The Trend Is Your Friend, So Trade With It!
Yesterday’s
PowerRatings
article covering
Low-Priced Stocks showed you how well five stocks with a PowerRating of 8
outperformed the S&P 500. The five stocks selected were not the best performers
over that time period — a number of 9’s and 10’s did even better, but all five
recorded good gains, despite the S&P 500 declining over the same 5-day period.
In today’s article we’re going to take a look at how you could have performed
trading with the market trend. The S&P 500 has lost 0.99% over the past 5 days.
We’ll take this to indicate that the trend has been lower and therefore, that
looking for short selling candidates would have been a good strategy.
Here is a list of stocks that had a PowerRating 2 on 03/01/06.
These 10 stocks were selected from the list of
Lowest PowerRatings Stocks that is published every day. Once again, they are
not necessarily the ten best examples — a number of stocks with a PowerRating
of 1 dropped even more than some of these.
| Name (Symbol) | PowerRating |
| A.O. Taftnet ( TNT | Quote | Chart | News | PowerRating) |
2 |
| Zoltek ( ZOLT | Quote | Chart | News | PowerRating) |
2 |
| FuellCell Energy ( FCEL | Quote | Chart | News | PowerRating) |
2 |
| Optimal Group ( OPMR | Quote | Chart | News | PowerRating) |
2 |
| DOV Pharmaceutical ( DOVP | Quote | Chart | News | PowerRating) |
2 |
| Telik ( TELK | Quote | Chart | News | PowerRating) |
2 |
| NovaStar Financial ( NFI | Quote | Chart | News | PowerRating) |
2 |
| OYO Geospace ( OYOG | Quote | Chart | News | PowerRating) |
2 |
| ImClone Systems ( IMCL | Quote | Chart | News | PowerRating) |
2 |
| Tractor Supply ( TSCO | Quote | Chart | News | PowerRating) |
2 |
Here’s a chart courtesy of
www.stockcharts.com showing the
performance of these ten stocks.
This list shows that if you short stocks with a
low PowerRating when the market trend is down you will have a substantial edge.
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Ashton Dorkins
Editor-in-Chief