Free Open Access: S&P 500 PowerRatings (for Traders)
As of the writing of this article, the S&P 500 is pulling back from
new all-time highs. Let’s take a deeper look into the S&P 500 Index with
PowerRatings.
PowerRatings is a simple to use (and powerful)
ranking system that ranks stocks from 1 to 10. Stocks rated 9 and 10 have
outperformed the average stock by 12 to 1 since 1995 and ideally are the stocks
to focus on each day. Stocks rated 1 and 2 on average have lost money, and you
want to know these stocks in order to avoid them.
From the partial list below, we can see that there are
many stocks that have high PowerRatings (7 or higher) than stocks with low
PowerRatings (3 or lower).
Click
here for the full S&P 500 PowerRatings list. This tells us that as the market moves
lower and lower, the list of 9’s and
10’s grows larger. Meanwhile the list of 1’s and 2’s grows smaller and smaller. This happens because you are
statistically more likely to be successful by buying into short-term weakness
and selling into short-term strength. All of our
historically backtested research indicates this, and it is one of our
10 Rules For Successful Investing.
This list can be used on a daily basis to gauge short term market direction
and to figure out where the historical edge lies.
Let’s take a look at daily charts from S&P 500
companies with PowerRatings of 7 or higher:
Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating)
AMZN has a high PowerRating of 8. AMZN is currently pulling back from 7-year
highs and the stock is currently up 74% year-to-date. Trading pullbacks on
strong stocks is one of our main historically backed trading philosophies.
Cummins Inc.
(
CMI |
Quote |
Chart |
News |
PowerRating)
Diversified machinery maker Cummins Inc. has a high PowerRating of 8. The stock
is pulling back from all-time highs and has gains of 65% year-to-date.
This is just a quick starter’s guide on how to use
PowerRating (for
Traders)
to potentially gain an edge in your daily trading. Each day, we will be featuring
one
PowerRatings (for Traders) list, and releasing historically-backed data at no charge, to show
new users how best to take advantage of these opportunities. Check back tomorrow
for a new list, and a new group of stocks to focus on.
For a free PowerRatings (for Traders) trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
Darren Wong
Associate Editor
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.