Read Larry Connors' blog – Short Term Trading Strategies
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Often, many of the highest PowerRatings stocks do not arrive with the greatest public relations. Despite their ability to outperform the average stock by margins of as much as 14 to 1 after five days, many of these stocks are relatively unknown to the investing and trading public. Every now and then, I’m surprised to see among the 8s, 9s or 10s a company that I didn’t even know was publicly traded!
Little chance of that in today’s 5 PowerRatings Stocks for the Next 5 Days column. With a number of high profile stocks having rallied above and now in the process of pulling back toward their 200-day moving averages, some of the stocks that are perennially in demand are now on sale.
The first three have PowerRatings of 8. Recall that stocks with PowerRatings of 8 have outperformed the average stock by a margin of more than 6 to 1 after five days.
Coca Cola (KO | Quote | Chart | News | PowerRating) lost more than 1% on Wednesday, breaking down to new short-term lows above its 200-day moving average. The stock had been range-bound for the past several days.
Although off its lows by the end of trading on Wednesday, Apple Inc. (AAPL | Quote | Chart | News | PowerRating) continues to close lower, helping drive the stock’s 2-period RSI down toward the single digits. Wednesday’s close represents the lowest since June 2nd.
Chicago Mercantile Exchange (CME | Quote | Chart | News | PowerRating) lost more than 1.5% on Wednesday, but has not yet broken down below its short-term trading range. Further declines – including a breakdown from the range – may be what it takes to get CME’s 7 rating to 8 or higher.
For tips on how to trade high PowerRatings stocks, read Larry Connor’s special report: How to Find the Best Stocks to Trade Every Day.
The next two stocks have PowerRatings of 7. 7-rated stocks, although beating the average stock by a margin of 3 to 1 after five days, have been outperformed by higher rated stocks (the 8s, 9s, and 10s). But because they are among the most widely owned U.S. stocks, I thought it would be worth our while to start paying attention to them now in the event that they pull back further and, potentially, earn PowerRatings upgrades.
Re-visiting short term lows from Monday, shares of McDonalds (MCD | Quote | Chart | News | PowerRating) came within a $1 of their 200-day moving average on Wednesday. MCD made its lowest closing low of June.
Like traders in Apple, buyers are keeping Google (GOOG | Quote | Chart | News | PowerRating) from closing at its lowest during recent down days. But sellers have still been in control for the past four trading days as the stock topped on June 5th.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
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Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
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