Kapitall Strategies: Buying The Stocks That Defied Today's Meltdown

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(List compiled by Eben Esterhuizen, CFA)

It's a brutal day for the market. With that in mind, we wanted to check on the stocks that are actually seeing significant gains during today's session. Should you be buying today's winners?

Description of a 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 120 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 (2:00pm ET), the stock is up 2.48% since Friday'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 -38.18% over the last year.

2. Eldorado Gold Corp (EGO): Gold Industry. At time of writing (2:00pm ET), the stock is up 5.25% since Friday'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 8.32% over the next 10 trading days. The stock has returned 0.58% over the last year.

3. Greenlight Capital Re, Ltd. (GLRE): Property & Casualty Insurance Industry. At time of writing (2:00pm ET), the stock is up 3.54% since Friday's close. Over the last quarter, there have been 2 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 5.22% over the next 10 trading days. The stock has returned -13.12% over the last year.

4. Allied Nevada Gold Corp. (ANV): Gold Industry. At time of writing (2:00pm ET), the stock is up 3.11% since Friday'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 5.18% over the next 10 trading days. The stock has returned 83.88% over the last year.

5. New Gold, Inc. (NGD): Nonmetallic Mineral Mining Industry. At time of writing (2:00pm ET), the stock is up 3.71% since Friday's close. Over the last quarter, there have been 9 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 4.59% over the next 10 trading days. The stock has returned 79.78% over the last year.

6. Yamana Gold, Inc. (AUY): Gold Industry. At time of writing (2:00pm ET), the stock is up 3.78% since Friday'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 33.67% over the last year.

7. Aurizon Mines Ltd. (AZK): Gold Industry. At time of writing (2:00pm ET), the stock is up 7.45% since Friday'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 3.84% over the next 10 trading days. The stock has returned 5.62% over the last year.

8. Goldcorp Inc. (GG): Gold Industry. At time of writing (2:00pm ET), the stock is up 3.24% since Friday'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 3.74% over the next 10 trading days. The stock has returned 15.3% over the last year.

9. Nevsun Resources Ltd. (NSU): Gold Industry. At time of writing (2:00pm ET), the stock is up 4.16% since Friday'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 3.64% over the next 10 trading days. The stock has returned 36.34% over the last year.

10. Randgold Resources Ltd (GOLD): Gold Industry. At time of writing (2:00pm ET), the stock is up 6.53% since Friday'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 3.58% over the next 10 trading days. The stock has returned 9.86% 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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