Four Sigma Picks Valeant Pharmaceuticals International

Our stock picking systems have started picking up steam and today picked Valeant Pharmaceuticals.  It will put the stock into the portfolio if it trades above today's closing price anytime over the next 5 days.

Earlier this week, the system picked Cantel Medical Corp which has held on to a solid gain this week of almost 14% so far.

The Sigma value of the VIX has been steadily falling indicating some of the fear is leaving the market.  The overall market Sigma is still below 1, but it has been increasing little by little which is a very good sign.  There have been several industries that have broken into positive Sigma territory as a whole indicating strength.  These are industries you would expect to do well, but there are some surprises.  

Industries that have been rising are travel and leisure, education services, fertilizer chemicals, steel producers, heavy construction, and discount retailers.  In this economy and with the current Barack Obama plan for infrastructure investment, it's no wonder these stocks are doing well.

Keep watching for more stock picks.  I have a feeling 2009 may be a very good year for our stock picking system.  Watch it at www.foursigmatrading.com.

Positive Territory; Education Stocks Pass A Milestone Today

Since this economic turmoil in the market began a few months ago, every sector has been in negative sigma territory.  Today, for the first time in more than two months, one sector crossed above zero; education stocks.  These are the stocks that have been leading the way for the past month as jobless rates increase and people are looking to sharpen the saw in the classroom.

Apollo Group is leading the sector and has been on a relative tear approaching a new 52 week high.  Capella is up more than 50% from its lows in October.  Universal Technical Institute is a close third in its sigma performance teaching automotive, diesel, collision repair, motorcycle and marine technicians.  It's no doubt these skills will be great to have as people are putting off the purchase of new vehicles and maintaining their old ones.

It's exciting to see the sector turn into positive territory although the market in general is still seeing a sigma value below 2.5.  Another bright sign is the sigma value of the VIX has been dropping and is now at -1.23.  This is an indicator that the volatility is calming down and getting back to normal.

Find all of the sector sigmas at http://foursigmatrading.com/industrygroups.php.