ACE'S "TIMELY" & "UNTIMELY" STOCKS - HOW TO USE & HOW THEY PERFORM"Timely" stocks are
ACE'S stocks whose pick date prices are below their EMA-13 price. "Untimely" stocks are ACE'S stocks whose pick date prices are above their EMA-13 price.
ACE'S suggests -- when a stock's pick price is below its EMA-13 price -- that the pick price IS presently timely AND advantageous buy price for the stock. Conversely, ACE'S suggests -- when a stock's pick price is above its EMA-13 price -- that the pick price IS presently NOT timely NOR advantageous buy price for the stock. ACE'S have used EMAs as a timing tool since February 2007.
In realistic investment scenarios,
ACE'S will simulate how the EMAs can be used to time a buy, and show how the "timely" stocks fared vis-a-vis the "untimely" stocks. To start, we first need to group the "timely" stocks in one group (i.e., Group A) and the "untimely" stocks in another (i.e., Group B). Our investment rule are simple: (1) Buy the picked stock the "next day" (immediately following its pick date) at its Opening price; and (2) evaluate the stocks three months after their respective buy dates, using the stocks' closing price on those evaluation dates.
Note that in some instances (for "timely" stocks), at their pick date, the EMA-13 price is higher than the pick price, but when the stock is bought the "next day", the stock's price could rise higher than its (pick date) EMA-13 price. For example: Company V's EMA-13 price when picked on 5/25/07 was $21.59 sh. (which was higher than its pick price of $ 21.43, thus making the stock a "timely" stock when picked). When bought the following business day, on 5/29/07 at its opening day price, the stock's price had risen to $21.83 (which was $0.24 higher than its EMA-13 pick date price).
ACE'S investment rule is to buy the "timely" stock the "next day", at its opening day price (irrespective of the "next day" opening price being higher or lower than the EMA-13 price). Note though that in other instances, the "next day" opening buy price could drop further relative to the stock's pick price and pick date EMA-13 price. SEE: (5th row) Company in Table A).
Table A ("TIMELY" STOCKS - 3-MONTH PERFORMANCE (STOCKS BOUGHT "NEXT DAY")" shows the pick date, EMA-13, "next day", "next day" buy and post 3-month prices of the "timely" stocks; and their respective 3-month gains (or losses). Similarly, Table B ("UNTIMELY" STOCKS - 3-MONTH PERFORMANCE STOCKS BOUGHT "NEXT DAY")" shows the pick date, EMA-13, "next day", "next day" buy and post 3-month prices of the "untimely" stocks; and their respective 3-month gains (or losses).
(Read the rest of the report at ACE'S "
Findings & Insights" page)
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By: AcesStocksAces
