Should You Be Buying Into the Recent Strength?
After the latest market rally (which started last Friday), should traders be
buying into the strength? The simple answer is “No” and can be backed up by our
research that goes back to 1995 and covers several million trades. Many stocks
are stretched to the upside at this point and buyers may be running out of
steam.
Today’s
Power
Ratings (for Traders) article will look at stocks from our
PowerRatings (for Traders) 1’s and 2’s list. This can help
guide you to areas of the stock market that are moving and can help you steer
clear of dangerous sectors.
PowerRatings (for Traders) of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings (for Traders) stocks.
Today’s PowerRatings 1’s and 2’s
ViroPharma
(
VPHM |
Quote |
Chart |
News |
PowerRating)
ViroPharma
(
VPHM |
Quote |
Chart |
News |
PowerRating) has the lowest PowerRating of 1. ViroPharma
has gained 12% over the past 1-week, which tells us that a trade at this point
carries extra risk.
Energy Transfer Partners
(
ETP |
Quote |
Chart |
News |
PowerRating)
Energy Transfer Partners
(
ETP |
Quote |
Chart |
News |
PowerRating) has a low PowerRating of 2. This
natural gas transporter has risen in the past 6 sessions.
US Xpress Enterprises
(
XPRSA |
Quote |
Chart |
News |
PowerRating)
US Xpress Enterprises
(
XPRSA |
Quote |
Chart |
News |
PowerRating) has a low PowerRating of 2.
This trucking services company has jumped 16% over the past week.Â
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