PowerRatings and Insights into Intraday Selling: PCP, CNX, NDN
The fact that the major market indices finished in the green may obscure a growing anxiety and urge to sell. For patient PowerRatings traders, this means that opportunities to buy stocks on pullback may be only a few days away.
In a soon to be published interview with Charles Kirk of The Kirk Report, Larry Connors points out how high probability traders — such as those who follow PowerRatings — will often have higher than average cash positions much of the time compared to other traders. This is because stocks that are able to outperform the average stock by more than 14 to 1 over five days don’t show up every day. And a large part of being a successful trader — and especially a successful high probability trader — is being patient enough to wait for the best edges to appear.
This, plus having the discipline to execute the trades — even (if not especially) when the pullbacks are at their most extremes and the psychological discomfort hardest to bear — is the key to high probability trading success.
Right now, there are only three stocks with PowerRatings of 9. The rest of our Top 25 PowerRatings stocks are stocks with PowerRatings of 8. Traders should wait for further weakness in any of the stocks underscored here before considering them as potential trades.
Precision Castparts Corporation
(
PCP |
Quote |
Chart |
News |
PowerRating) has closed lower for two days in a row and may have broken down from a short-term consolidation above the 200-day moving average. PCP has a 2-period RSI of less than 11.
Also working its way through a short-term consolidation above the 200-day moving average is Consol Energy
(
CNX |
Quote |
Chart |
News |
PowerRating). This stock’s 2-period RSI of just over 16 suggests that additional selling may be necessary to turn a just-above-ordinary pullback to a more extreme “buy the selling” opportunity.
Another stock that PowerRatings may want to watch over the next few days is 99 Cents Only Stores
(
NDN |
Quote |
Chart |
News |
PowerRating). Trading sideways for the past 12 trading days, a breakdown from this short term consolidation could be the beginning of higher PowerRatings and better potential buying opportunities over the next few days.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.