Help! My stock went up 50%?!?!

What should you do if a stock you are holding goes up 50% in one day?  Yesterday night at 5:30 I found myself contemplating this happy question on ARTX (Aerotech, Corporation), which had gone up 50% on news of a large order from the U.S. Department of Defense.  So, I did what I usually do when confronted with such questions — I used Equities Lab to get an answer.   How to ask the question?  I chose the most naive query possible:  “Find me all stocks that have gone up at least 40% in just one day”, and then backtested it,

When do you need to sell?

  One of the stocks you are holding may need attention.  It may need to be sold. Holding it may cause you to give up all the gains you’ve accumulated while you were holding it. If you aren’t lucky enough to be sitting on a pile of gains, you may be at the brink of a disaster. Why, you ask? Could be a number of reasons… and that’s what today’s article is about. What makes it a good time to sell a stock you believe in? We’ll talk about a few good (and not so good) alerts, and discuss what makes a good alert… Down

Will the Russell 2000 go up?

Q: Will The Russell 2000 go up? A: Yes Q. But will it go up over the next 5 years? Is my money safe there?   A: Yes. (I’m 89.0% sure of my answer, using to calculate 5 years of investment with a lump sum of $100,000, and a withdraw of that $100,000 at the end so I could get the nice number rather than staring at the lines and seeing how many went down. The average line more than doubled. Their data goes back to 1927, and I am using U.S. Small caps as a proxy for the Russell

Does P/E matter?

Does PE matter? People say that PE (Price to earnings ratio) is a primary factor when choosing a stock to outperform, but lets put it to the test Mythbuster style… The first, most obvious idea is to backtest “low” PE stocks: Wow! That looks encouraging…. but how does it compare to the baseline. The strategy we used was simply PE < 20, and a subset of the market that has stocks with reasonable market caps, reasonable volumes, and a few employees. We now plot the baseline, which is just the tradable screen. That’s rather surprising — the “null market screen”