Time Your Entries Better With PowerRatings

Today’s


P
owerRatings

strategy is going to cover Coldwater Creek
(
CWTR |
Quote |
Chart |
News |
PowerRating)
.

As you can see in the weekly chart of CWTR, it has been in an uptrend since
early 2003. The beginning of this trend coincided with the rally in the broad
market (chart 2). However, the S&P 500 has struggled to maintain its uptrend
over the past two years with long periods of sideways action.

CWTR on the other hand, has continued to be a market leader, recently breaking
out to a new high. While stocks like this may look easy to trade, in reality
they can be very difficult.

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.

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

editor@tradingmarkets.com