The broad-based selling of stocks to end the week may have sent a few traders home for the weekend unhappy. But traders who are savvy enough to see opportunity in corrections are likely to find bargains in the days to come from strong stocks that have pulled back.
Whether your style as a trader is to buy dips--as we do--or to buy breakouts, our Short Term PowerRatings can be a powerful ally in keeping you out of the stocks that are likely to disappoint and in helping steer you toward the stocks that, according to our research, have the best chance to outperform the average stock in the short term.
The lowest rated stocks in our Short Term PowerRatings, for example, were found to actually underperform the average stock by a margin of approximately 4.9 to 1 after five days. Imagine having a set of stocks that you have culled from a stock screener or a list of ?Stocks On the Move? from a financial website or periodical, and not knowing that half of them, based on our proprietary research, actually have the odds stacked against them?
Knowing where these potential landmines may be in your list of stocks can be an invaluable assistance for a trader.
At the same time, of course, what trader would not love to know which of his or her top five or ten trading candidates in a given situation also belongs to a class of stocks (i.e., high Short Term PowerRating stocks) that has historically shown the capacity to outperform the average stock by 8 to 1, 13 to 1 or even 17 to 1?
This is what our Short Term PowerRatings can provide to short term stock traders who already have trading systems or methods they use and rely on every day. I?ve referred to this approach as using Short Term PowerRatings as a ?final feature? and it is one of the ways that we encourage traders to use our PowerRatings.
All five stocks in today?s report have Short Term PowerRatings of 8 or 9. Our research, involving millions of simulated stock trades between 1995 and 2007, indicated that stocks with Short Term PowerRatings of 8 outperformed the average stock by a margin of more than 8 to 1 after five days.
Stocks with Short Term PowerRatings of 9 were all the more impressive, besting the average stock by a margin of more than 13 to 1 over the same, five-day time period.
In addition to each stock?s PowerRating, I have listed the 2-period Relative Strength Index values as of the close on Friday. We consider stocks with 2-period RSIs of less than 10 to be oversold, with stocks that have 2-period RSIs of less than 2 being treated as extremely oversold and most likely to reverse.
TTM Technologies Inc. (TTMI | news | PowerRating | PR Charts ) Short Term PowerRating 9. RSI(2): 4.80
FLIR Systems Inc. (FLIR | news | PowerRating | PR Charts ) Short Term PowerRating 9. RSI(2): 9.09
Skillsoft PLC ADR (SKIL | news | PowerRating | PR Charts ) Short Term PowerRating 8. RSI(2): 7.36
Rambus Inc. (RMBS | news | PowerRating | PR Charts ) Short Term PowerRating 8. RSI(2): 5.57
Celestica Inc. (CLS | news | PowerRating | PR Charts ) Short Term PowerRating 8. RSI(2): 4.53
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
