Find Stocks Ready To Explode Higher With PowerRatings
Today’s article looks at how to combine
PowerRatings with the TradingMarkets
Explosion List.
An inherent feature of all markets is
that periods of lower-than-normal volatility are usually followed by periods of
higher volatility. These stocks are trading at one-third or less of their normal
volatility and therefore have a high likelihood of exploding within the next few
trading days. To improve your ability to apply this knowledge,
click here.
The list for 07/19/06 contains 20 candidates. 3 of the 20 don’t qualify for
PowerRatings. Of the remaining 17, 2 have high PowerRatings (7-10) and are
trading above their 200-day
moving averages,
making them potential buy candidates.
Trinity Industries
(
TRN |
Quote |
Chart |
News |
PowerRating)
Expeditors International of Washington
(
EXPD |
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. 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.