by Philip Wu
In our Blog article last week, we identified NKE and TSLA as two candidates to trade based on “Logic chain” analysis. Please refer back to last week’s article as to why NKE and TSLA were chosen as the symbols to trade. In this article we will analyze how NKE and TSLA did over the past week.
To determine which stocks had the most movement throughout the week, you can calculate the weekly percentage change and the weekly volatility of each stock. Here are two methods:
Weekly percentage change:
To calculate the weekly percentage change for each stock, you need to find the difference between the stock's closing price at the end of the week and the closing price at the beginning of the week. Then, divide that difference by the closing price at the beginning of the week and multiply by 100 to get the percentage change. The stocks with the largest percentage change will have had the most movement throughout the week.
Weekly volatility:
Another way to measure the movement of a stock is to calculate its weekly volatility. You can calculate weekly volatility using the standard deviation of the daily percentage changes in the stock's price for the week. The stocks with the highest weekly volatility will have had the most movement throughout the week.
Once you have calculated either the weekly percentage change or weekly volatility for each stock, you can rank them in descending order to see which stocks had the most movement throughout the week.
XLY Sector movement
The chart below displays the performance of XLY over the previous 2 weeks, with the blue shaded region indicating the week in which XLY was selected for trading. A table in the upper right corner of the chart has two gray shaded columns: KLFTMc, which represents the percentage change for the most recent week, and KL_FTMv, which represents the volatility for the same week. According to the table, XLY was within the middle range of percentage change and volatility for the past week. Additionally, the chart depicts XLY's percentage movement for the past week.
XLY — Blue shaded region in last week’s blog article
NKE movement
The chart below shows how NKE performed over the past 2 weeks. The blue shaded area is the prior week performance where we selected NKE to trade. In the upper right insert we have a table with two columns shaded in gray. The left column KLFTMc is this past week’s percentage change. The right column KL_FTMv is this past week’s volatilty. As the table shows, NKE was in the top third of the range in percent change and but bottom half in volatility. The chart also shows NKE’s percentage movement during the past week.
NKE — Blue shaded region in last week’s blog article
tsla MOVEMENT
The chart below shows how TSLA performed over the past 2 weeks. The blue shaded area is the prior week performance where we selected TSLA to trade. In the upper right insert we have a table with two columns shaded in gray. The left column KLFTMc is this past week’s percentage change. The right column KL_FTMv is this past week’s volatilty. As the table shows, TSLA was in the bottom third of the range in net percent change but in the top third in volatility. The chart also shows TSLA’s percentage movement during the past week.
TSLA — Blue shaded region in last week’s blog article
Summary
We used Logic Chain analysis to pick NKE and TSLA to trade this past week. Although NKE and TSLA were not the largest movers within the 10 holdings in XLY, they both had reasonable movements to support intraday trading during the week. We will also investigate other approaches to find the movers during the week.