Short Term Nasdaq Trading Strategies: ITMN, OTEX, MYGN
Stocks remain under pressure following the Dow industrials drop below the November lows.
Notably, both the S&P 500 and the Nasdaq remain above their November 2008 lows. This resilience is stronger in the Nasdaq which, while ticking below its January lows, still trades more than 100 points above the lowest levels of November.
InterMune
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PowerRating) Short Term PowerRating 10. RSI(2):
That may be of little salve to anyone who has been trying to pick a bottom in the Nasdaq — or in any other market, for that matter. Nevertheless, a sound trading strategy that is built on buying the right kind of sell-offs, pullbacks and corrections will allow traders to look at markets such as the ones we have been experiencing over the past year and a half or so and be confident in their ability to tell the difference between true opportunity and what often amounts to little more than a last-minute shot from half-court.
Open Text Corporation
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PowerRating) Short Term PowerRating 9. RSI(2):
This strategy starts with only buying stocks and ETFs that are trading above their 200-day moving averages. Even when the markets themselves are down below that level, there will always be some stocks that have withstood the selling pressure and continue to trade above the 200-day moving average. When it comes to long trades during bear markets, these are the only stocks and ETFs that we are interested in.
Myriad Genetics
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PowerRating) Short Term PowerRating 9. RSI(2):
Key also to our trading strategy are our PowerRatings. The higher the PowerRating in a given stock, the more likely that stock is to outperform its peers in the short term, “sweet spot” of 5-8 days. Rather than simply trading stocks that “look good”, traders can and should consider making our quantified Short Term PowerRatings a part of their daily trading strategy for finding and trading the stocks that are most likely to move higher in the near term.
Two of the stocks in today’s report have Short Term PowerRatings of 9, and one has earned our top rating of 10. Recall that stocks with Short Term PowerRatings of 9, according to our research, have outperformed the average stock by a margin of more than 13 to 1 after five days. 10-rated stocks have fared even better, besting the average stock by nearly a 17 to 1 margin over the same time period.
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.
| 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.
David Penn is Editor in Chief at TradingMarkets.com.