This Week’s PowerRatings Lessons
One of the great things about
PowerRatings
is that they can be used in so many different ways. Once you
understand the basics, you can combine them with a myriad of trading styles.
Each day I’m going to highlight some of the different ways you can incorporate
PowerRatings
into your existing trading strategies and hopefully teach you a few new ones
along the way. Here is a quick recap of this week’s lessons.
Using
PowerRatings
to catch a runaway stock
PEIX has doubled since January (and more than 77%
since Amy selected it!). When a stock has had a runaway move like this it can be
very difficult to pick the right time to enter. This is where can help
PowerRatings
you. Waiting for a stock to pullback and then register a high
PowerRating
(7-10) will give you a high probability trade
that the next leg up is about to begin. On 02/17/06 PEIX had a
PowerRating
of 9. In the four days since then PEIX is up
over 14% and the current price is adding to those gains.
Read more…
Using
PowerRatings
with 200-day
moving averages
Over the past few years
JCOM has responded very well to its’ 200-day MA. JCOM has performed very well
when it is trading above the 200-MA and struggled to make any progress while
below it. Also, tests of the 200-day MA have been significant — often providing
very good entry points.
These indicators coming together are a positive
sign, but what if you could add one final piece to the puzzle? How about being
able to add a statistical edge to your trade? By using
PowerRatings
you can do that. On 02/21/06 JCOM registered a of
PowerRating
8.
Read more…
Using
PowerRatings
to predict broad market moves
Today’s
PowerRatings
strategy is going to show you how they can be used as an indicator for the broad
market. You can do this by monitoring the list of stocks with
PowerRatings
of 9’s and 10’s, while also
monitoring the list of stocks with
PowerRatings
of 1’s and 2’s. On 02/21/06
there were only two stocks ((IDSY)
and (SNDK))
with a PowerRating
of 9. On 02/22 and 02/23 there were
three 9’s. On 02/24 there were two 9’s and then finally on 02/27 there was only
one 9 (with no 10’s on any of these days). On 02/28 the S&P500 lost almost
16-points!
Read more…
Using
PowerRatings
with the Head
and Shoulders pattern
Red Hat (RHAT)
has been in an uptrend since May 2005. If you look at the chart, you’ll see a
number of common TA techniques. We have a trend line, 50-day moving average and
what looks like a head and shoulders pattern. RHAT broke its trend line,
declined below the 50-MA and completed the H&S pattern by closing below the
neckline. This should lead to a decline at least equal to the size of the
pattern.
Read more…
Click here
to take a free trial of
PowerRatings.
You can also
attend a free
class on how to use
PowerRatings
presented by Steve Primo, our Director of Education.
Ashton Dorkins
Editor-in-Chief