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 3% pullback the next day and selling five days later has been profitable 71% of the time. The average winner has gained 3.1%. Other entries and exits also show high winning percentages and large average gains.
Pitney Bowes (NYSE: PBI) is scheduled to release earnings on Tuesday. Analysts expect a small decline in earnings for the third quarter compared to a year ago. They also expect earnings for 2013 to be lower when compared to 2012. PBI offers investors a dividend yield of 3.9% and the yield is amply covered by earnings. The company is also buying back its stock which provides a long-term benefit to shareholders.
Earnings announcements can attract attention to a stock and income investors could become buyers of PBI. The stock is oversold by almost any measure with a ConnorsRSI of 12.05 and a 2-period RSI of 3.78. With a PowerRatings of 8, PBI is a short-term buy on weakness.