Here’s An Easy Way Of Finding Stocks About To Breakdown
Today’s
PowerRatings article will look at how you can use our proprietary
Stocks Ready To Drop list along with PowerRatings to find stocks ready to move
lower. If you’re not a member,
sign up for a free trial.
These are the stocks
that today made new 10-day highs that are still in an downtrend as they are
trading below 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 downside
reversals.
Reminder: We are
in no way recommending the purchase or short sale of these stocks. 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.
Here are three stocks from today’s
list that also have
PowerRatings of 3 or lower:
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)]
Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating)
Biogen Idec Inc.
(
BIIB |
Quote |
Chart |
News |
PowerRating)
Over the period of 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
try
PowerRatings for yourself, risk free.
Darren Wong
Associate Editor
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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.
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