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The following list to the left are some

high beta stocks you can watch and see

how they move relatively to the market

HIGH BETA STOCKS EXPLAINED

What is High Beta

Beta is an indicator used by traders to measure the relative volatility of a stock compared to the broader market.

The common practice is to use the S&P500 as a reference to the broader market and divide the average fluctuation of the stock relative to the S&P500.

For example, a stock with a 1.5 beta moves on average x1.5 for every S&P500 move. If the S&P500 gains 10%, the stock with a 1.5 beta gains 10 x 1.5 = 15%.

On the other hand, if the S&P500 drops by 10%, the stock drops by 13%. This means that the stock is a high risk high reward.

If the general market drops, the stock plunges more; if the general market is rising, the stock could potentially outperform.

Warnings About Beta

The biggest drawback to using beta to make an investment decision is that beta is a historical measure of a stock's volatility.

It can show you the pattern so far but it can't tell you what's going to happen in the future.

Here is a basic guide to beta levels:

Beta of 0. Basically, cash has a beta of 0. In other words, regardless of which way the market moves, the value of cash remains unchanged (given no inflation).
Beta between 0 and 1. Companies with volatilities lower than the market have a beta of less than 1 but more than 0. Many utility companies fall in this range.
Beta of 1. A beta of 1 means a stock mirrors the volatility of whatever index is used to represent the overall market.
If a stock has a beta of 1, it will move in the same direction as the index, by about the same amount.
Usually an index fund that mirrors the S&P 500 will have a beta close to 1.
Beta greater than 1. This denotes a volatility that is greater than the index.
Many new technology companies have a beta higher than 1.

HERE ARE SOME HIGH BETA STOCKS:

PRICES AS OF CLOSE 5/1

WPX ENERGY (WPX) $5.53 BETA 3.66

CONTINENTAL RESOURCES (CLR) $14.21 BETA 3.55

DEVON ENERGY (DVN) $11.15 BETA 3.43

MURPHY OIL (MUR) $10.37 BETA 3.28

MARATHON OIL (MRO) $5.50 BETA 3.45

CORE LABS (CLB) $17.51 BETA 3.06

PDC ENERGY (PDCE) $11.28 BETA 2.94

BOOT BARN (BOOT) $18.04 BETA 2.91

STITCH FIX (SFIX) $15.49 BETA 2.83

MAGNOLIA OIL (MGY) $5.82 BETA 2.68

NAVISTAR INT’L (NAV) $23.10 BETA 2.58

RED ROCK RESORTS (RRR) $9.86 BETA 2.57

DELPHI TECH (DLPH) $9.56 BETA 2.55

WYNN RESORTS (WYNN) $80.83 BETA 2.52

XPO LOGISTICS (XPO) $64.33 BETA 2.52

ROYAL CARIBBEAN (RCL) $40.77 BETA 2.48

MARRIOTT VACATIONS (VAC) $76.79 BETA 2.44

RESTORATION HARDWARE (RH) $137.46 BETA 2.39

BED BATH BEYOND (BBBY) $5.64 BETA 2.38

52 week price Strategy

What is the 52-Week High/Low Technical Indicator all about:

Basically, the 52-week high/low is the highest and lowest price at which a security (stock), has traded during the time period that equals one year. A 52-week high/low is a technical indicator used by many traders who view these numbers as an important factor in the analysis of a stock's current value and as a predictor of its future price movement.

An investor may have interest in a stock as its price nears either the high or the low end of its 52-week price range (the range that exists between the 52-week low and the 52-week high).

The 52-week high/low is based on the daily end of day price for the security. Many times, a security may hit a 52-week high intraday but will end up closing below the previous 52-week high, thereby going unnoticed.

The same applies when a security makes a new 52-week low during a trading session but fails to close at a new 52-week low.

So, the failure to make a new closing 52-week high/low can be very significant on a technical basis.

Many traders use the 52-week high/low numbers to figure out what entry/exit price to use for their position.

For example, some traders may buy a stock when the price exceeds its 52-week high or sell when the price falls below its 52-week low.

The reasoning behind this strategy is that if a stock price breaks out from its established 52-week range (either above or below), there must be some factors that created momentum to continue the price movement in the same direction up or down.

A new high is a powerful buy signal that usually attracts investors to continue to drive the stock higher though our instinct is not to buy stocks at its high.

A study done, called "Volume and Price Patterns Around a Stock's 52-Week Highs and Lows: Theory and Evidence," conducted in 2008, by 3 economist who researched both small stocks and Large stocks crossing their 52-week highs.

