Short-Term Trading Opportunities
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter these trades with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
In the past, buying stocks with a rating of 8 on a 5% pullback the next day and selling five days later has been profitable 72% of the time. The average winner has gained 3.9%. Other entries and exits also show high winning percentages and large average gains.
Logitech (NASDAQ: LOGI) has been making computer peripheral devices since 1981 when they began selling a mouse connected to a computer with a cord. Since then, they have continued to focus on what company management calls the “last inch” between users and their computer or console game, digital music or home-entertainment system. The company is scheduled to announce earnings on October 24. LOGI has a history of big misses or big beats on earnings and has delivered two triple-digit misses and two triple-digit beats in the past year.
Call options are available on LOGI. With a PowerRatings buy signal just a week before earnings, calls on LOGI offer a low-cost trading opportunity on a stock with a history of volatility around earnings releases.