CNBC's Strategy Lab

M

marketbarometer

http://articles.moneycentral.msn.co...esting/StrategyLab/Rnd14/StratLabSummary.aspx

I love to follow Strategy Lab where the money managers and newsletter writers are given $100,000 and then go on to embarass themselves.

What amazes me is that no one ever talks about technical analysis. For example, Ken Kam reasoned that Grow was a great buy in the new year because all of the tax selling was done. However, if he checked a technical chart then he would have found that it had risen above the Bollinger Bands and was due for a correction to the 20 moving day average. He also never mentioned anything about seasonality, general market trends, or any other variables.

(BTW, GROW should be a buy right now since it bounced up against the 20 day moving average that its been walking up and has not violated since the Summer of 2005)

Is this how he operates his Marketocracy fund? He makes his trades based on simple reasoning and then executes with no technical charts or considerations?

The CNBC Champ Ko has already violated his rules by swinging into trades when he clearly stated before that he would sit on the sidelines with his cash.

Kelly Wright selected a bunch of stocks that he read about in Barron's.

I hate to say it, but I think I can do a better job then these characters.
 
ko's sort of screwed now because he has a guaranteed pump into any stock he recos, and his buys tend to be worse than others for that very reason.

i preferred it when his picks would go up a little more on the first day, set up a great short opp. but too many people caught on too fast.

and they changed the rules to make it a little more realistic. the cnbc game had gone under the way the old bucket shops (early 1900s) would do it; last print counts, you can get ANY size off at that print. needless to say, that kind of size in the real market would move it substantially. good for game, not quite so when trading a real market.

i'm not a fan of bottom feeding, but ko seems to be better than most at it.

btw - RE: technical analysis - didn't you know that's still a dirty word? you can get 30 seconds of airtime with "pennant / ascending triangle / etc". but you can get several minutes with fundamentals, and it sounds much more intelligent. and then it's good at 30, great at 26 spectacular at 22, and amazing when you have no more money left at 18...

for longer term pictures, technicals are the driving reason, backed by some kind of fundies (PEG, good/new industry, etc.); the pair together produce the best results.
 
Quote from runningman:

CNBCs only strategy seems to be hire very attractive hosts and cheerlead for a bull market. That's just my observation, though.
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running - fox is better for that than cnbc. in both the attractive and cheerleading. but i think the last time i saw something on fox news was 6 months ago, so maybe it's changed.

i didn't like the cnbc staff movement, except for tyler mathisen, who i thought was awful at being on camera.

i generally keep them on to see if someone comes on and pumps (so i can fade), if there's huge breaking news, to match up time near EOD, and to hear some of the stuff which goes on. some of that i could get via bloomberg, but my cable provider doesn't offer that.

though (OT) whenever cnbc gets 2 people on discussing politics or economics mixed with politics, i flip to ESPN for 5 minutes.
 
Hi ex broker I'm glad you've seen the light and ended your campaign against mankind. Can you or me play strategy lab? Do you send in a request? And is there a prize? Most of these stock picking contests are pure bunk last time around the winner had just put all his
" fake " money into a crashed Spanish internet stock that rebounded from $1 to $10. Never would have risked that capital in real life I'm sure.

Have any of you seen the smart money all star bowl?
There are two cats there who took $10,000 to bigtime gains- Felix Wang now has a $142,371 portfolio and Brandon Vanzee is up to $123,787! Truly incredible numbers working off $10K capital to invest. The third place guy is all the way down at $18,000 which is still great.
 
ko reco'd nbix today.

what's different is that he owns it in his own account (duly noted in the article).

so he may have a harder time winning the contest, but at least he'll make some money for his own account.
 
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