New book by Larry Connors Click here Improve your trading - See how
| TradingMarkets.com
The fact that the major market indices finished in the green may obscure a growing anxiety and urge to sell. For patient PowerRatings traders, this means that opportunities to buy stocks on pullback may be only a few days away.
In a soon to be published interview with Charles Kirk of The Kirk Report, Larry Connors points out how high probability traders – such as those who follow PowerRatings – will often have higher than average cash positions much of the time compared to other traders. This is because stocks that are able to outperform the average stock by more than 14 to 1 over five days don’t show up every day. And a large part of being a successful trader – and especially a successful high probability trader – is being patient enough to wait for the best edges to appear.
This, plus having the discipline to execute the trades – even (if not especially) when the pullbacks are at their most extremes and the psychological discomfort hardest to bear – is the key to high probability trading success.
Right now, there are only three stocks with PowerRatings of 9. The rest of our Top 25 PowerRatings stocks are stocks with PowerRatings of 8. Traders should wait for further weakness in any of the stocks underscored here before considering them as potential trades.
Precision Castparts Corporation (PCP | Quote | Chart | News | PowerRating) has closed lower for two days in a row and may have broken down from a short-term consolidation above the 200-day moving average. PCP has a 2-period RSI of less than 11.
Also working its way through a short-term consolidation above the 200-day moving average is Consol Energy (CNX | Quote | Chart | News | PowerRating). This stock’s 2-period RSI of just over 16 suggests that additional selling may be necessary to turn a just-above-ordinary pullback to a more extreme "buy the selling" opportunity.
Another stock that PowerRatings may want to watch over the next few days is 99 Cents Only Stores (NDN | Quote | Chart | News | PowerRating). Trading sideways for the past 12 trading days, a breakdown from this short term consolidation could be the beginning of higher PowerRatings and better potential buying opportunities over the next few days.
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.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
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.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
