Stock of the Week: Buying the Selling in Popular Inc.
Strength in regional banks has provided traders and active investors alike with the
opportunity to trade to the long side or invest in what previously were some of the most beaten-down stocks in the
market.
For traders using PowerRatings to help find the best stocks to trade every day, a ratings
upgrade in Popular Inc. (NASDAQ: BPOP) signalled a potential opportunity in one of the less
known regional banks, but one that had begun to move toward levels were traders,
historically, have been more inclined to buy than sell.
Popular Inc., had traded lower for three days in a row when intraday weakness allowed
traders and active investors to take a position in the stock on the fourth day, as it traded
below the previous session’s close. The day of the fill, a Friday, the market for BPOP
traded significantly lower, again allowing traders plenty of room to take positions with limit
orders as high as four and a half percent (to learn more about trading stocks using intraday
weakness, click here.)
In this case, a moderate-to-aggressive limit order of 3% would have allowed traders to take a
position in BPOP near the stock’s lowest price on the day. And just one day later, shares of
Popular Inc. were rallying into strength and closing above the 5-day moving average.
Depending on the intraday entry strategy used, traders were able to lock in gains of 5% or
more in the stock.
Honorable mention for this week’s Stock of the Week goes to Valero Energy Corporation
(NYSE: VLO). Like BPOP, the trade in VLO was relatively quick, lasting only a few days.
Shares of Valero Energy pulled back in late March, earning “consider buying” ratings of 8 out
of 10, and then 9 out of 10 as the stock pulled back into technically oversold territory.
Intraday weakness allowed traders to get long VLO on March 23, and the stock was rallying
into strength only two days later after a gain of more than two and a half percent.
To learn more about trading stocks with intraday entry strategies, click here.
And to start trading stocks using PowerRatings, click the link below to start your
free, 14-day, no-obligation trial.
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