Irrational Investor Behavior Data Used To Predict Short-Term Stock Price Movements.

Business Editors

NORTHBROOK, Ill.--(BUSINESS WIRE)--April 25, 2002

A new understanding of why and how investors behave irrationally in the context of stock market investing is now being used to accurately predict short-term (over the next several days) future stock price movements. As of April 12, 2002, trading strategies based on this information have outperformed the S&P 500 Index by 29.3 percent over the past 12 months, and by an astounding 8,090 percent over the past five years, before factoring in transaction costs.

An algorithm, created by Dr. David Schimel, has been developed that measures investor behavior in reaction to daily changes in stock prices. Dr. Schimel is president of International Equity Trading Partners (IET), a Northbrook, Illinois-based financial services company. IET is employed by banks and hedge funds to create extraordinary returns by timing the stock market on a short-term basis. IET's trading strategies have been consistently profitable and have substantially outperformed the markets for each of the past five years. Dr. Schimel is also president of TradingGains.com, LLC, an Internet-based provider of daily predictive rankings of short-term price movement on actively traded stocks.

According to the popular Efficient Market Theory, stock price variations are random and, as such, are not predictable. However, it is now known that collective investor reactions to nothing more than daily stock price changes create a powerful Behavioral Force, which affects the direction of short-term future stock price movements. Using Dr. Schimel's model, Behavioral Force measurements are now being harnessed to generate daily Relative Performance Rankings(TM) for more than 1,200 actively traded stocks, making possible accurate predictions of price movement. Daily rankings are available on a subscription basis over the Internet at www.TradingGains.com. A 30-day free trial subscription is being offered for a limited time.

Dr. Schimel has written a 3,500 word general interest article in which he discusses his model and explains the Behavioral Force phenomenon. The manuscript is available as a reporter's source document. Written permission is required for any verbatim publication. Dr. Schimel can be available for a telephone interview to answer questions regarding his findings.

To request the paper and/or arrange an interview, please contact Richard L. Kaye at 847-564-8860 or via e-mail: [e-mail].

The article as set forth and views expressed in the article are solely those of Dr. Schimel and are not intended as investment recommendations or investment advice.