How To Find Big-Moving Stocks
Today’s
PowerRatings article will revisit last
Monday’s article on stocks that have the biggest daily
increases in their PowerRatings.Â
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.Â
TradingMarkets publishes a daily list of stocks with the
Biggest PowerRatings Up Changes.
Here were last week’s “Biggest PowerRatings Up Changes”
| Symbol | PowerRating (8/7/2006) |
Change on 8/7/2006 |
% change from open 8/07 – close 8/11 |
| (GIFI) | 6 | 4 | +13% |
| (CRAY) | 7 | 3 | +4.9% |
| (DTLK) | 6 | 3 | +3.3% |
| (AVCI) | 6 | 3 | -12.5% |
| (MT) | 7 | 2 | -6.7% |
During the past week, our
average gain from these 5 stocks has been 2%, while the S&P 500 has had a -1%
return. Beating the S&P 500 has become the primary goal of money managers
everywhere and the results from our
Biggest PowerRatings Up Changes from last week has
performed extremely well.Â
While there is no guarantee that the performance will continue to outperform, we
can combine PowerRatings with other technical indicators to better target stocks
that are likely to make strong moves. In the coming weeks, I will bring
you strategies to show you how to combine PowerRatings with popular technical
indicators to help you find stocks that have favorable entries.
From 1995-2005,
stocks rated 7 have outperformed the S&P 500 by a better than 4-1 margin over a
five-day period. Stocks rated 8 have outperformed the S&P 500 by a better than
8-1 margin; stocks rated 9 have outperformed the S&P 500 by a 13-1 margin, and
those stocks that have achieved a 10 PowerRating have
outperformed the S&P 500 by a 16.9-1 margin.
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PowerRatings
presented by Steve Primo, our Director of Education.
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. Controlling risk through the use of protective stops is critical.