A Simple Tool to Help You Find Short-Term Moves
Each day, TradingMarkets publishes
7 Trading Ideas for Today, a selection of stocks from our daily indicators.
TradingMarkets
Stock Indicators are based upon our latest quantitative research, and
highlight trading edges backed by our database of more than 7-million historical
simulated trades.
On Tuesday, March 27, Beckman Coulter
(
BEC |
Quote |
Chart |
News |
PowerRating)
was the candidate from the
Laps Down 5% or More list. These are stocks that lap down by 5% or more and
are trading above their 200-day moving average. Our research shows that stocks
trading above their 200-day moving average that lap down by more than 5% have
shown positive returns, on average, 1-day, 2-days and 1-week later.
Historically, these stocks have provided traders with a significant edge.
The TradingMarkets mantra is to “buy weakness,”
and that is exactly what you could have done here. After a $1.5 billion
acquisition, the stock lapped down to close down nearly 7%. BEC was a media
focus, with analysts from all different news organizations putting in their “two
cents.”
1-day later, BEC closed
+0.5%.
2-days later, BEC closed +0.4%.
5-days later, BEC closed +3.0%.
Obviously, results like these do not occur every
time, but our quantified research clearly shows that the edges exist during
extreme oversold or overbought conditions.
Check out our latest quantified research articles
here.
If you don’t already have a TradingMarkets subscription,
click here for a free 7-day trial. Check back daily for more 7 Trading Ideas
for Today, and develop your own watchlist of stocks with historically-backed
edges.
John Lee
Associate Editor