Use PowerRatings with the Top Relative Strength/Earnings New-Highs list

Today’s article looks at how to combine

with the TradingMarkets

Top Relative Strength/Earnings New-Highs List

The Top Relative Strength/Earnings New-Highs List comprises of stocks have made
new highs and are also ranked in the top 15%-20% of both relative strength (RS)
and earnings (ER). Such stocks usually have the best fundamental and technical
prospects to move significantly higher. The industry sector, group and sub-group
for each stock are listed as well. The list also enables you to stay on top of
every consolidation breakout by strong earnings and relative strength stocks, as
well as identify “runaway” up-market super-strong technical criteria that offer
excellent shorter-term trading opportunities.

These stocks are prime candidates for buying strategies, including shorter-term
strategies with intraday-sized risk. These trades offer the opportunity to hold
at least part of the position (if they move quickly and strongly in your favor)
for a much longer period, often creating highly favorable risk/reward ratios. Be
sure to use this page nightly to identify candidates for the following trading

One final note: The number of new highs will almost always decrease
fairly markedly before an intermediate-term market peak, while the number of new
lows will almost always increase. Similarly, the number of new lows will almost
always decrease markedly prior to an intermediate-term bottom, while the number
of new highs will increase. To learn how to make the best use of this

click here

The list of 20 candidates for 07/10/06 contains 7 that don’t qualify for
. Of the remaining 13, 2 have low PowerRatings (1-3) and
should be avoided. Of the final 11 candidates, all have PowerRatings
between 4-6. This suggest that on a short-term basis none of these stocks are in
a favorable position.

From 1995-2005, stocks rated 7 have outperformed the S&P 500 by a better than
4-1 margin over a five-day period. Stocks rated 8 have outperformed the S&P 500
by a better than 8-1 margin; stocks rated 9 have outperformed the S&P 500 by a
13-1 margin, and those stocks that have achieved a 10

PowerRating have
outperformed the S&P 500 by a 16.9-1 margin.

Over the same test period (1995-2005), stocks with a PowerRating of 1, 2 or 3 have underperformed the
S&P 500 over the next five-days. The 1’s have performed 4.9 times worse than the
S&P 500, the 2’s have performed worse than the S&P 500, and the 3’s have only
managed 90% of the S&P 500 performance.

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Ashton Dorkins


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Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.