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For more information, view the manual.

StockQP Analytics is an advanced and specialized research tool. It has existed in several forms for more than half a decade, having been used exclusively in technical research capacities with significant success. Technical software analysis of stocks. It is designed and built around one important question.

"If a stock is down X consecutive days and Z percent over those days, should you buy and hold for Y days?"

This question may be better described as a mathematical theory. It is as follows: Given company C with market cap ~$100 billion whose stock goes down a significant percentage on any arbitrary day of trading, it is more likely to go up than down over the following days of trading. The most straightforward explanation for this is:

"If a highly-valued company is going to 'stick around' for the foreseeable future and remain somewhere in the neighborhood of its current market cap and its stock price drops a significant percentage, it is more likely than not to rebound than it is to continue decreasing."

This may seem counter-intuitive because the generally accepted idea is that the market is completely chaotic. Many believe that on any given day, any arbitrary stock is as likely to go up as it is to go down. However, the logic in the following paragraph may serve to convince one otherwise.

Given that a company C is going to survive and maintain a significant market share, then it can be considered impossible that its value will reach or even approach zero. In fact, the closer its stock price gets to zero, given roughly the same market cap and market share, the more out-of-whack its P/E ratio becomes. In order to maintain a relatively market-acceptable P/E ratio, the stock is going to tend to go upwards after a downward drop. In general, the closer company's stock comes to zero, the more likely it is to rebound.

For more information, view the manual.