PowerRatings Heat Map Focus: Electronics
Today’s
PowerRatings Heat Map article will focus on the Electronics sector.Â
This is one of the few sectors with high PowerRatings stocks. Each square
contains one stock symbol and is color-coded by it’s PowerRatings number. Stocks with high PowerRatings (8 or higher) have been
historically proven to outperform the S&P 500 over the next 5 sessions by up to
a 14.7 to 1 margin. Low PowerRatings have been shown to underperform the
S&P 500 over the next 5 days. These stocks should be put on a list of stocks
to avoid. More aggressive traders may want to keep an eye on these stocks
for a potential short entry.
One of the great features of
PowerRatings Heat Maps is that we can quickly gauge the overall stock market
or zoom in
on a particular sector for a deeper look. Here we have a close up of the
Electronics sector:
First we will look at a daily chart of a low PowerRated stock,
which should be avoided or shorted if you are a more aggressive trader.Â
Then we will look at two stocks with high PowerRatings.Â
Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating)
Chip-maker Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating) has a low PowerRating
of 2. This tells us that buying this stock carries greater risk, especially
since it has ran over 17% in the last 4 sessions.
Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating)
S&P 400 MidCap member Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating) has a high
PowerRating of 8 and has pulled back recently. Our trading philosophy here
at TradingMarkets is to “buy weakness” in uptrending stocks. Currently,
AFFX is trading above its 200-day simple
moving average (not shown). Being above the 200-day moving average
tells us that this stocks is trending upwards. Keep this stock on your
watch list for a potential move back upwards.
Jinpan International Ltd.
(
JST |
Quote |
Chart |
News |
PowerRating)
High voltage equipment maker Jinpan International
(
JST |
Quote |
Chart |
News |
PowerRating)
has a high PowerRating of 8 and has pulled back after a major run. JST has
a large 52-week range from $7.00 to $29.40 telling us that this stock has the
potential to make major moves. Make sure to keep this on your watchlist
for a possible entry.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics
covered include our latest research on
entries and exits, and
how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
Darren Wong
Associate Editor
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.