Surprising Discoveries: 3 Stocks To Watch

  • August 24, 2009
  • David Goodboy

The old adage, “buy low, sell high” is heard wherever investors and traders gather.  It is one of those Zen-like, feel-good statements that makes sense until you try to actually put it into practice. 

What exactly is low? How do you know that price will not keep going lower? The truth is, no one really knows for sure if each stock entry will be successful.  However, there are ways to place the odds of success firmly in your corner. 

We have conducted extensive studies since 1995 to determine what works and what doesn’t work when it comes to picking stocks most likely to gain in the short term and our findings may surprise you.   Did you know that short term gains are more likely after a stock falls five days, 5%, 10% or makes five lower lows in a row? 

Our extensive studies also indicate that gains are more likely after a 5% or even 10% gap down rather than after a dramatic gap up. 

While these statements have proven to be true time and time again there is one simple overriding criteria that is 100% a must prior to using these surprising findings.  The criteria is that the stock MUST be trading above its 200-day Simple Moving Average prior to going long.  Below the 200-day Simple Moving average, none of these discoveries hold water on the long side.

Here are 3 stocks that fit what we discovered for your watch list:

Cyberonics
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PowerRating): 5 plus consecutive down days, RSI (2) 1.28, Short Term PowerRating 8.

Poniard Pharmaceuticals
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PowerRating): more than 5 consecutive down days, RSI(2) 1.99, Short Term PowerRating 9.

UQM Technology
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UQM |
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PowerRating): Down 10%, RSI(2) 7.90, Short Term PowerRating 9.

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Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the “5 Secrets to Successful Stock Investing” today!

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.