Jupiter, FL (PressExposure) November 17, 2008 -- A new trading indicator, Sigma, developed by Four Sigma Trading shows companies in education services were outperforming all other groups recently. Sigma shows how normal the current stock price is by measuring the standard deviation of the recent stock price movements.
"Sigma is an oscillator that normally falls between -2 and 2 for a typical stock with the majority of the market hovering around an expected -1 to 1 "normal" level. When things start going too far negative or positive, we know something abnormal is happening with the stock and it's time to take notice" said Jim Snyder.
In this dark and gloomy time in the market, every industry currently has a negative sigma on average although there are still some bright spots that are worth looking into. Education services contains companies like Capella Education Company, Apollo Group, and DeVry, Inc., which have all jumped to positive territory as of late.
Why are these stocks performing well? It seems the education market might be counter-cyclical to unemployment rates as more adults may be enhancing their skills in a weak job market.
"If you average all of the sigmas in the market right now, you get an average of -2.55 which is incredibly low," says Jim Snyder. "Looking at individual industry groups, those in discount retailing and some banking sectors are beginning to recover."
Stocks making high Sigmas could be takeover targets, launching new products, or gaining attention from some larger players in the market. Either way, high Sigmas are flagged by Four Sigma Trading for further investigation. Find out more at FourSigmaTrading.com or read the Four Sigma Trading blog at foursigma.blogspot.com.