Hedge Fund Bears Could Push Stocks Higher

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 0 on a 5% pullback the next day and selling five days later has delivered wins 77% of the time. The average winner has gained 6.1%. Other entries and exits also show high winning percentages and large average gains.

Nearly 38% of the shares of Rubicon Technology (NASDAQ: RBCN) have been sold short according to the most recent data from the exchanges. RBCN is oversold with a PowerRatings of 9. Given the large short interest, a rapid reversal is likely to be seen if the stock turns higher as traders who are short take their profits.