Each day, TradingMarkets publishes a new list of TradingMarkets
Stock Indicators, which are are based upon our latest quantitative research.
We will be giving readers free access to 1 list per day, free of charge, to help explain the
methodologies and to coach new users; these lists
highlight trading edges backed by our database of more than 7-million historical
simulated trades.
Today's free
focus list comes from our
Stocks 5+ Consecutive Down Days list,
which will be available through the weekend. These are stocks that have closed down
for five or more consecutive days and are trading above their 200-day moving
average. Our research shows that stocks trading above their 200-day moving
average that close down for five or more days have shown positive returns, on
average, 1-day, 2-days and 1-week later. Historically, these stocks have
provided traders with a significant edge. To learn more about our research into
stocks that make five, or more, consecutive down days, and how to use this
information,
click here.
Let's take a closer look at two daily charts from the list above. Keep in
mind that these are only a few examples from the focus list, and that we are not recommending a trade
in these particular stocks. Traders should always create individual focus lists
and radar screens based on their own information and trading strategies, instead
of blindly following other people's recommendations.
Payless ShoeSource (PSS | news | PowerRating | PR Charts )
Our main trading philosophy here at TradingMarkets has always been to "buy
weakness in an uptrend." PSS is currently trading above its
200-day moving average (currently at $30.75). This tells us that the trend
is up, while the chart above shows that PSS has been pulling back over the last
several sessions.
Onyx Pharmaceuticals (ONXX | news | PowerRating | PR Charts )
Biopharmaceutical company Onyx Pharmaceuticals (ONXX | news | PowerRating | PR Charts ) has also
been sliding over the past few sessions, but the stock is up an incredible 180%
year-to-date. These extensively oversold conditions have historically led to
gains over the next 5 days.
You can find the full list
here. Also, Check out our
latest quantified research articles
here. If you don't already have a TradingMarkets subscription, click here
for a free 7-day trial. Check back daily for
7 Trading Ideas for Today,
and develop your own watchlist of stocks with historically-backed edges.
Darren Wong
Associate Editor
darrenw@tradingmarkets.com
Reminder: We are in no way
recommending the purchase or short sale of these stocks. This article is
intended for education purposes only. Trading should be based on your own
understanding of market conditions, price patterns and risk; our information is
designed to contribute to your understanding.
