Friday, April 17, 2009

The Trading Systems Wake Up From Their Winter Slumber

The Four Sigma and Three Sigma systems have been in hibernation.  Since the market has found its footing over the past few weeks, it has given the sigma values in many stocks the chance to rise. 

Last week, the system picked Dendreon Corporation (NASDAQ:DNDN) that went from $6.65 to $17.99 for a nice 170% gain.  You don't see gains of this magnitude in this short period of time very often, but it is a great case of what I've been seeing when a stock begins to make a strong move only to be magnified in the near future while others pile in.  In the case of DNDN, it seemed to catch the early good news of the cancer vaccine before the news results were released.

Another stand-out is Ruby Tuesday, Inc. (NYSE:RT) that has had a nice 20% gain since the system picked it last week although earnings and revenues were lower, the outlook for the stock is improving.

Overall, so far this year, the Four Sigma system has an overall gain of 24% and the Three Sigma system has an overall gain of 37%.

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