Should You Buy From the New Highs List?

I have seen studies from time to time about buying new highs and/or buying new lows. Today I will look at buying various new yearly highs and selling those buys one month later. I will use the current S&P 500 stocks for the study. Before someone comments on Survivorship bias, let me know of any S&P stock that was deleted from the index, or went out of business, while making new highs! 🙂

  • Reading the Back test report, i.e. what each line means: Here!

Results, from 2000 through March 24 inclusive (Includes 2 bear markets)

Using our Bull Market Definition, from November 2009 till March 24;

The results may, in fact probably will change, with another exit strategy or another time frame, i.e. 3 months later, 6 months later. For now suffice it to say a potential edge exists here.