Last Week’s Best Performing PowerRatings Stock: KEYS
Today’s
PowerRatings article looks at the best low PowerRating stock for the past five
days:
Keystone Automotive Industries
(
KEYS |
Quote |
Chart |
News |
PowerRating)
The chart below shows that KEYS had risen for 3 out of the four sessions
between 12/01/06 and 12/06/06 and its PowerRating continued to fall. Then on 12/06/06
KEYS had a
PowerRating of 3, suggesting it
was likely to underperform the S&P 500 over the next five days (number 3 on the
chart).Â
We could also have used the 200-day simple
moving average
to help confirm the trend. We will consider any stock trading below its
200-day simple moving average to be in a downtrend and we look to trade in the
direction of the major trend.
Over the next five days KEYS proceeded to fall 19.80%.
From 1995-2005,
stocks with a PowerRating of 8 have outperformed the S&P 500
index on average by an 8.3-to-1 margin, while a PowerRating of 10 doubles that
performance to 16.3.
PowerRatings also help indicate a stock’s
downside as well as timely short-sale entry points; PowerRatings of 1 and 2 have
on average lost money over the next week. A PowerRating of 1 typically
underperformed the S&P 500 by a 5-1 margin.
PowerRatings provides an easy and powerful way
to find trading candidates.
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Darren Wong
Associate Editor
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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.