Use this tool with PowerRatings to find the best pullbacks

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.


article is going to focus on combining

TradingMarkets Pullback List
with PowerRatings.

Most successful momentum-based traders and money managers like to buy strong
stocks after they pull back. uses a proprietary mathematical
model to identify up to 30 (in weak or choppy markets there will be fewer) of
the strongest stocks that have pulled back from recent highs. These stocks
should be considered potential candidates to resume their longer-term uptrends.
To learn more about how to trade pullbacks successfully,

click here

Looking at the list of candidates for 06/21/06, 5 out of the 30 do not qualify
for a PowerRating. Of the remaining 25 stocks, only two have a PowerRating of 7
(or higher):

CoStar Group
Quote |
Chart |
News |

: 7

Sears Holdings
Quote |
Chart |
News |

: 7

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.

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.

You can
attend a free
on how to use

presented by Steve Primo, our Director of Education.

Click here
to take a free trial of


Ashton Dorkins


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