This Pullback Worked for SIGM; What About LVS?
The
PowerRatings (for Traders) Preferred list presents an opportunity for
short-term traders to trade stocks that are popular with hedge funds and major
mutual funds. These are stocks with a high potential to make big moves over a
short period of time. Because these stocks are rising so quickly, they often
experience pullbacks to some degree. PowerRatings (for Traders) are geared
towards finding pullbacks, and growth stocks provide a great opportunity for a
stronger snapback. The underlying strength of growth stocks often lead to a more
powerful reversion, because the stock is already moving so strongly in one
direction; the pullback will often be a precursor to another leg-up.
Here is a screenshot of today’s PowerRatings (for Traders) Preferred List:
The first thing you should notice is that there aren’t that many stocks on
this list. The major indexes had a sizeable rally on Friday, decreasing the
number of stocks with a high PowerRatings (for Traders). Remember, a stock’s
PowerRating usually increases as it falls, because the stocks is more inclined
to bounce after extended losses. Conversely, when the markets gain, a stock’s
PowerRating will usually decline.
Las Vegas Sands
(
LVS |
Quote |
Chart |
News |
PowerRating) has a PowerRating (for Traders) of 7. LVS
rose a full 100% since the end of June, so this stock’s momentum cannot be
questioned. After breaking $145 a share earlier this month, LVS is now trading
about 10% off its highs. This stock is a prime pullback candidate.
One week ago today, Sigma Designs
(
SIGM |
Quote |
Chart |
News |
PowerRating) was featured on the
PowerRatings (for Traders) Preferred List with a PowerRating of 10. Over the
next five days, SIGM rallied nearly 11%.
In conclusion, PULLBACKS WORK!!
Use PowerRatings (for Traders) to gain a quantified short-term edge. The
Preferred List will also help point you towards explosive growth stocks that are
on the Institution’s watch lists.