• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / PowerRatings / Questions About Questcor Lead to Another Oversold Market Leader

Questions About Questcor Lead to Another Oversold Market Leader

March 1, 2014 by TradingMarkets Editors

Some of last year’s biggest winners have been selling off over the past several weeks and providing potential buying opportunities. Questcor Pharmaceuticals (NASDAQ: QCOR) is the latest stock to pull back after recording large gains in the bull market. QCOR gained more than 1,800% since 2008 and more than doubled last year.

The company derives almost all of its sales from a single drug that is used to treat multiple sclerosis. This week, a research firm raised questions about the quality of the drug being produced and QCOR fell more than 23% from Monday’s close to Friday’s close. The stock will head into trading next week with a PowerRatings of 10.

qcor

PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 8 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.

In the past, buying stocks with a rating of 10 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 5.9%. Other entries and exits also show high winning percentages and large average gains.

TradingMarkets Analytics provides access to indicators including ConnorsRSI and historical volatility along with information about average returns for different time periods. In the chart below, we can see than the four-day loss in QCOR is more than two standard deviations below the average four-day performance.

QCOR is a volatile stock with a 100-day historical volatility of 56.23, five times the level of volatility for SPDR S&P 500 ETF (NYSE: SPY). Volatile stocks make excellent short-term trading candidates because they can deliver large moves in a short amount of time.

At TradingMarkets Analytics we can also see that QCOR is oversold with a ConnorsRSI reading of 5.38. A trading strategy based on persistent weakness in ConnorsRSI is detailed in The Advanced ConnorsRSI Trading Strategy for ETFs. In back-testing, entering trades on a 3% pullback after the setup has been completed delivered an average gain of 6.89% and had a winning percentage of 84.67%. These trades are closed when the ETF closes above its five-day moving average. QCOR meets the setup conditions for this strategy and should be considered a buy on additional weakness.

For a free trial to PowerRatings, click here!

All data is as of the end of day on 2/28/2014.

Filed Under: PowerRatings Tagged With: stock trading

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in