Combine PowerRatings with NASDAQ 100 Stocks
Today’s
PowerRatings article will focus on stocks with high PowerRatings from the
NASDAQ 100.
The NASDAQ Composite Index is up 2.01% year-to-date leading the major indices. Â
PowerRatings performance shows the returns versus
the S&P 500 for the equivalent 5-day hold. The stocks which have had a PowerRating of 8 have outperformed the S&P 500 index on average over the next 5
days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a
10.1-1 margin. Stocks with a PowerRating of 10 have outperformed the S&P by
nearly 14.7-1 margin. This potential edge opens up a number of possibilities for
your trading and investing.
One more interesting fact about the
PowerRatings; PowerRatings of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings stocks.
The following charts are stocks with a PowerRating of 7
or higher. Historically, stocks
with similar ratings have had an upward bias over the next 1 to 5
days. While this is not a prediction, you may want to follow the price action
of these stocks in the coming days.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating)
Lincare Holdings
(
LNCR |
Quote |
Chart |
News |
PowerRating)
Sepracor
(
SEPR |
Quote |
Chart |
News |
PowerRating)
Â
As you can see, these stocks have all sold off
recently. This is a unique situation where fear overcomes the public and
they sell. Once this oversold situation reaches a saturation point, market
makers and specialists (i.e. smart money) help to push the stock back up over
next 1 to 5 trading sessions. Our historically backtested PowerRatings
help you to identify points where a selloff may be unsustainable and where a
reversal to the upside could take place.Â
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding.
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Darren Wong
Associate Editor
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