmaTrading.com. Find out more at FourSigmaTrading.com or read the Four Sigma Trading blog at foursigma.blogspot.com.
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