CECE: This Week’s Best PowerRatings Stock
Today’s
PowerRatings
article looks at the best performing stock for the past five days: CECO Environmental
(
CECE |
Quote |
Chart |
News |
PowerRating)
The chart below shows that CECE had been sliding
for three straight sessions from 2/09/07 to 2/13/07 indicating that sellers may
be done. This coincided with a
PowerRating of
7 on 2/13/07 suggesting CECE was likely to outperform the S&P 500 over
the next five days.
Also, we can use a technical indicator to further
investigate potential stocks. The 200-day simple moving average
can quickly tell us the direction of the trend.Â
Click here for detailed research by Ashton Dorkins and Larry Connors on how
the 200-day moving average can be used.
CECE has been trading above its 200-day moving
average since the beginning of the year and is currently at $9.62. This indicator along with
a strong PowerRating made CECE a strong buy on 2/13/07.
Over the next five sessions CECE
gained 21.58%.
PowerRatings performance shows the returns versus
the S&P 500 for the equivalent 5-day hold. The stocks which have had a PowerRating of 8 have outperformed the S&P 500 index on average over the next 5
days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a
10.1-1 margin. Stocks with a PowerRating of 10 have outperformed the S&P by
nearly 14.7-1 margin. This potential edge opens up a number of possibilities for
your trading and investing.
One more interesting fact about the
PowerRatings; PowerRatings of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings stocks.
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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.