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The test results for PowerRatings for 2008 are in and again the top rated PowerRatings stocks outperformed the average stock over a 5-day period. In fact, despite a drop of approximately 35% in the S&P 500, a stock with a PowerRating of 8, 9 and 10 again showed positive returns for a 5-day hold.
Here are the stock rating results.
For the year, the average gain for all stocks in the testing universe (almost 3,000 of the most liquid stocks, or 2,976 stocks as of 3/23/09) over any 5-day period was -.73%.
For a stock with a PowerRating of 8, 9, and 10, the average gain over 5 days was 1.99%.
If you exited the 8’s, 9’s and 10’s at the suggested close above the 5 period ma, the average gain per trade rose to 2.87 %!
And if you bought these higher PowerRatings stocks on limit orders 3% below the previous day's close and exited above the 5-day moving average, these stocks rose 5.39%. Buying the higher ranked PowerRatings stocks on limit orders of 7% and exiting above a close of the 5-day moving average took the average gain per trade up to 10.74%.
For those of you who short stocks, stocks with the lowest PowerRatings of 1 again did their job, losing 2.79 % over 5 days (meaning the shorts gained 2.79%).
Shorting these stocks and exiting them on closes under the 5-day moving average took the gain on the short side to 3.01%. Shorting these stocks on suggested limits of 3% above the previous day's close and exiting above the 5-day moving average took the results up to + 5.08% per trade.
2008 was one of the worst years ever for stocks. But PowerRatings stocks did their job again outperforming both on the long side and on the short side. This now makes 14 consecutive years of outperformance for PowerRatings stocks.
If you want to apply the best PowerRatings stocks to your trading each day, click here to begin your free trial now!
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