How PowerRatings Caught a 24.7% Move in ANGO
Today’s
PowerRatings
article looks at the best performing stock for the past five days:
AngioDynamics Inc.
(
ANGO |
Quote |
Chart |
News |
PowerRating)
Point 1 on the chart below shows that ANGO had
been trading above recent highs. This coincided with a
PowerRating of
3 on 3/27/07 suggesting ANGO was likely to underperform the S&P 500 over
the next five days.
Also, we can also utilize the 200-day simple
moving average (red line) to further increase your historical edge before entering.Â
From our extensive database of over 7 million trades that ranges from
1/1/95 to 6/30/06, we came to the conclusion
that stocks trading below their 200-day moving average have underperformed the
S&P 500 index over the next week.Â
Click here for more detailed research on the 200-day moving average by Larry
Connors and Ashton Dorkins. Â Â
The red arrows point to possible entry points.Â
The first entry could have been made near the close of 3/27/07 using our
intraday PowerRatings, which are updated throughout the day. This would
have resulted in a gain of 24.7% if exited on a close 5 days later.
A second possible short entry could have been
made at the open of the next session (3/28/07), which would have resulted in a
gain of 16.7% over the next 4 sessions (4/2/07).
PowerRatings performance shows the returns versus
the S&P 500 for the equivalent 5-day hold. The stocks which have had a PowerRating of 8 have outperformed the S&P 500 index on average over the next 5
days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a
10.1-1 margin. Stocks with a PowerRating of 10 have outperformed the S&P by
nearly 14.7-1 margin. This potential edge opens up a number of possibilities for
your trading and investing.
One more interesting fact about the
PowerRatings; PowerRatings of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings stocks.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics
covered include our latest research on
entries and exits, and
how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings 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.