iRobot Gained 32% This Week; Find Out How to Spot Stocks Ready to Move
The global equity credit crunch has arrived at full force; further
explanation and dissection, from our point of view, is unnecessary at this time.
Why do we exempt ourselves from the problems of traders and investors all
over the world?
Because we have a time-tested, historically backed quantitative
strategy to assist us in these difficult times, and to be able to single
out the diamond in the rough. Stocks all over the world are falling, and they
are falling fast. However, these oversold conditions are providing classic
examples of the oversold pullback that leads to a mean-reverting bounce.
As Warren Buffett said, “We
simply attempt to be fearful when others are greedy and to be greedy only when
others are fearful.” Buffett’s quote embodies the TradingMarkets methodology,
which is to buy strong stocks that are pulling back, when everyone else is
heading for the hills.
Let’s take a look at what we consider the best PowerRatings (for Traders)
trade that occurred over the last week. iRobot
(
IRBT |
Quote |
Chart |
News |
PowerRating) has
gained 31.7% over the last five trading sessions, and had a high PowerRating (for Traders)
of 7 before making the big move.
From the daily chart of IRBT below, we
can see that the stock slid for several sessions prior to 8/8/2007. This
pullback, along with the stock hitting our other proprietary conditions prompted a
high PowerRating of 7, suggesting it was likely
to outperform the S&P 500 over the next five days. IRBT went on to gain +31.7%
over the next five sessions.
If you don’t have a PowerRatings subscription,
click here to start your 7-day free trial.
PowerRatings (for Traders) are a proprietary stock
rating method which ranks stocks on a scale of 1-10. The higher the rating, the
greater the one week historical gain has been for stocks with that rating. This
rating system can help traders outperform the market over the next one to five
trading days.
Start your
7-day Free Trial to see how PowerRatings (for Traders) can
improve your trading.