Swing Trading with PowerRatings: Short Term Gains in Top-Rated Stocks
This week’s PowerRatings Model Trade of the Week is ^ENSG^.
Shares of ENSG earned PowerRatings of 8 on June 29th and, one day later, the stock was further upgraded to PowerRatings of 9.
The entry and exit rules for the PowerRatings Model Trade of the Week are published in Larry Connors’ seminal article on swing trading with PowerRatings. You can read that article at the link below:
The PowerRatings Model Trade of the Week will feature only stocks rated 9 or 10, and will use both the 3% limit order entry and the 5-day simple moving average exit.
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Taking a look at the stock, a 3% limit order entry would have allowed swing traders to get long ENSG on July 1. Note that by this time, ENSG has earned top PowerRatings for three days in a row and PowerRatings of 9, our second highest rating, for two days in a row.
Within two days, shares of ENSG had bolted higher. And by the time the stock had closed above its 5-day moving average on Wednesday, July 6, ENSG had gained well over 8%.
To learn more about swing trading stocks using PowerRatings, click here to launch your free, 7-day trial to PowerRatings today!
David Penn is Editor in Chief of TradingMarkets.com