4 Top PowerRatings Stocks for Traders: YHOO, SVNT, PPDI, PDC
Are you looking at the moon, or the finger?
There’s an old saying that when a person points at the
moon, only a fool looks at the person’s finger.
It’s a fancy of way saying: keep your eyes on the prize, on what really
matters. And being able to keep your eyes on what really matters when it
comes to trading can make all the difference between success and failure.
Consider this. A market has been bumping along its
lows for several weeks, some days a hopeful rally, some days a disappointing
correction. Then, suddenly, the market takes a plunge, moving swiftly
toward its year to date lows. Will the market breakdown to new
year-to-date lows? Will the market bounce?
This, as far as the short-term stock trader is concerned, is a classic case of
looking at the finger.
When a market that has fallen below its 200-day moving average is set to
test its year-to-date lows, veteran traders know that the real action, the real
focus of attention should be on those stocks that are moving toward potential
support. And not just any stock that is moving toward potential support.
Rather, the object of attraction should be those strong stocks, those stocks
that have not yet broken down. These are the stocks that are more likely
to pass their tests of support and rebound to move higher in the next few days.
Our Short Term PowerRatings
actually seek
to find out these stocks everyday. We researched short-term stock behavior, in
a process that involved millions of simulated trades, from 1995-2007. This
study, which considered factors such as volume, trend, volatility and momentum,
allowed us to rate stocks on a scale of 1 to 10.
Those stocks at the lowest end
of the spectrum, the stocks with Short Term
PowerRatings
of 3, 2, or 1 have
dramatically underperformed the average stock over the next five days. Those
stocks at the highest end of the spectrum, the stocks with Short Term PowerRatings of 8, 9 or 10, have outperformed the average stock over the next
five days by an overwhelming margin.
Traders who use opportunities like these, when the markets are testing
year-to-date lows, to search out strong stocks that are retreating to potential
support, often position themselves to be well-rewarded when markets turn up- even
for short, reactive bounces. For the savvy stock trader, a dead-cat bounce
in the broader market often means a strong move higher in those stocks that have
been trending higher, but have suffered from temporary selling pressure.
Here are four stocks that meet these
qualifications. All have Short Term
PowerRatings
of at least 8, which means
that according to our research, these stocks belong to that class of stocks that
have outperformed the average stock by more than 8 to 1 over the next five days.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8
Savient Pharmaceuticals
(
SVNT |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8
Pharmaceutical Products Development
(
PPDI |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8
Pioneer Drilling
(
PDC |
Quote |
Chart |
News |
PowerRating)
Tired of losing money
trading breakouts and breakdowns? Our special, Free Report, “5 Secrets to Short
Term Stock Trading” will show you some of the key strategies and attitudes that
traders throughout history have used to determine the right time to buy and the
right time to sell.
Click
here to get your free copy of “5 Secrets to Short Term Stock Trading”
— or call us today at 888-484-8220.
David Penn is Senior Editor at TradingMarkets.com.