5 PowerRatings Stocks for the Next 5 Days: MOT, BABY, WATG, AET, KBR
Much of what makes a successful trader is being in the right place at the right time. Our PowerRatings, which rate stocks on a scale of 1 to 10 based on the probability of their outperformance in the near term, makes it possible for the average, retail trader to do both.
The highest rated PowerRatings stocks – stocks with PowerRatings of 10 – have outperformed the average stock by a margin of more than 14 to 1 after five days. Even the next highest rated stocks – those with PowerRatings of 9 – have bested the average stock by a more than 9 to 1 margin over the same time frame.
PowerRatings are a based on a proprietary combination of factors such as momentum, volatility and trend. But at root PowerRatings embrace a concept that has been known by professional traders for decades: successful short term trading is based on buying from sellers and selling to buyers.
Or as Larry Connors, founder of TradingMarkets.com and the man whose research team is responsible for PowerRatings, puts it: “buying the selling and selling the buying.”
In practice, this means that traders who use PowerRatings for their short term stock trading will be looking to buy stocks after they have pulled back and developed high PowerRatings of at least 8, and preferably 9 or 10 (8-rated stocks, according to our research, our performed the average stock by a margin of more than 6 to 1 after five days). Then, as these stocks recover, PowerRatings traders look to lock in gains and sell their shares back into the renewed demand. Buying the pullback (“the selling”) and selling the rally (“the buying”).
This means that PowerRatings traders probably aren’t trading every day – and probably not trading every other day, either. Instead, traders who use PowerRatings appreciate the value of waiting for the right moment, of being patient while stocks pullback and their PowerRatings rise, before putting valuable capital at risk in a volatile market. There are only so many high probability trading targets in any given week or month. PowerRatings helps traders both wait for and identify them.
For more tips on trading high PowerRatings stocks, click here to read Larry Connors PowerRatings trading primer, How to Find the Best Stocks to Trade Every Day.
Here are five stocks that have earned high PowerRatings of 9 or 10 that short term traders may want to keep an eye on over the next few days. Continued weakness above the 200-day moving average may represent an opportunity for short term traders to take advantage of markets that have moved from very overbought to oversold in a matter of days.
Motorola
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MOT |
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PowerRating) PowerRating of 10. RSI(2): 5.22
Natus Medical Inc.
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BABY |
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PowerRating) PowerRating of 10. RSI(2): 6.85
Wonder Auto Technology
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WATG |
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PowerRating) PowerRating of 9. RSI(2): 1.11
Aetna Inc.
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AET |
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PowerRating) PowerRating of 9. RSI(2): 4.14
KBR Inc.
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KBR |
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PowerRating) PowerRating of 9. RSI(2): 3.32
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
David Penn is Editor in Chief at TradingMarkets.com.