Big Weekly Winners: Swing Trading with PowerRatings

We wrapped up the previous trading week with pullbacks on Thursday and Friday into neutral territory after the unintended earnings release from Google, and entered Monday’s trading with the market oversold. With a short-term bounce looking likely, the market rallied from its oversold condition and settled into neutral territory once again by the end of Monday’s trading. Most media outlets blamed Tuesday’s volatile trading on earnings releases and Spain’s financial crisis, but the reality of the situation pointed more to the market beginning to tighten its grip on the Presidential election. By Thursday the market was oversold again and continuing to move in-step with the likelihood of an Obama re-election. We closed this trading week with the market in oversold territory and due for a bounce. Keep a watchful eye out for higher volatility and lower prices over the next two weeks. The top-performing stocks from this trading week came from the healthcare and technology sectors.

The stocks in this week’s Big Weekly Winners: Swing Trading with PowerRatings all earned PowerRatings of 8 or higher one week ago on October 19, 2012.

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Performance of 10/19/12 – 10/26/12 Trading Week

Cyclacel Pharmaceuticals, Inc. (CYCC)

Shares of Cyclacel Pharmaceuticals, Inc. performed very well this week, closing the previous Friday in oversold territory above its 50 and 200-day moving averages. CYCC jumped 10.3% on Monday, a further 9.4% on Wednesday, and finally settled after a spike in trading volume during Thursday’s trading with a 28.16% weekly gain.

• 10/19/12 Entry Price: 5.22 with a PowerRating of 9
• 10/26/12 Exit Price: 6.69
• Gain: 28.16%

LDK Solar Co., Ltd. (LDK)

LDK Solar Co., Ltd. shares hit a new 52-week low last Friday and crossed over into extremely oversold territory by the market close. LDK spiked sharply during Monday’s trading, gaining 21.1% amid announcements throughout the week surrounding its sale of 3 solar plants to help bolster the company’s finances. LDK was able to hold onto most of its gains from early in the week with a 19.72% bump by the end of Friday’s trading.

• 10/19/12 Entry Price: 0.71 with a PowerRating of 8
• 10/26/12 Exit Price: 0.85
• Gain: 19.72%

Cynosure, Inc. (CYNO)

After closing last Friday’s trading above its 200-day moving average in extremely oversold territory, shares of Cynosure, Inc. had a strong week following a well-received earnings announcement. CYNO jumped 8.9% on Tuesday after reporting a Q3 profit of $3.4 million. By the end of the trading week CYNO had had become extremely overbought with a weekly gain of 18.35%.

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Joshua Glasgall is Editor in Chief of Connors Research