Introducing PowerRatings Charts
We’re proud to announce the launch of PowerRatings Charts (beta). This latest addition to the PowerRatings service provides you with a visual representation of how PowerRatings works, both in real-time and from a historical perspective.
There are two types of PowerRatings Charts: Short Term (for Traders) and Long Term (for Investors).
Short Term PowerRatings
Short Term PowerRatings are ideal for traders looking for a quantified edge over the next 3-8 trading days. More than 8.5 million daily trades were looked at from January 1, 1995-September 30, 2006, and the simulated performance is based upon a 5-day holding period versus the S&P 500.
Stocks which have had a PowerRating of 8 have, on average, outperformed the S&P 500 over the next five days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a 10.1-1 margin. And, stocks with a PowerRating of 10 (the highest) have outperformed the S&P by a 14.7-1 margin.
At the other end of the scale, PowerRatings of 1 and 2 have on average lost money over the next five days. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin. Obviously, you should consider buying stocks with high PowerRatings, and avoiding (or shorting) stocks with low PowerRatings.
Here’s an example of a Short Term PowerRatings Chart:
In this chart, we’ve chosen to display only when the stock has a high Short Term PowerRating (8-10) and a low Short Term PowerRating (1-3).
The PowerRatings Oscillator displays the stock’s rating for each trading day. As you can see from both the oscillator and the price chart, WFR has a PowerRating of 10 today.
Long Term PowerRatings
Long Term PowerRatings are ideal for investors looking for a quantified edge over the next 12 months. The simulated performance is based upon a 1-year holding period versus the S&P 500.
The average gain for all days a stock has had a PowerRating of 10 (the highest) since 1995 has been 20.17%, far higher than the average gain of all stocks during the same period of time. Stocks with a PowerRating of 1 (the lowest) have, on average, lost -5.08% over the next year.
From January 1, 1995 through June 30, 2007, we measured how frequently stocks with a PowerRating of 10 (the highest) were higher one year later. During this period, stocks with a PowerRating of 10 have been higher one year later 81% of the time. On the opposite end of the spectrum, stocks with a PowerRating of 1 (the lowest) have been higher one year later only 34.7% of the time.
Here’s an example of a Long term PowerRatings Chart:
In this chart, we’ve chosen to display only when the stock has a high Long Term PowerRating (8-10) and a low Long Term PowerRating (1-3).
Once again, the PowerRatings Oscillator displays the stock’s rating for each trading day. As you can see from both the oscillator and the price chart, CRL has a PowerRating of 10 today. However, you’ll also notice that unlike the previous example (Short Term PowerRatings), this stock’s rating remains high throughout the 3-month period being observed. This shows that Long Term PowerRatings has continually rated this stock as a likely candidate to outperform the market for the entire period displayed.
Additional Features
There are a number of additional features you can use, such as the type of chart (bar, candle, or line), timeframe (daily and weekly), date range (from 3-months to 1-year), custom date ranges, and four different moving average settings.
Plus, PowerRatings Charts have up to 12-years of historical data!
We feel that PowerRatings Charts will help you make even better trading and investing decisions, and we hope you enjoy using them as much as we do.