The Luck of Double 7s & Bullish PowerRatings Stocks

The stock market is made up of numbers. The amounts, if you will, are constantly changing up and down and all around. As you can imagine, this constant change has led to some pretty crazy ideas from investors and analysts who think they have seen a pattern emerge of some sort or another.

These theories run the gamut from simple to exceedingly complex. Most of the number pattern theories fall apart when tested in a rigorous scientific manner. It seems the more complicated the idea is, the more variables, the less likely it is to contain any edge. Traders keep searching for these repeatable patterns, often without or ignoring the evidence that most roads simply lead to more losses.

We discovered a very simple number pattern that has stood up to testing placing the odds of success at 80% since 1995. It’s called the “Double 7s Strategy”. It is so simple that many dismiss it as being too naïve to actually contain an edge. However, extensive testing and real life experience has proven otherwise. In a nutshell, the tactic has 3 rules:

  1. The SPY is trading above its 200 day moving average
  2. If the SPY closes at a 7 day low, buy
  3. If the SPY closes at a 7 day high, sell

Believe it or not, that’s it! Since 1993, this simple number method has been correct 80.4% of the time. This strategy also tests out in a variety of other indexes and equity ETFs.

Here are 5 highly ranked, bullish PowerRatings stocks ready for short term gains:

^CACC^

CACC chart

^BIOS^

^SWM^

^GLS^

^BMA^

Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14.7 to 1 after five days! Click here to launch your free PowerRatings trial today!

Try Stock PowerRatings for 7 days FREE…and start trading the top stocks every day. “You have the best technical analysis going – with winner after winner.” Click here now for your free 7 day trial!

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.