One of our TradingMarkets Daily Market Bias indicators is called the VIX Alert. This indicator, like all the indicators in our Daily Market Bias department, can be used by traders to determine whether or not there is a directional bias in the next day’s trading.
Here’s a good news/bad news scenario for you: a stock has moved up strongly, 10% or more. That’s the good news.
But for all that movement, the stock is still below its 200-day moving average. That’s the bad news.
And here’s the question: over time, are stocks in this sort of good news/bad news scenario, good buys or good sells?
Futures Point to Brutal Open…Oil Teases $100 (Again)…Credit Crunch Continues…S&P Financial Worst Since 94…Countrywide Denies Bankruptcy Rumors…Hip Retailers ANF, GPS Report…Fed Lowers 08 Growth Forecast…Traders Bet On More Rate Cuts…
Wednesday list includes: Abercrombie & Fitch, Whole Foods Market and FootLocker.
More and more traders are coming around to the idea that it is better to buy stocks that are GOING to go up, than it is to buy stocks that have ALREADY gone up.
Number 10 in our PowerRatings (for Traders) Strategy Guide is the simple admonition to consider technology stocks when looking for sources of growth in the stock market.
When people typically refer to top stocks, what they really mean are stocks that are spiking, rising strongly right now or, worse, were rising strongly a minute, an hour, a day, or a week ago. The traditional financial media is often the worst about this kind of thing, telling would-be investors everything they want to know about the stocks they should have bought at the beginning of the trading day or week.
Catch a technical analyst by the tail and ask him or
her to show you some charts, and there’s a pretty good chance that the RSI will be plotted in one of the panels above or below the price chart.
What is the only thing better than a stock that begins the day with a PowerRatings (for Traders) rating of 10? How about a stock that begins the day with a PowerRatings (for Traders) rating of 10 that remains a 10 all day long?
When it comes to trading, we believe that there are three key fundamentals that every trader must learn, understand and master in order to be consistently successful in the markets.