PowerRatings Point to Slow Trading Day Friday
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 7 or higher on a pullback the next day and selling five days later has been profitable a high percentage of the time. A variety of entries and exits show high winning percentages and large average gains. Shorting stocks with PowerRatings of 3 or below could also be profitable.
Heading into Friday’s trading, very few stocks are offering either buy or sell signals. Of all the stocks in the S&P 500 index, only one is on a PowerRatings buy signal. That stock is Freeport-McMoRan Copper & Gold (NYSE: FCX), which is also one of the most oversold stocks ranked by ConnorsRSI. FCX closed Wednesday with a PowerRatings of 8.
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All data is as of the end of day on 11/27/2013.