The Biggest Upgrades: 3 Companies on the Verge
Stocks are experiencing a stunning reversal of fortune in the early going. Better than expected economic data lifted futures and the cash market at the open. However, the Chicago PMI missed analysts estimates knocking the major indexes dramatically lower in the first 30 minutes of trade. Â This is a classic example of how difficult it is to call the market as a whole, even on the very short term.
Active stock traders need proven tools to keep help them locate stocks that are most likely to outperform over the short term, regardless of underlying market conditions.  For the purposes of this article, I am defining short-term as less than 5 days. Our Stock PowerRatings are one such proven tool. Developed over the last 14 years of extensive research and proven in actual practice, they clearly place the odds of short term success in your favor. Stocks earning an 8 rating have shown to outperform the average stock at a 5.8 to 1 margin.
Those with a 9 rank outperform at a 10.1 to 1 margin and the highest ranked stocks with a 10 Stock PowerRating outperform at 14.7 to 1 margin. There are multiple ways to use the Stock PowerRatings as a stock trading tool. One way is to focus on those stocks that have experienced the largest daily gains in the rankings. Particularly, those companies that move higher by 2 or more levels and are above 7 on the day they are considered. The simple rule is the larger the Stock PowerRating change to the upside, combined with today’s higher ranking; the better the stock has performed over the next week. Here are 3 companies that fit the upgrade criteria today:
Quantum Fuel Systems
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Vail Resorts
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Verichip Corp
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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 to 1 after five days! Click here to launch your free PowerRatings trial today!
David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.