Introduction to Performance by Antichartjunk.com

I have been working on a tool titled that I will release soon.

The tool will include only stocks/ETFs that while on an antichartjunk list have passed through their initial pivot (i.e. breaking out) on a daily chart with at least a 40 increase of its 50-day average daily volume while also closing above the initial pivot point. If a stock/ETF has already broken out with the above parameters or gaps into or above the range then it will not be included. Therefore, recent big antichartjunk winners such as MSG, QIHU, LAD, XXIA, KORS, and PRLB will not be included. The tool will provide both an example of potential gains as well as an example of potential losses. Performance will not account for the effects of proper risk management or poor risk management, pyramiding in and out of positions, potential dividends, liquidating before earnings, varying positions sizes, entering at the most ideal point of the pivot range, etc.

Though perhaps obvious, I would like to point out that growth stocks typically outperform the overall market during an overall market uptrend and typically underperform the overall market during an overall market downtrend. Further, a greater number of stocks will typically breakout in a stronger uptrend versus a relatively weaker uptrend and a greater number of stocks will typically breakdown in a stronger downtrend versus a relatively weaker downtrend. Therefore, underneath the surface of showing mere what-if scenarios, the tool may provide insight into the strength of the overall market. Performance will show loses at times which will highlight the real life trading importance of such techniques not implemented within the tool such as proper risk management, pyramiding, liquidating before earnings, varying positions sizes, entering at the most ideal point of the pivot range, conviction, etc.

Data tracking started Week 48 of 2012. At the time of writing, all of the losers so far include RAX from Week 51 (-18.55), THO from Week 4- Day 3 (-10.31), STX from Week 4 (-8.35), FAF from Week 3 (-2.65), and VPFG from Week 1 (-2.08).