Read Larry Connors' blog – Short Term Trading Strategies
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Much of the time, many of the high PowerRatings stocks we present to traders and subscribers are not the most, well-known stocks in the world. After all, our priority when it comes to high probability ETF trading is to take the opportunities - and the edges - as and where they come. And if that means that many of the stocks we trade are lesser lights - from stocks like the 10-rated Compellent Technology (CML | Quote | Chart | News | PowerRating) to M&F Worldwide Corporation (MFW | Quote | Chart | News | PowerRating) - so be it.
But that doesn't mean that there aren't high PowerRatings stocks among the more familiar names of the Dow and Nasdaq 100, for example. And when they appear, their popularity - to say nothing of their liquidity and optionability - almost demands that we highlight them for our readers.
For more tips on how to trade PowerRatings stocks, read Larry Connors' strategy primer: How to Find the Best Stocks to Trade Every Day.
Boeing Company (BA | Quote | Chart | News | PowerRating) stoked the anxieties of traders and investors again on Tuesday with word that its much-anticipated Dreamliner would be delayed.
Shares of BA gapped down by more than 5% on at the open on Tuesday, causing the stock to touch its 200-day moving average on an intraday basis before buyers stepped in to bid the stock higher. The stock has closed lower for three trading days in a row to earn a PowerRating of 9.
Two 8-rated stocks have also made today's PowerRatings report. Walt Disney (DIS | Quote | Chart | News | PowerRating) has actually begun to bounce in the first few minutes of trading on Wednesday.
The stock closed higher on Tuesday and is showing some follow-through to the upside this morning. As of this writing, DIS has not yet crossed back above its 5-day moving average, but has moved back into neutral territory. Further intraday weakness will be required to recreate an opportunity in this stock.
Last, shares of United Technologies (UTX | Quote | Chart | News | PowerRating) closed for three trading days in a row leading into Wednesday's trading and are again down early in the session.
UTX has spent the past two days with 2-period RSIs of less than 4 and its 2-period RSI in the first few minutes of trading on Wednesday is comparably low. Like Disney, United Technologies has a PowerRating of 8.
Recall that our research into short term stock behavior has shown that stocks with PowerRatings of 8 have outperformed the average stock by a margin of more than 6 to 1 after five days. Stocks with PowerRatings of 9 have fared even better, besting the average stock by a more than 9 to 1 margin over the same time period.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
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.
David Penn is Editor in Chief at TradingMarkets.com.
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