Gary Halbert · whole document (80)
zflk blitzkrieg paradigm
Then, there's the NASDAQ Exchange on which
approximately 5,600 are actively traded.
Finally, there's the AMEX or American Stock
Exchange which has approximately 760 actively traded issues.
In Section C ("Money And Investing")
of the Wall Street
Journal, there is a summary of what the stock market did
on the previous day of trading. It's called "Stock Market
Data Bank." This tells you what happened yesterday on the
Dow Jones Averages, Standard & Poor's Indexes, the Russell
1000, the Russell 2000, the Russell 3000, the Value-Line Index
and something called the Wilshire 5000. It tells what were the
most active issues, how many issues advanced, how many
declined and how many stayed the same. It reveals the
"Volume Percentage Leaders", "Volume Percentage
Losers" and it gives a breakdown of trading in NYSE
stocks on a 1/2-hourly basis from 9:30 a.m. (East Coast Time)
when the market opens until 4:00 p.m. (East Coast Time) when
it closes. This is all valuable info... so...
Let's Ignore It!
However, one part of this "Stock Market
Data Bank" reveals what stocks had the highest percentage
increase in price ("Price Percentage Gainers") and
what stocks had the greatest decrease in price which is
aptly titled "Losers."
All I was interested in when I started my
research was the column which gave out the info on the
"Price Percentage Gainers." Not only that, out of
all the gainers, I was only interested in those stocks which
had gained 50%... or
more... the previous day. I wanted to know what made this
small, elite group of stocks different from all the thousands
of other stocks traded... which did not... make that
kind of spectacular gain.
Here's what my preliminary research seems to
indicate. Of all stocks which gained 50% or more in one day of
trading...
Less Than 2%
Were Stocks Listed On
The AMEX Exchange
Guess how I eliminated my first sizable group
of horses? (Oops, I mean stocks.) Simple. I decided to ignore
the AMEX. Mushing on, I discovered...
Only 9% Of The
Top Gainers Came From
The NYSE
I decided to ignore the NYSE also...
because... the plain fact of the matter is...
89% Of All Those
Big Gainers Came From
The NASDAQ
Now, let's talk about price. Of all stocks
that gained 50% or more in price in one day, NONE of those
stocks were "penny stocks" which had a price of less
than $1.00. And yes, Virginia, there are stocks which sell for
less than one buck on all three exchanges... even the NYSE.