This Week’s Best PowerRatings Stock – CTB
Today’s
PowerRatings
article looks at the best performing stock for the past four days: Cooper
Tire & Rubber Company
(
CTB |
Quote |
Chart |
News |
PowerRating)
The chart below shows that CTB had been sliding
for five straight sessions from 2/22/07 to 2/28/06 indicating that sellers may
be done. This coincided with a
PowerRating of
8 on 2/28/07 suggesting CTB was likely to outperform the S&P 500 over
the next five days.
Also, we can use a technical indicator to further
investigate potential stocks. The 200-day simple moving average
can quickly tell us the direction of the trend.Â
Click here for detailed research by Ashton Dorkins and Larry Connors on how
the 200-day moving average can be used.
CTB has been trading above its 200-day moving
average since 11/08/06, which is currently at $12.06. This indicator along with
a strong PowerRating made CTB a strong buy on 2/28/07.
Over the next four sessions CTB
gained 26.3%.
PowerRatings performance shows the returns versus
the S&P 500 for the equivalent 5-day hold. The stocks which have had a PowerRating of 8 have outperformed the S&P 500 index on average over the next 5
days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a
10.1-1 margin. Stocks with a PowerRating of 10 have outperformed the S&P by
nearly 14.7-1 margin. This potential edge opens up a number of possibilities for
your trading and investing.
One more interesting fact about the
PowerRatings; PowerRatings of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings stocks.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics
covered include our latest research on
entries and exits, and
how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings 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.
Darren Wong
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.