Use PowerRatings with the TradingMarkets Explosion List
TradingMarkets
Indicators
page is designed to help with your daily research, formulate trading strategies,
learn about the market and generally improve your trading knowledge. It contains
a list of “Today’s Top Stocks” broken down into a number of different categories.
Today’s
PowerRatings article is going to focus on combining
TradingMarkets
Explosion List with PowerRatings.
An inherent feature of all markets is that periods of lower-than-normal
volatility are usually followed by periods of higher volatility. These stocks
are trading at one-third or less of their normal volatility and therefore have a
high likelihood of exploding within the next few trading days. To improve
your ability to apply this knowledge,
click here.
The list of 20 candidates for 06/29/06 contains 2 stocks that don’t qualify
for
PowerRatings. Of the remaining 18 stocks, only 1, Four Seasons Hotels
(
FS |
Quote |
Chart |
News |
PowerRating)
has a high PowerRating, and 4 have low (between 1-3)
PowerRatings:
Arch Coal
(
ACI |
Quote |
Chart |
News |
PowerRating)
Berry Petroleum
(
BRY |
Quote |
Chart |
News |
PowerRating)
World Fuel Services
(
INT |
Quote |
Chart |
News |
PowerRating)
Yanzhou Coal Mining Company
(
YZC |
Quote |
Chart |
News |
PowerRating)
By combining these tools you can find the stocks most likely to
outperform/under-perform the S&P 500 over the next 5-days, with a likely
expansion of volatility. These two criteria have the potential for large
directional moves.
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.
You can
attend a free
class on how to use
PowerRatings,
presented by Steve Primo, our Director of Education.
Click here
to take a free trial of
PowerRatings.
Ashton Dorkins
Editor-in-Chief
Want a free month of PowerRatings?
Send us your PowerRatings
strategy and receive one free month of this exciting trading tool. If you are
already a monthly or annual PowerRatings
subscriber, you will receive an additional three months if we publish your
strategy.
Reminder: We are in no way recommending the purchase or short sale of these
stocks. 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.