Kapitall Strategies: Buying Into Today's Big Winners (10 Days Trade Exit)

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(List compiled by Eben Esterhuizen, CFA)

Strategy: If a stock gains more than 3% since yesterday's close, buy it, and sell it on the close 10 trading sessions later.

But which of today's big winners might be good candidates for this strategy?

To help you get ideas, we started with a universe of about 150 stocks that have gained by more than 3% since yesterday's close (i.e. strategy candidates).

We went back in time, and evaluated how many times these stocks have rallied like this over the last quarter.

For each backtested rally strategy, we'll also report the average return made on the investment (ignoring transaction costs).

Recent history suggests that these stocks are exhibiting upward momentum, and may add to today's gains. That said, it's important to point out that past performance is no guarantee of future results.

In other words, just because these stocks gained from similar rallies over the last quarter, there is no guarantee that they will do so again today.

As always, use this list only as a starting point for your own analysis.

For each stock listed, we'll also include the annual performance.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Universal American Corp (UAM): Health Care Plans Industry. At time of writing (2:30pm ET), the stock is up 8.64% since yesterday's close. Over the last quarter, there have been 3 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 9.26% over the next 10 trading days. The stock has returned -46.12% over the last year.

2. AMERIGROUP Corporation (AGP): Health Care Plans Industry. At time of writing (2:30pm ET), the stock is up 4.08% since yesterday's close. Over the last quarter, there have been 3 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 9.2% over the next 10 trading days. The stock has returned 30.1% over the last year.

3. Silver Wheaton Corp. (SLW): Silver Industry. At time of writing (2:30pm ET), the stock is up 3.75% since yesterday's close. Over the last quarter, there have been 7 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5.19% over the next 10 trading days. The stock has returned 90.53% over the last year.

4. Aurizon Mines Ltd. (AZK): Gold Industry. At time of writing (2:30pm ET), the stock is up 3.17% since yesterday's close. Over the last quarter, there have been 6 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5% over the next 10 trading days. The stock has returned 23.97% over the last year.

5. Eldorado Gold Corp. (EGO): Gold Industry. At time of writing (2:30pm ET), the stock is up 5.05% since yesterday's close. Over the last quarter, there have been 8 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.92% over the next 10 trading days. The stock has returned 9.29% over the last year.

6. Sohu.com Inc. (SOHU): Internet Information Providers Industry. At time of writing (2:30pm ET), the stock is up 3.92% since yesterday's close. Over the last quarter, there have been 8 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.61% over the next 10 trading days. The stock has returned 65.67% over the last year.

7. Yamana Gold, Inc. (AUY): Gold Industry. At time of writing (2:30pm ET), the stock is up 3.28% since yesterday's close. Over the last quarter, there have been 5 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.57% over the next 10 trading days. The stock has returned 41.06% over the last year.

8. AuRico Gold Inc. Ordinary Share (AUQ): Gold Industry. At time of writing (2:30pm ET), the stock is up 3.26% since yesterday's close. Over the last quarter, there have been 10 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.27% over the next 10 trading days. The stock has returned 110.69% over the last year.

9. Minefinders Corp. Ltd. (MFN): Industrial Metals & Minerals Industry. At time of writing (2:30pm ET), the stock is up 4.02% since yesterday's close. Over the last quarter, there have been 5 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.16% over the next 10 trading days. The stock has returned 72.07% over the last year.

10. Liquidity Services, Inc. (LQDT): Internet Software & Services Industry. At time of writing (2:30pm ET), the stock is up 14.61% since yesterday's close. Over the last quarter, there have been 8 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 3.8% over the next 10 trading days. The stock has returned 81.98% over the last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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