PowerRatings, Trading Strategies and Keeping the Edges on Your Side
Traders on Thursday realized that the fight isn’t over until the final bell as a late rally in the final hour of trading caused the Dow to gain more than 175 points, significantly trimming back the day’s losses.
To my eye, the late rally was pure panic short-covering. The markets moved almost vertically in that final hour and given the negative mood that has been hovering over the market for the past few days, it was not hard to imagine those short sellers who arrived late to the party scrambling to get out of ill-timed positions.
One of the great things about Short winstrol depot buy in australia online Term PowerRatings as an analytic tool is that they can help you determine when it is a good time in general to buy or sell stocks and ETFs. When market index ETFs like the SPY and the QQQQ and the DIA earn Short Term PowerRatings upgrades from especially low levels — as they have in recent days — it is vital that traders recognize the new reality and avoid initiating new bets against the market.
That’s not because traders are guaranteed to lose money otherwise. It is simply because our historical research tells us that the edges to the short side begin to disappear as Short Term PowerRatings increase from the 3 or lower range.  As high probability traders focused on stock trading strategies and ETF trading strategies that produce high-win rates and minimal drawdowns, we want to trade where the edges are.
Of the five stocks in yesterday’s report, all closed higher on Thursday — some significantly so. As buyers of weakness and sellers of strength, we know that it is important not to overstay our welcome when positions move in our favor. If you took advantage of any of the stocks from “PowerRatings, Profit-Taking and the Next Big Trade,†then consider taking profits — especially in those stocks that have (a) earned Short Term PowerRatings downgrades, (b) closed above their 5-day moving averages or (c) when 2-period RSI values climb above 70 on a closing basis.
Schweitzer-Mauduit International
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SWM |
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PowerRating) Short Term PowerRating 8. RSI(2): 13.06
Corinthian Colleges
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COCO |
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PowerRating) Short Term PowerRating 8. RSI(2): 7.98
Nash-Finch Company
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NAFC |
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PowerRating) Short Term PowerRating 8. RSI(2): 14.28
Here are another set of stocks that have pulled back in recent days and may provide opportunities for short term traders over the next few days. All of these stocks have Short Term PowerRatings of at least 8 out of a possible 10.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
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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.