PowerRatings Review: Big Gains for MOT, WATG, AET
Earlier in the week, we posted our regular 5 PowerRatings Stocks for the Next 5 Days column. This column highlights high PowerRatings stocks – stocks with PowerRatings of 8, 9 or 10 – that short term high probability stock traders might want to keep an eye on.
Of the five stocks from Tuesday’s report, three of them have moved impressively higher over the past few days. These include Motorola
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PowerRating), which pulled back by more than 2% the day it made our 5 Stocks list and rallied by more than 11% the next day.
Another example is Wonder Auto Technology
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PowerRating). This stock had closed lower for eight consecutive trading sessions as of the close on September 1 when we highlighted the stock. WATG has gained more than 8% since.
The third example from Tuesday’s 5 PowerRatings Stocks for the Next 5 Days column is Aetna
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PowerRating). The day AET appeared on our list, the stock had closed lower by more than 2%. Over the next few days? AET gained more than 4%.
Not every high PowerRating stock will react this positively so swiftly. Both Natus Medical
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PowerRating) and KBR Inc.
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PowerRating) continue to move lower above the 200-day moving average. As of Thursday’s close, both BABY and KBR have PowerRatings of 9 – making them stocks that short term traders should continue to look at as potential opportunities for high probability mean reversion trades.
In addition to BABY and KBR, here are three other high PowerRatings stocks that traders may want to keep an eye on over the next few days.
Merck & Company
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PowerRating) has a PowerRating of 8 and has closed lower for the past three days in a row above the 200-day moving average. As of Thursday’s close, MOT had a 2-period RSI of just over 2.
Boeing Company
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PowerRating) is another 8-rated stock. Down five days in a row, shares of Boeing have earned a higher than normal 2-period RSI due in part to sideways trading over the past two days.
Another 9-rated stock is Whole Foods Markets Inc.
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PowerRating). This stock closed lower for two days in a row going into Thursday’s trading and remains under some selling pressure – although its 2-period RSI is far from extreme oversold territory.
Join Larry Connors live, Tuesday, September 8 at 2 pm for a special presentation for our upcoming Swing Trading College. The Swing Trading College remains our number one, most popular course and this is the seventh time we’ve offered it. The class runs 14 weeks and covers short term trading of stocks, ETFs (3 weeks of ETFs), options, E-minis’s and building a full trading plan – along with 4 weeks of live trading.
In this class Larry will be also introducing for the first time a new high probability stock trading strategy, along with trading additional strategies to trade ETFs including Leveraged ETFs.
If you’d like to attend the presentation, you can register here.
David Penn is Editor in Chief at TradingMarkets.com.