PowerRatings Heat Maps are Bearish on Energy Stocks
One of the weakest sectors in today’s PowerRatings Heat Map
is Energy. As the sector has rallied over the past few sessions,
the edge in buying these stocks has all but diminished. The current Heat Map
shows a
high percentage of stocks with low PowerRatings (2’s and 3’s). Stocks with low
PowerRatings have historically underperformed the S&P 500 over the next five sessions.
Therefore, traders with positions in these stocks should consider locking in
gains, and those without positions should probably avoid purchasing
energy stocks at current levels. More aggressive traders may want to keep an eye on these stocks
for a potential short entries.
One of the great features of Heat Maps is that we can zoom in
on a particular sector for a deeper look. Here we have a close up of the
Energy sector’s lowest PowerRatings stocks:
Here are a few daily charts of the some of the energy stocks
listed above:
Schlumberger Ltd.
(
SLB |
Quote |
Chart |
News |
PowerRating)
As of 1:15 PM EST, SLB has fallen 3.5% from the close on 4/17/07.
InterOil Corp.
(
IOC |
Quote |
Chart |
News |
PowerRating)
IOC is currently down 5.5%.
Natco Group
(
NTG |
Quote |
Chart |
News |
PowerRating)
NTG is down 1.5% from yesterday’s close.
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.