History Says Buy After a 5-Day Decline

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Sept. 26 (Bloomberg) -- On today's "Insight & Action," Ada Johnson looks at stocks recommendations on Bloomberg Television's "Street Smart." (Source: Bloomberg)

History says you buy after a five-day decline.

The question is, what do you buy?

We've got the answers.

Bespoke research has helped us identify three other times when we have had five-day declines of one percent or less.

That is what we have had over the last couple of days.

All declines, and then look what happened over the next five days.

You had rallies.

That would argue for buying stocks today, right?

We are not up much, but at least we are up, so far, so good.

The question is, what do you buy?

Beta defined, beta is the percentage change in the price of the stock given a one percent change in the value of the underlying market.

In other words, if the market goes up 1%, a stock in the beta would go up 2%. you would get more out of the trade, in theory.

Here is what we did.

We went through in the s&p 1500, trying to find out the biggest name.

Let me give you an example.

Cree has a beta of 2.1. over the pastor, 1.7. -- over the past year, 1.7. these are the 10 names out of 1500 that are going to move the most.

The beta is at least 1.6, both monthly and yearly.

These are the ones to own.

I'm going to post them on twitter.

We have the top equity

This text has been automatically generated. It may not be 100% accurate.


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