Want to Gauge Short-Term Market Bias? Try This List
TradingMarkets Indicators are a great way to get a solid grasp on the overall
market bias. Even by checking just one list, you gain an edge by identifying the
number of stocks in oversold or overbought territory.
Click here to go deeper into our research of short-term price movement.
Today, one list that stands out among many is the Stocks Up 10% or More list.
These are stocks that have gained 10% or more over the past five days and are
trading below their 200-day moving average. Our research shows that
stocks trading below their 200-day moving average that have gained 10% or more
over the past five days have shown negative returns, on average, 1-week later.
Historically, these stocks have provided traders with a significant
edge.
Click here to view the list, which is open to the public for the rest of the
week.
The first thing you should notice is how many stocks are on this list. There
aren’t just 10 or 20 stocks on the list; there are over 80 stocks in our
database that are trading 10% higher than they were 5 days ago. Automatically,
you should realize that across the market, there are a relatively large number
of stocks that are short-term overbought. These stocks have historically led to
losses over the next 5 days. Our research confirms that overbought conditions
normally lead to a drop in price, as the stock reestablishes “mean conditions.”
All of the stocks on this list are short-term overbought. Watch for
these stocks to fall in price over the next 5 days, because that is where the
historical edge lies. Also, if you see a stock on this list, go through that
sector and look for other overbought opportunities. Often, when one stock in a
group is overbought, there are more in the same group.
Toll Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating) has a PowerRating (for Traders) of 3.
Moody’s Corporation
(
MCO |
Quote |
Chart |
News |
PowerRating) has a PowerRating (for Traders) of 3.
