Three Buy Signals to Start 2014
PowerRatings continues to show there are few trading opportunities available in the current market but the situation is improving. Heading into today’s trading, there are two stocks priced at $5 or more with a PowerRatings of 10. Only four stocks priced above $5 have a PowerRatings of 9.
The stocks with a PowerRatings of 10 are Rockwell Medical (NASDAQ: RMTI) and Christopher & Banks (NYSE: CBK). Their charts are shown below.
No ETFs have PowerRatings above 8. One leveraged ETF could provide trading opportunities. Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) has a PowerRatings of 10 and could be considered a buy below $20.86.
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 8 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
In the past, buying stocks with a rating of 10 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 5.9%. Other entries and exits also show high winning percentages and large average gains.
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All data is as of the end of day on 12/31/2013.