Stock Trading with PowerRatings: 5 Stocks for the Next 5 Days (PCLN, EXPE, BIDU, ARUN, ICGE)
Going into trading on Tuesday, the number of stocks earning PowerRatings of 9 or 10 has increased significantly. While this is due in large part to selling on Monday, markets such as the Nasdaq 100 (basis the ^QQQQ^) have been moving lower for days.
Traders looking to buy stocks on weakness, then, should have more opportunities to choose from than has been the case for some time. But before taking immediate positions in any of these top-rated stocks, including those in today’s report, traders should look to follow “best practices” when it comes to trading PowerRatings stocks, including the use of limit orders to take positions on
intraday weakness.
To learn more about how to take positions in top PowerRatings stocks, including how to use limit orders to potentially increase your gains, click here to read: “PowerRatings: How to Find the Best Stocks to Trade Every Day.”
Here are 5 PowerRatings Stocks for the Next 5 Days:
Shares of ^PCLN^ earned a 1-point PowerRatings upgrade as of Monday’s close, bringing the stock’s PowerRatings to 9 ahead of trading on Tuesday.
PCLN’s 9-rating is the highest the stock has earned since late August. Then, a similar 1-point upgrade from 8 to 9 anticipated a gain of more than 9% over the next five days.
Also on our list of 5 PowerRatings Stocks for the Next 5 Days is Priceline rival ^EXPE^.
EXPE has earned PowerRatings of 9 for the past two consecutive days heading into Tuesday’s trading. The stock’s 9-rating is the highest EXPE has earned in several months.
Only five days ago, shares of ^BIDU^ had earned PowerRatings of 1. Going into trading today on Tuesday, the stock will open with a PowerRating of 9 – our second highest possible PowerRatings score.
Closing at their lowest level in six days, BIDU has not been rated more than 8 since August. Note that stocks that have earned PowerRatings of 9 have tended to outperform the average stock by a
margin of more than 9 to 1 in the short term. This is based on our quantified backtests on thousands of stocks going back to 1995.
This makes 9-rated stocks among those most sought after by traders looking to buy weakness and sell into strength.
Like Priceline, shares of ^ARUN^ earned a one-point PowerRatings upgrade from 8 to 9 as of the end of trading on Wednesday.
Shares of Aruba Networks have been on a tear for more than a month, ever since earning PowerRatings upgrades to 8 late in the first half of August. Closing under $17 then, ARUN rallied to more
than $22 by late September.
Another stock that made a strong run higher from mid-August through the end of September was ^ICGE^. And as traders and investors have begun taking profits in the stock, the stock’s pullback has earned ICGE a significant PowerRatings upgrade to 9.
Interestingly, shares of ICGE were rated 1 – our lowest rating – only four days ago. That 1-rating was an excellent sign that the stock had reached levels from which it has historically reversed and moved lower. Many traders use low PowerRatings as a signal to begin watching for potential pullbacks, given this strong historical tendency of stocks to move lower after earning such low PowerRatings scores.
Find out what Stock PowerRatings can do for you and your trading. Click here to launch your free, 7-day trial to our Stock PowerRatings today.
David Penn is Editor in Chief at TradingMarkets.com.