AEM — this week’s best performing PowerRatings’ stock
Today’s
PowerRatings article looks at the best performing stock for the past five
days– Agnico Eagle Mines
(
AEM |
Quote |
Chart |
News |
PowerRating).Â
The chart below shows that AEM had been consolidating around the $36.00
level through the end of August before falling for 5 straight sessions. Then on
8/28/06 AEM had a
PowerRating of 7, suggesting it was likely to outperform the S&P 500 over
the next five days.
Over the next five days AEM
gained 14.67%. AEM continued to have a PowerRating of 7 on 8/29/06 as
well. An entry on this day would have gained 15.63% over the next 5
trading days.
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From 1995-2005,
stocks with a PowerRating of 8 have outperformed the S&P 500
index on average by an 8.3-to-1 margin, while a PowerRating of 10 doubles that
performance to 16.3.
PowerRatings also help indicate a stock’s
downside as well as timely short-sale entry points; PowerRatings of 1 and 2 have
on average lost money over the next week. A PowerRating of 1 typically
underperformed the S&P 500 by a 5-1 margin. Obviously, you should ideally be
looking to buy high PowerRating stocks and avoid (or short) low PowerRatings
stocks.
You can
attend a free
class on how to use
PowerRatings,
presented by Steve Primo, our Director of Education.
Click here
to take a free trial of
PowerRatings.
Darren Wong
Associate Editor
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Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.
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