How to Catch PowerRatings Setups Sooner
Today’s
PowerRatings article will focus on stocks that have the biggest daily
increases in their PowerRatings.
These stocks have tended to do especially well if
they’ve had an increase in their rating by at least 2 points or more and they
have a PowerRating of 7 or higher today. The rule is: the bigger the PowerRating
change to the upside, combined with the today’s higher PowerRating, the better
the stock has performed over the next week.
TradingMarkets publishes a daily list of stocks with the
Biggest PowerRatings Up Changes.
Here are some of today’s “Biggest PowerRatings Up Changes.”
PowerRatings are updated throughout the day and
once after the close. More aggressive traders can use PowerRatings to
start positions during the trading day, which may help to catch moves right from
the beginning.
Here are a few daily charts from the list above:
Dollar General
(
DG |
Quote |
Chart |
News |
PowerRating)
DG (a member of the S&P 500) had a PowerRating of 9 from
yesterday’s close. It will be interesting to see if the stock’s
PowerRating increases to a 10 through the trading day. This is definitely
a stock to track on your watch list.
Hecla Mining
(
HL |
Quote |
Chart |
News |
PowerRating)
HL’s PowerRating jumped from 6 to 7 making more likely to beat
the S&P 500 over the next 5-8 trading days. Continue to monitor for a
potential entry.
STATS ChipPAC Ltd.
(
STTS |
Quote |
Chart |
News |
PowerRating)
STTS’ PowerRating increased from 8 to 9 within today’s
session. Watch for price action to time your entry.
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.