FAQs Frequently Asked Questions
Market Lab Report
Have you found any evidence that stocks, which are highlighted in IBD's top 50, are targeted by algo systems that can, for example, force out many retail traders by selling a stock down 8%?
Q: Have you found any evidence that stocks, which are highlighted in IBD's top 50, are targeted by algo systems that can, for example, force out many retail traders by selling a stock down 8% and then buying to cover-- all the while knowing that investors will buy back in.
A: No. Leading stocks can still be bought and pyramided, then sold at a profit using sell rules such as the 10dma/50dma. Of course, even in less challenging markets, the success rate is usually 50% at best (this was O'Neil's typical success rate in a bull market) thus the importance of cutting your losers and riding your winners.
First published: | 22 Mar 2011 |
Last updated: | 4 Apr 2012 |