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 these trades 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.
Independent oil and gas producer Endeavour International Corporation (NYSE: END) has been falling since issuing a disappointing quarterly report. Production at the company’s Pennsylvania Marcellus shale play dropped significantly. Management sought to reassure traders that the drop was due to maintenance and was only a temporary problem. They are projecting record levels of production for the company next quarter and if management is right, the stock could be worth much more.
In the short-term, END is oversold with a PowerRatings of 9 and the stock could be a buy under $4.29.
All data is as of the end of day on 11/14/2013.