Combine PowerRatings with the TradingMarkets Momentum list
TradingMarkets
Indicators
page is designed to help with your daily research, formulate trading strategies,
learn about the market and generally improve your trading knowledge. It contains
a list of “Today’s Top Stocks” broken down into a number of different categories.
Today’s
PowerRatings article is going to focus on combining
TradingMarkets
Proprietary Momentum List with PowerRatings.
These are the 15 strongest stocks as measured by our proprietary relative
strength model. They recently have outperformed approximately 99.8% of the
publicly traded companies in the United States.
The list of 15 candidates for 07/03/06 contains 2 stocks that don’t qualify
for
PowerRatings. Of the remaining 13 stocks, none have high PowerRatings. Of course
this is not surprising since by its very nature this list is highlighting
momentum stocks and most high momentum stocks will naturally have low
PowerRatings. But that doesn’t mean these two tools can’t be used together.
If you look at the charts from today’s list (see below for some examples), most
of the stocks have gone straight up without even pausing for breath. That’s
where PowerRatings come in handy. You could track these high momentum stocks and
wait for a pause or pullback before entering in anticipation of another strong
move.
Arkansas Best
(
ABFS |
Quote |
Chart |
News |
PowerRating)
Colonial Properties Trust
(
CLP |
Quote |
Chart |
News |
PowerRating)
Energen
(
EGN |
Quote |
Chart |
News |
PowerRating)
Nordic American Tanker Shipping
(
NAT |
Quote |
Chart |
News |
PowerRating)
The Reynolds and Reynolds Company
(
REY |
Quote |
Chart |
News |
PowerRating)
From 1995-2005, stocks rated 7 have outperformed the S&P 500 by a better than
4-1 margin over a five-day period. Stocks rated 8 have outperformed the S&P 500
by a better than 8-1 margin; stocks rated 9 have outperformed the S&P 500 by a
13-1 margin, and those stocks that have achieved a 10
PowerRating have
outperformed the S&P 500 by a 16.9-1 margin.
Over the same test period (1995-2005), stocks with a PowerRating of 1, 2 or 3 have underperformed the
S&P 500 over the next five-days. The 1’s have performed 4.9 times worse than the
S&P 500, the 2’s have performed worse than the S&P 500, and the 3’s have only
managed 90% of the S&P 500 performance.
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.
Ashton Dorkins
Editor-in-Chief
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Reminder: We are in no way recommending the purchase or short sale of these
stocks. 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.