Combine TradingMarkets Research Tools to Find Winning Trades
Today we’re going to select a TradingMarkets Indicator list, and keep it open
to the public over the weekend, free of charge.
TradingMarkets subscribers have access to
16 quantitative
stock indicators and another
17 quantitative market bias indicators. These indicators are derived from
our proprietary database that includes millions of trades, and designed to give
you a short-term trading edge.
Today, let’s look at the
Stocks Down 10% or More list. These are stocks that have lost 10% or
more over the past five days and are trading above their 200-day moving average.
Our research shows that stocks trading above their 200-day moving
average that have lost 10% or more over the past five days have shown positive
returns, on average, 1-day, 2-days and 1-week later. Historically,
these stocks have provided traders with a significant edge.
Click here to view today’s list for free.
One of the basic underlying concepts of all TradingMarkets strategies is “buy
weakness, and sell strength.” A stock that has declined more than 10% in 5
trading days is overextended to the downside. By falling that far in that short
amount of time, stocks on this list are trading at levels which have
historically led to a short-term bounce. We have run literally millions of
trades through our historical database, and the results clearly point to this
tendency for stocks to revert to their mean conditions.
Last Friday (9/21), iRobot was featured on 7 Trading Ideas for Today, as the
potential trading candidate from this list. Two weeks ago, iRobot announced
losing a crucial military contract with the U.S., which led to a 1-day loss of
nearly 25%. After that kind of drop, this stock was trading in oversold
territory, and rallied through the week to recover some of those losses.
iRobot
(
IRBT |
Quote |
Chart |
News |
PowerRating) currently has a PowerRating of 3. Notice how after
a strong rally, a stock’s PowerRating (for Traders) will decline on account of
overbought conditions, lending this stock a bearish edge. On the day of the
rally, IRBT had a PowerRating (for Traders) of 8, also indicating a distinct
historical bias to the upside. IRBT rallied 13.7% in just 5 days, after
triggering a number of our key indicators.
