This week’s PowerRatings lessons
Using
PowerRatings
to trade Gold
In today’s
PowerRatings
strategy we’re going to take a look at how you can use
PowerRatings
to trade Gold. On November 18, 2004,
streetTRACKS Gold Trust (GLD)
was launched. GLD is listed on the NYSE and trades just like any other ordinary
stock. GLD is designed to track the price of gold and is priced at 1/10th of an
ounce of gold. At the time of this writing GLD is trading at $54.34 — which
means that gold is currently trading at $543.40.
Read more…
Using
PowerRatings
to trade
Tech stocks
In today’s
PowerRatings
strategy we’re going to take a look at how you can use
PowerRatings
to trade tech stocks. Technology
stocks remain a favorite among investors due to their high
beta. Add that to the
fact that when the NASDAQ outperforms the S&P 500 it is positive for the market
overall and it’s easy to see why tech stocks are so popular.
TradingMarkets publishes two lists every day that can help you find the best
tech stocks to trade. The first list is the
NASDAQ 100
PowerRatings,
which contains all the constituents of the NASDAQ 100, and the second list is
the
Top 25
PowerRated
Tech Stocks.
Read more…
Using
PowerRatings
to time your entries
Today’s
PowerRatings
strategy is going to cover Coldwater Creek (CWTR).
The daily chart of CWTR has been trading sideways for 4 months. If you had
bought in anticipation of a resumption of the uptrend, at best you would have
tied up your capital for 4 months, at worst you could have bought near the top
of the range and suffered a 10% drawdown. However, waiting for a high
PowerRating
would have given you a statistical
edge. On 03/08/06 CWTR had a
PowerRating
of 8, over the next 5 days it recorded a 26.88% gain.
Read more…
Using
PowerRatings
to follow the Dow
Today’s
PowerRatings
strategy focuses on the Dow Jones Industrial Average. TradingMarkets publishes a
daily list of all 30 components of the Dow and their PowerRatings:
Dow 30 PowerRatings. However, when looking at the Dow, it’s important
to remember that it differs from most other indices because it is
price-weighted. That means the highest priced stocks have the most influence in
the index.
Read more…