Stock Scanner Standout
Using the TradingMarkets.com 3-month relative strength ranking can help a
great deal when presented with a potential News Reversal. Why? Because the stock
has a higher likelihood of shaking off bearish news.
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09:53:48
Hotels.com (ROOM)
gapped lower at the open and now has reversed to trigger a news reversal. ROOM
is trading at 49.58 down .50.
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On Monday, travel stocks gap lower on fears of lower business after this
weekend’s car bombing in Bali. When the stock trades back through Friday’s low,
the NR is triggered, with the stock running 2 1/2 points higher intraday. A quick
peek with the
Stock Scanner verifys the stock has a
3-month
relative strength rank of 91 from TradingMarkets.com.
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Normally, we post the 3-month RS
ranking when we do swing trading setups, since we have more time. Since we don’t
have that luxury on intraday setups, I suggest keeping a browser open to the
Stock Scanner to use to scan stocks quickly. Look for an RS of 80-99 for a long
setup, and from 1-20 for a short setup. These and the strongest and weakest
stocks over the past 90 days, and will provide you will a good indication of the
likely success of a particular setup.
Until tomorrow,
Duke