Small stocks crossing their 52-week highs produce 0.6275% excess gains in the following week
Large stocks crossing their 52-week highs produce 0.1795% excess gains in the following week
Small stocks crossing their 52-week highs produce 1.8963% excess gains in the following month
Large stocks crossing their 52-week highs produce 0.7035% excess gains in the following month

NOTE:

The data suggests that an exploitable trading strategy would be to buy small cap stocks as they cross above their annual 52-week highs.

What to look out for:

52-Week High/Low Reversals

A 52-week high represents bullish sentiment in the market. There are usually plenty of traders prepared to give up some further price appreciation in order to lock in some or all their gains.

Stocks making new 52-week highs are often the most susceptible to profit taking, resulting in pullbacks and trend reversals.

A stock that reaches a 52-week high intraday, but closes negative on the same day, may have topped out. This means that its price may not go much higher in the near term.

This occurs when a security trades significantly higher than its opening but declines later in the day to close either below or near its opening price.

Similarly, when a stock makes a new 52-week low intra-day but fails to establish a new closing 52-week low, it may be a sign of a bottom.

This occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or near its opening price.

Dividend Capture Strategy

The dividend capture strategy is designed to allow income-seeking investors to (Buy)/hold a stock just long enough to collect its dividend.

While this strategy is simple, it can be a challenge to correctly apply in many cases.

A dividend is a periodic cash payment that stockholders receives from owing the stock, which represents their share of the issuing corporation’s current profits.

Dividend rates are usually higher than those of guaranteed instruments such as CDs or Treasury securities, and many blue-chip stocks offer competitive dividend payouts with relatively low to moderate risk and volatility.

The Four important dividend dates you must know:

Declaration Date – This is the date upon which the board of directors of the issuing corporation declares that a dividend will be paid. The declaration will specify the amount of the dividend as well.

Ex-Dividend Date – The day the stock price is accordingly reduced by the amount of the dividend. Investors must buy a stock before the ex-date to receive the dividend.

Date of Record – The day a company looks at its records to determine shareholder eligibility.

Pay Date – The day the dividend is actually paid to the shareholders.

How the Dividend Capture Strategy Works:

Now that you know the dates the actual strategy is quite simple.

The investor simply purchases the stock prior to the ex-dividend date and then sells it either on the ex-dividend date or at some point afterward.

Because the investor owned the stock on the ex-date, the dividend will automatically be paid regardless of whether the investor still owns the stock by the time it’s really received.

Investors purchasing the stock on the ex-dividend date do not receive the dividend, the price of the stock should theoretically fall by the dividend amount.

Example: We have (DIS) Disney Corp that pays a $1 dividend. Prior to the ex-dividend date, DIS trades at $100 per share.

On the ex-dividend date, XYZ should theoretically be trading at $99. Now say that Disney is trading at $100 per share prior to the ex-dividend date.

An investors purchases Disney during this time, then sells the stock on the ex-dividend date when it is trading at $99.75.

The investor collects the $1 dividend a few weeks later, resulting in a total return of $0.75.

Advantages/Disadvantages Dividend Capture Strategy:

The greatest advantage of using this strategy to capture dividends is that there are thousands of dividend-paying stocks to choose from, with some paying higher dividends than others.

By having the opportunity of buying stocks the day before the ex-date each day, theoretically one could capture a dividend every trading day of the year in this manner.

The major disadvantage is that the stock exchanges automatically negatively adjust the stock’s price on the ex-dividend date to reflect the upcoming payout.

So, if Disney (DIS) will pay a $1 dividend, its share price will open on the ex-dividend date about $1 lower.

This fact makes capturing dividends a much more difficult process than many people initially believe.

Another disadvantage is the loss of Favorable Tax treatment

There is a type of dividend known as a “qualified” dividend that is eligible to receive capital gains treatment of 15% instead of being reported as ordinary income by the recipient.

For it to be a qualified dividend you have to own the shares for more than 60 days of the holding period.

Also the dividends must have been paid by a U.S. corporation or a qualified foreign corporation.

Lastly, the market volatility can work in either direction.

Most investors are counting on the stock price to not fall by the entire amount of the dividend due to external market forces.

Here are a few stocks that you can watch for next week.

Div. Record date Ann date Record date Ex-date Pay date

Abbvie (ABBV) $1.18 4/15 2/20 4/15 4/14 5/15

Activision(ATVI) $0.41 4/15 2/06 4/15 4/14 5/06

The following stocks above must be purchased before the close of the market

Monday April 13th in order to be eligible to receive the dividend. Watch market

Action the following day on ex-dividend date, which at any point you can sell the

security.

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