When PowerRatings and TradingMarkets Indicators Combine
Each day, TradingMarkets publishes 7 Trading Ideas for Today,
which are based on our proprietary indicators.
Last Friday, we highlighted Cummins
(
CMI |
Quote |
Chart |
News |
PowerRating) as a potential trading
candidate. The stock had fallen more than 10% in 5 trading days, identifying it
as a stock trading at oversold levels.
Click here to view our Stocks 10% or Lower list for free.
PowerRatings (for Traders) also pinpointed the possibility of a move in the
next week, giving CMI a rating of 8. Our indicators often work together, because
our underlying philosophy is what defines each of our indicators and trading
systems.
Here, we have a situation where a strongly trending stock (up more than 100%
for the year) has jumped off the cliff, for whatever reason. The stock gapped
down, and the panic selling started, pushing the stock to extended, oversold
conditions, despite this stock’s underlying strength.
These opportunities are exactly what we look for in a trade. We see a strong
stock sell off in a panic situation, and that’s where the edge is. Over and
over, our historical data points to an edge, when a strong stock sells off to
oversold levels.
Use our indicator lists in conjunction with PowerRatings (for Traders), and
you will begin to see the underlying patterns emerge, over time through trade
after trade.
Cummins
(
CMI |
Quote |
Chart |
News |
PowerRating) currently has a PowerRatings (for Traders) of 4.
After being highlighted in our 7 Trading Ideas, and receiving a PowerRating (for
Traders) of 8, CMI rallied 8.86%. Not every trade has to be a home run. In fact,
going for broke each trade you make will leave you just that – broke.
