How to use PowerRatings with TradingMarkets’ Explosion list
Today’s
PowerRatings article will look at how you can use our proprietary
Explosion List along with PowerRatings to find stocks ready to move.
An inherent
feature of all markets is that periods of lower-than-normal volatility are
usually followed by periods of higher volatility. These stocks are trading at
one-third or less of their normal volatility and therefore have a high
likelihood of exploding within the next few trading days. To improve your
ability to apply this knowledge,
click here.
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 is a partial view of today’s
Explosion List:
Here are charts of one high PowerRating stock (7
or higher) TLK and one low rated PowerRating stock SWN (3 or lower):
PT Telekomunikasi Indonesia
(
TLK |
Quote |
Chart |
News |
PowerRating)
Southwestern Energy
(
SWN |
Quote |
Chart |
News |
PowerRating)
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.
Over the same test period (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
Want a free month of PowerRatings?
Send us your PowerRatings
strategy and receive one free month of this exciting trading tool. If you are
already a monthly or annual PowerRatings
subscriber, you will receive an additional three months if we publish your
strategy.
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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