Richard Moglen: Gaps and Strong Moves

Buys off Richard Moglen’s daily screen for gaps that hold: the stock opens at least 3 percent above the prior day’s close and still finishes the day up at least 5 percent, on heavier volume than usual. The gap together with strength into the close separates genuine re-ratings from one-day wonders that hand the move straight back. The thresholds were calibrated by TickerGuard. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. The check and any new purchase happen every trading day; a position is sold as soon as the price falls 15 percent below its highest level since purchase, the share drops off the list, or it is no longer rated green. If the list holds no green-rated share, the portfolio stays in cash.

This portfolio buys shares.