Short-Term Trading Opportunities
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter these trades with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
Cardiome Pharma (NASDAQ: CRME) has a PowerRatings of 8 heading into today’s trading. This stock had one of the largest daily PowerRatings changes, moving up from 5 the day before. In the past, buying stocks with a rating of 8 on a 5% pullback the next day and selling five days later has delivered wins 72% of the time. The average winner has gained 3.9%. Other entries and exits also show high winning percentages and large average gains.
CRME is a speculative biotech company with only one marketable product used to heart problems that has recently been approved for use in Turkey and South Africa. The company also announced agreements to commercialize that drug in Columbia and Cypress within the past month. Analysts expect CRME to continue losing money for at least the next year so this is a high risk position for the long-term but PowerRatings has identified a short-term long trading opportunity in the stock.