5 PowerRatings Needles in the Haystack

Locating stocks primed for gains remains the ultimate goal and challenge for short term traders. Regardless of the underlying market conditions, be they brutally, bearish or impossibly bullish, this market fact remains accurate. Most of the methods investors use to locate these needles in the haystack are based on untested and unproven methods that have been part of Wall Street’s lore for many generations. Buying new highs is one such fanciful system.

Investors keep falling for it despite questionable results. In fact, this dubious method has been proven time and time again to possess no edge whatsoever. It is one of many “feel good” strategies that have peer support among traders. Truth is, peer support does not equal winning trades. Investors need proven methods to guide their research to locate stocks primed for short term gains.

Our Stock PowerRatings is one such proven stock picking tool. They are built upon the study of 8.5 million daily trades from 1995 to 2006. It is a ranking system of 1 through 10 with 1 representing the worse performers and 10 being the best performers. The system gauges stocks probability of outperforming against the S&P 500 over a 5 day period. Statistics clearly show that 1 rated stocks perform 5 times worse than the S&P 500, while 10 rated stocks outperformed 14.7 times the S&P 500 during the next 5 trading days.

As you know, past performance is no guarantee for future success, but our PowerRatings have proven time and time again to locate stocks primed for short term gains.

Here are 5 top PowerRatings Stocks for your consideration:

Steak N Shake ^SNS^

NutriSystem ^NTRI^

NTRI chart

Athersys ^ATHX^

National Beverage ^FIZZ^

Hertz Global ^HTZ^

Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14.7 to 1 after five days! Click here to launch your free PowerRatings trial today!

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David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.