We ran 90 well known stocks through our phantom portfolio using our Premium monthly service trading method for the past three months September 6th - December 5th, 2001. Note, we do not take into account commissions or short selling rules in this phantom portfolio.

This three-month window offers a better way to see recent correlations versus annual tracking.

This list will be updated periodically and the names of the top five stocks in the list will be provided to only the Monthly subscribers.

I have included the index stocks below.

As our computer software advances we hope to be able to run more stocks than the current 90.

Volatility Index (VIX)

The Volatility Index is a way to track caution and fear in the market place by tracking the options market. We have run the Volatility Index through our algorithm using the same days we trade on and found the following attributes. On positive ion ratio days the VIX moves down meaning people are not as cautious. On Negative Ion Ratio days the VIX moves up, Negative days are good for people but bad for the markets as people tend to be more level headed (they look both ways before crossing the street). Our monthly trading system is based on our exclusive algorithm that forecasts these fluctuating Ion ratios ahead of time.

Last year was an extremely good year for our system, whereas 2001 has become a worse case scenario which we have seen many overriding events to our method such as the September 11th terrorist attacks, 10 interest rate cuts (the most in any one year), severe solar storms, recession... 

As a result we have seen some drop in our accuracy. However when we reviewed the VIX and compared last year to this year we discovered almost identical accuracy with the forecasted up or down direction. Year 2000 we correctly had 50 correct and 36 wrong while in 2001 we've had 49 correct and 35 wrong.

The difference shows up in the percentage loss on the incorrect forecasts

Year 2000 average movement on the 50 correct forecasts = 8.50% and average movement on the 36 incorrect forecasts = -4.36%) while in 2001 we've seen the average movement on the 49 correct forecasts = 8.34% and the average movement on 35 incorrect forecasts =  -7.00%.

In other words we are still batting the same average in 2001 but we're not hitting the homeruns as often as we did in 2000.

Theoretically, if we only managed 50% correct direction in our forecast we would still be ahead given the difference in the average percentage of correct days vs. incorrect averages and if we only managed the same percentage averages on correct versus incorrect we would still be ahead due to forecasting more correct trends than incorrect.

Our method is still working even through the worst-case scenario of 2001.  

The top twenty list is based upon the same forecast used with the VIX.