Deviant Stock Market Trading Behaviour Identified by New Service.
November 13 2003--Some recent examples of Early Warnings are: the FleetBoston Financial acquisition announcement by Bank of America, the merger of Moore Wallace Incorporated with R. R. Donnelley & Sons Company, and Boardwalk Equities Inc.'s considering transferring itself into a real estate investment trust. In each of the above, Early Warnings were provided days before the news stories broke that were followed by big price changes. Details on these and other examples can be seen on the 'Case Studies' page of the measuredmarkets.com web site.
The Measuredmarkets Early Warning Service for Stocks looks at the trading data for individual common stocks and analyses that behaviour from the measures of Closing Price, Volume (total), and - uniquely - 'Trades' (total number of actual transactions each day). Looking at these measures over nine time series, generates 27 points-of-view. The process mathematically determines what is the normal trading pattern for each stock. Next it runs "today's" closing data against the prior patterns and reports, as Early Warning flags, if a stock has deviated from its normal path. If a stock is listed on more than one covered exchange, the Volume and Trades counts are combined.
The process that Measuredmarkets uses was developed by a former investment analyst and stockbroker, with the assistance of industry professionals involved in financial markets, statistical analysis, programming, database and web site operations. Measuredmarkets Inc. is a Canadian-controlled company, incorporated in 1997, with minority shareholders in the U.S.A. and U.K.
The Measuredmarkets Early Warning Service provides alerts when stocks exhibit unusual trading behaviour that does not conform to prior established patterns. Such alerts frequently occur before important price-changing news is released to the public. Available to subscribers on the Internet, this Service provides a useful tool for investors, news media and regulatory authorities and can help "level the playing field".
Currently coverage is for common stocks on the following exchanges: New York, American, NASDAQ (main) and Toronto (TSX).
This article courtesy of http://www.stock-trading-resources.com/directory.
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