Time to buy or sell GOOG? PowerRatings can tell you
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. I’ll also show you some of the ways our members are using
PowerRatings
to improve their trading.
In today’s example, let’s take a look at Google
(
GOOG |
Quote |
Chart |
News |
PowerRating).
GOOG hit a new all-time high of $475 on 1/11/06
and could apparently do no wrong. Fewer than 3-weeks later, GOOG reported
disappointing earnings, causing the stock to gap down 10%.
Since then, GOOG has been freefalling and there
has been no shortage of coverage on GOOG in the media. Almost every day you hear
one analyst put forward the bullish case, while another puts forward the bearish
case. This kind of news flow can make it very confusing for investors looking to
buy or sell GOOG shares. However, if you follow
PowerRatings
you would have a quantified way of determining if, and possibly more
importantly, when GOOG is a buy or sell.
As you can see in the chart below, GOOG recently
recorded back to back
PowerRatings
of 8 and then a
PowerRating
of 9. The 200-day MA was also very near offering another layer of support. This
run of very strong
PowerRatings
indicated a high probability that GOOG was about to rally. The very next day
GOOG jumped more than 7%.
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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.
New!
Click here to learn how to trade
PowerRatings
in a simple, systematic way.
Ashton Dorkins
Editor-in-Chief