This trading week has a been a turbulent one for those residing on the eastern seaboard, with the effects of Hurricane Sandy prompting the first consecutive 2-day market closure due to weather in over a century. We wrapped up the previous week’s trading with the market oversold and continuing to feed off of the approaching presidential election. Trading recommenced on Wednesday after the 2-day interlude with the market still oversold and almost a quarter of DOW stocks showing 2-period RSI readings under 5. By Thursday we were still in somewhat of a holding period with the election looming larger than ever, but the market edged into overbought territory by the day’s close after the prolonged oversold conditions. The trading week ended on Friday with market back in neutral territory and all eyes now on Tuesday’s election. The top-performing stocks from this trading week came from the technology, services, and healthcare 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 26, 2012.
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Performance of 10/26/12 – 11/02/12 Trading Week
Quantum Corporation (QTM)
Shares of Quantum Corporation slumped throughout the end of October, losing 15.3% last Thursday and a further 9.8% on Friday the 26th. Wednesday’s trading resulted in extended losses as QTM hit a new 52-week low and crossed over into extreme oversold conditions with a 2-period RSI reading of 0.41. QTM rallied to end the week though, gaining 12.4% on Thursday and 16.1% on Friday for a 24.55% weekly gain.
- 10/26/12 Entry Price: 1.10 with a PowerRating of 8
- 11/02/12 Exit Price: 1.37
- Gain: 24.55%
Grand Canyon Education, Inc. (LOPE)
Grand Canyon Education, Inc. shares closed last Friday trading above its 200-day moving average in moderately oversold territory. After small gains and losses on Wednesday and Thursday respectively LOPE spiked 13% in Friday’s trading after posting strong Q3 results showing a 44% bump in earnings and a 17% jump in revenue growth. LOPE ended the week at $24.43 for an almost 17% gain for the trading week.
- 10/26/12 Entry Price: 20.89 with a PowerRating of 8
- 11/02/12 Exit Price: 24.43
- Gain: 16.95%
Gentiva Health Services Inc. (GTIV)
Trading above its 200-day moving average coming into this week, shares of Gentiva Health Services Inc. became increasingly oversold leading up to the end of Wednesday’s trading. GTIV rallied early Thursday to gain a huge 21.2% for the day after a mild Q3 earnings release – but one that exceeded analyst’s expectations nonetheless. GTIV only lost 2.6% on Friday to secure a 16.42% gain for the week.
- 10/26/12 Entry Price: 9.50 with a PowerRating of 9
- 11/02/12 Exit Price: 11.06
- Gain: 16.42%
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Joshua Glasgall is Editor in Chief of Connors Research