• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Stocks / Commentary / The Terrible Two’s: BVN, CBI and ESLR

The Terrible Two’s: BVN, CBI and ESLR

November 7, 2007 by David Penn

These three stocks started the day in the red, as far as our proprietary
PowerRatings (for Traders) ratings go, and things have only gone downhill from
there.

Compania de Minas Buenaventura
(
BVN |
Quote |
Chart |
News |
PowerRating)
, Chicago Bridge and Iron
Company

(
CBI |
Quote |
Chart |
News |
PowerRating)
, and Evergreen Solar, Inc.
(
ESLR |
Quote |
Chart |
News |
PowerRating)
all have
earned PowerRatings (for Traders) ratings of 2. Stocks with PowerRatings (for
Traders) ratings of 2 have historically underperformed, tending to decline
significantly in price over the next five days.

The only thing worse than a PowerRating (for Traders) rating of 2, is a
PowerRatings (for Traders) rating of 1. Unfortunately for BVN, CBI and ESLR,
all three found their 2 PowerRatings (for Traders) ratings slip down to that 1
level within the first few hours of trading this morning.

This makes these three the kind of stocks traders want to avoid or even
short. All three stocks are optionable, which means that traders can purchase
put options on these stocks rather than shorting them outright.

Interestingly, all three companies are plays in fields such as natural
resources and alternative energy, industries that have been popular (perhaps too
popular) with traders and investors in recent months.

Compania de Minas Buenaventura is the largest publicly-traded precious metals
company in Peru. In addition to being a major holder of mineral rights in Peru,
the company operates three mines in the country, and has controlling interest in
four more.

Chicago Bridge and Iron Company is one of the leading engineering,
procurement and construction companies in the world. CBI specializes in
“lump-sum” turnkey products for clients in the natural resources industry.

Evergreen Solar, Inc. develops, manufactures and markets solar power
products. The company is perhaps best known for a patented crystalline silicon
technology known as String Ribbon which reportedly uses less silicon than is
traditionally required.

It’s not every day that a stock falls to a PowerRatings (for Traders) rating
of 1. But that is precisely what these three stocks did, signaling the
potential for significant declines over the next five days. Whether you want to
short stocks like these, buy put options against them, or simply double check to
make sure that your trading portfolio isn’t laboring under these sort of 1 and 2
rated PowerRatings (for Traders) stocks, our list of 1’s and 2’s is updated
regularly and is well worth consulting throughout the trading day.

David Penn is Senior Editor at TradingMarkets.com

Filed Under: Commentary, Recent

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in