This Daily List Shows Which Stocks to Avoid
PowerRatings (for Traders) is a simple to use (and powerful)
ranking system that ranks stocks from 1 to 10. Stocks rated 9 and 10 have
outperformed the average stock by 12 to 1 since 1995 and ideally are the stocks
to focus on each day. Stocks rated 1 and 2 on average have lost money, and you
want to know these stocks in order to avoid them.
Each day we publish
a list of stocks
with the
lowest PowerRatings. Here is today’s list of stocks with PowerRatings of 1
or 2, which we are featuring as the free PowerRatings (for Traders) list of the
day.
This list represents the weakest stocks in our
PowerRatings database; most of these stocks have been rising over the past few
days, creating an edge to the downside. For more information about our
research into stocks that have made new highs for the past 5 days,
click here.
Let’s take a look at some of these stocks
individually.
Crocs
(
CROX |
Quote |
Chart |
News |
PowerRating)
CROX has been rallying strongly this month, up about 30% from the
same date last month. These types of extended rallies create short-term overbought
conditions. In addition to having a PowerRating of 1, CROX also has a 2-Period
RSI reading of 99.90 as of the writing of this article, which is clearly pushing
into extreme levels of short-term overbought conditions.
Look here for our research into 2-Period RSI overbought/oversold conditions.
Watch for CROX to take a breather soon.
Taser International
(
TASR |
Quote |
Chart |
News |
PowerRating)
TASR has rallied nearly 20% in the last five days, creating typical
oversold conditions which have historically led to a stock dropping in price. A
2-Period RSI reading of 99.34 support this argument; major gains over just a few
days creates a situation where, historically, corrections have occurred. Watch
for TASR to take a break over the next few days.
This is just a quick starter’s guide on how to use
PowerRatings lists
to gain an edge in your daily trading. Each day, we will be featuring a new
PowerRatings list, and releasing historically-backed data for no charge, to show
new users how best to take advantage of these opportunities. Check back tomorrow
for a new list, and a new group of stocks to focus on.
For a free PowerRatings (for Traders) trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
John Lee
Associate Editor
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding.