Tuesday - RIG and IBD system updates

The above reflects XLE component stocks performance for Monday. RIG continues to hold the top slot while XLE itself shows respectable results.

Above is the update of the IBD20 system test begun last. Issued last Monday, the IBD weekly top 20 ranked as follows: CLR GHM POT BUCY MA TITN BIDU RIMM ARD DRYS DNR CF SWN PCLN SOL SQM TTES FTI HES KWK. The original thought was to trade this group (or the top 10) as a basket to pull in some low risk short term returns. These results are based on a 500 bar backtest. On 5 minute bars, this equals 78 bars a day or 6.4 days total span. Although 16 of 20 stocks returned positve, its clear that money management stops could prevent open P/L situations like DRYS RIMM POT and PCLN. In addition, a companion short side strategy should improve overall returns, although in an uptrending market, these results tend to be muted.

With the markets currently showing some weakness, the results of these scans next week should prove informative.