Popularity of Monster Worldwide Uncovers a Buy Signal
One of the lists users can find at the PowerRatings web site is a list of the most requested stocks. These are the stocks users have looked up the most often. PowerRatings users tend to be real traders and the stocks they find interesting are often not among the most popular stocks that many individual investors follow. Yesterday, Monster Worldwide (NYSE: MWW) was on the most requested list. This stock is also oversold with a PowerRatings of 9.
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 8 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
In the past, buying stocks with a rating of 9 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 4.3%. Other entries and exits also show high winning percentages and large average gains.
ConnorsRSI confirms that MWW is oversold with a reading of 19.81. Trading Market Analytics offer a convenient screen to show the status of indicators including ConnorsRSI, Bollinger Bands ® (%b) and 2-period RSI at one glance. ConnorsRSI readings below 20 are considered oversold. The 2-period RSI and Bollinger Bands (%b) are also oversold.
We don’t know why MWW is on the list of most requested stocks but we do know a group of active traders is interested in the stock and it is oversold. There is potential for a large move in MWW.
For a free trial to PowerRatings, click here!
All data is as of the end of day on 1/23/2014.