Is Choicepoint Treading on Thin Ice?
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.
There are 8 bullish and 8 bearish stock indicators, providing trading ideas for
both rising and falling markets. When used in conjunction with the market bias
indicators, traders can potentially achieve a substantial edge.
Once a week, we provide free open access to one of these proprietary stock
indicators. If you would like to access all 16 stock indicators, 17 market bias
indicators, along with many other tools, click here for a free
focus list
that comes from our
5+ Consecutive Higher Highs list, which will be available until around 1 PM
Monday afternoon.
These are stocks that have made a higher high for five or more consecutive
days and are trading below their 200-day moving average. Our research
shows that stocks trading below their 200-day moving average that make higher
highs for five or more days have shown negative returns, on average, 1-day,
2-days and 1-week later. Historically, these stocks have provided
traders with a significant edge. To learn more about our research into stocks
that make five or more consecutive lower lows, and how to use this information,
click here.
Let’s take a closer look a chart from the list above. Keep in
mind that this is only one example from the indicator list, and that we are not recommending a trade
in this particular stock. Traders should always create individual focus lists
and radar screens based on their own information and trading strategies, instead
of blindly following other people’s recommendations.
Choicepoint
(
CPS |
Quote |
Chart |
News |
PowerRating)
Checkpoint (CPS) is trading below its 200-day moving
average, in a confirmed downtrend. Simply stated, this stock has lost more over
the past 200 days than it has gained. By technical definition, this is a weak,
downtrending stock. The TradingMarkets mantra is to “buy weakness, and sell
strength,” and that is what we would be looking to do here. Our database of
literally millions of trades proves that an edge to the short side exists when a
weak stock rises to extended, weak levels. After making higher highs for 6
straight days, it’s clear that this stock is trading at extended levels. As the price per
share of CPS becomes more and more extended to the upside, the bearish edge
continues to grow.
You can find the full list
here. Also, Check out our
latest quantified research articles
here. If you don’t already have a TradingMarkets subscription, click here
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and develop your own watchlist of stocks with historically-backed edges.
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