How to Find Momentum Stocks
Today’s
PowerRatings
article will review stock performance from our new
Preferred Stock List
from the close of 5/25/07.
The
PowerRatings Preferred List is comprised of momentum stocks with high
PowerRatings (7-10) that have historically been widely held by major mutual
funds, hedge funds, and momentum investors. Because these stocks tend to move
rapidly, aggressive traders and investors find them highly attractive. To learn
more about the PowerRatings Preferred List and how to use it,
click here.
Here are some of
highest PowerRated stocks from the list:
Let’s take a look at a few
individual daily charts:
LSB Industries
(
LXU |
Quote |
Chart |
News |
PowerRating)
LXU, a manufacturer of geothermal and water source heat pumps
has a high PowerRating of 9. Stocks rated 9
and 10 have outperformed the average stock by 12 to 1 since 1995 and ideally are
the stocks to focus on each day. LXU is pulling back from a very strong
uptrend. The stock is up 69% year-to-date. Keep this one on your
watchlist and look for a move back to the upside.
Â
Aropostale
(
ARO |
Quote |
Chart |
News |
PowerRating)
S&P 400 Midcap member ARO has a high PowerRating of 7. This stock
is also pulling back after hitting fresh all-time highs last week. ARO is up 46%
year-to-date, so keep an eye on this momentum stock.
Dolby Laboratories
(
DLB |
Quote |
Chart |
News |
PowerRating)
Dolby Laboratories has also been making strong gains. The stock
is up 54% from May 26, 2006. Our main trading philosophy is to “buy
weakness”, especially in strongly performing stocks. DLB has a high PowerRating
of 7.
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.