Find low-priced stocks ready to surge with PowerRatings
Today’s article looks at how to combine
PowerRatings with the TradingMarkets
Low-Priced Stocks Ready To Surge list.
These are the stocks under $10/share that today made new 10-day lows that are
still in an uptrend as they are trading above their 200-day
moving average.
They are sorted in rank according to how over-extended they are vs. their 10-day
moving average. For example, the top ranked stock is trading the furthest
distance from its 10-day moving average on a percentage basis. Historically,
these stocks on average have had larger than normal short-term upside reversals.
Please note: All stocks carry risk and low-priced stocks usually come with even
more risk. Always use caution.
The list for 07/21/06 (Friday’s close) has only one stock that meets the above
criteria. It also has a high PowerRating (7-10) suggesting it is likely to
outperform the S&P 500 this week.
Visteon
(
VC |
Quote |
Chart |
News |
PowerRating)
1. 200-day MA
2. 10-day low
3. 10-day MA
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.
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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. 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. Controlling risk through the use of protective stops is critical.