Why you should focus on stocks with PowerRatings 7 or higher

In the

TradingMarkets PowerRatings Strategy Guide
, Strategy 1 says “Focus on stocks
rated 7 or higher.”

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.

Those numbers show that if you are looking to outperform the market, focusing on
stocks with a PowerRating 7 or higher is a good place to start. Every day you
can find numerous examples of stocks with high PowerRatings outperforming the
S&P 500.

Here is a selection of stocks with a PowerRating 7 or higher on 03/17/06.

Symbol PowerRating % Gain Symbol PowerRating % Gain

(
AMKR |
Quote |
Chart |
News |
PowerRating)
8 10.93
(
OYOG |
Quote |
Chart |
News |
PowerRating)
7 22.66

(
NMGC |
Quote |
Chart |
News |
PowerRating)
8 9.55
(
XING |
Quote |
Chart |
News |
PowerRating)
7 14.94

(
PRXL |
Quote |
Chart |
News |
PowerRating)
8 8.34
(
FORM |
Quote |
Chart |
News |
PowerRating)
7 11.72

(
WIRE |
Quote |
Chart |
News |
PowerRating)
8 6.93
(
PANL |
Quote |
Chart |
News |
PowerRating)
7 11.37

(
MRVL |
Quote |
Chart |
News |
PowerRating)
8 6.57
(
SIL |
Quote |
Chart |
News |
PowerRating)
7 11.17

Over the same five-day period the S&P 500
performance was -0.33%.

As you can see from the table and chart above, focusing on stocks with a
PowerRating 7 or higher can be a very profitable strategy.


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Ashton Dorkins

Editor-in-Chief

editor@tradingmarkets.com