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Here are 7 stocks for traders for Wednesday:
AAR Corporation (AIR | Quote | Chart | News | PowerRating) reports earnings Wednesday morning, with analysts looking for $0.41 EPS.
When Acergy (ACGY | Quote | Chart | News | PowerRating) announces quarterly earnings on Wednesday before the bell, watch for $0.31 EPS.
Wolverine World Wide (WWW | Quote | Chart | News | PowerRating) should announce $0.28 EPS before the market opens on Wednesday morning.
When Genentech (DNA | Quote | Chart | News | PowerRating) announces earnings on Wednesday afternoon, analysts will be looking for $0.71 EPS.
Analysts are watching for Ruby Tuesday (RT | Quote | Chart | News | PowerRating) to report $0.47 EPS on Wednesday after the bell.
Chaparral Steel (CHAP | Quote | Chart | News | PowerRating) and YUM! Brands (YUM | Quote | Chart | News | PowerRating) both report after the close on Wednesday, so watch for heightened price action and volatility ahead of the bell.
John Lee
Associate Editor
johnl@tradingmarkets.com
Each day, TradingMarkets will be giving free open access to one of our stock indicator lists. The stocks on these lists all have historically backed data (covering over 7 million trades) to quantify their trading edge. Click here for today's free list of 2-Period RSI Above 98.
How to Systematically Trade a Fear-Driven Market
During the recent market selloff which began with the largest one-day drop in more than four years, Raptor II continued to make new equity highs. That's because the Raptor II trading system is designed to capitalize on extreme oversold conditions in individual stocks. So while most "experts" and the media were warning of a market meltdown, leading investors to sell stocks at precisely the wrong time, Raptor II was building a list of potential buy candidates. What followed was a typical "mean reversion" bounce that took our own trading account to new highs over the next few days. The market proved yet again that opinions are no match for statistics.
What is Raptor II?
Raptor II has been one of our best-selling trading systems. One good reason for this is that it has achieved the highest gains per winning trade of any strategy we have published to date. Raptor II identifies deeply oversold, usually event driven, mis-pricings in individual stocks. It does this by waiting for stocks to drop substantially, then triggering an entry signal once the sellers have been washed out, and the professionals move in.
This type of market action has existed for many decades, but until Raptor II, no one to our knowledge has developed a method to trade these moves in a systematic way. Raptor II uses a well-defined set-up to identify entries. And it also uses a well-defined set-up telling you when to exit. While there have been different systems that have traded oversold conditions, we do not believe that any of them have had the test trade results that Raptor II has.
Historically, going back to 1995, 75% of trades have been profitable, showing an average gain per winning trade of greater than 11% (based on simulated results*).
How to Trade Raptor II
There are three different ways Raptor II can be traded: as individual stocks, on a portfolio basis, or with options. The choice is up to you, so that you can select the style that best suits your own trading methodology.
Individual Stocks
- Decide for yourself how many stocks you want to trade
- Decide for yourself how many shares you want to trade
- Use a different exit strategy
- Apply your own money management/position sizing techniques
Structured Portfolio
- A balanced portfolio allows you to control your risk
- The benchmark 10-slot portfolio:
- Divide your account into 10 slots ($50,000/10 = $5000.00)
- When a trade is initiated, it occupies 1 slot ($5000.00)
- With the benchmark Portfolio you should never have more than 10 open positions
Trading with Options
- Long Call Options -- basic way to use options w/ Raptor II
- Front Month -- Average trade lasts 5 Days
- Out Of The Money Strike Price (potentially the biggest gains)
- Deep In The Money Strike Price (high premiums)
To learn more about Raptor II, click here.
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The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
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