"Do stocks show an upward bias at the end of the month? It looks like they do."

-- Larry Connors, "The End of the Month Strategy," Short Term Trading Strategies That Work

This is how Larry Connors introduced Chapter 11 of his book, Short Term Trading Strategies That Work. And for stock traders trading stocks using PowerRatings, this concept of stocks moving higher toward the end of the month proved to be an excellent guide to locking in gains in a number of top rated stocks as August drew to a close.

Consider for example the move in Westlake Chemical Corp (WLK).

Shares of WLK earned Stock PowerRatings of 9 on August 23. Using a 3% limit order entry (click here to read about how to use limit orders when trading top PowerRatings stocks), traders could have gotten long in WLK the very next day at a price near 24.97.

Three days later, WLK rallied to close above its 5-day moving average - a standard Stock PowerRatings exit signal - gaining more than 6% for short term traders who took advantage of Westlake Chemical's top rated status.

Also earning Stock PowerRatings of 9 on the 23rd were shares of Siga Pharmaceuticals Inc (SIGA).

Again, a 3% limit order got PowerRatings traders long in SIGA one day after the stock was upgraded to 9. And it only took one day for Stock PowerRatings traders to lock in gains in the position, as shares of Siga Pharmaceuticals reversed back to the upside, closing above their 5-day moving average and earning traders nearly 5%.

Another recent winner from our top-rated Stock PowerRatings roster is the gain in under-$10 stock, Support.Com (SPRT), which earned Stock PowerRatings of 9 on August 24.

Here, it only took one day for short term traders using limit orders of 3% to get long SPRT, and one more day for those same Stock PowerRatings traders to find themselves locking in gains of more than 5%, as shares of SPRT rallied to close above their 5-day moving average.

All three stocks in today's report are examples of basic, stock trading strategies using PowerRatings. First, wait for the stock to earn a Stock PowerRatings upgrade to 9 or 10. Then, look to enter the stock the following day using a limit order of at least 2% and as much as 6% (note, a lower limit order will increase the number of trades, a higher limit order will increase the accuracy rate).

Finally, look to exit the position on a close above the 5-day simple moving average.

Stock PowerRatings are a quantified way for short term traders to take advantage of historical edges as stocks move back and forth from oversold extremes, which encourage Stock PowerRatings upgrades, to overbought extremes, which tend to lead to Stock PowerRatings downgrades. Trading upgraded stocks to the long side and avoiding - or selling short - downgraded stocks is a tested way for short term traders to stay on the right side of the market whether or not the market is trending higher, trending lower, or moving sideways.

Find out what Stock PowerRatings can do for you and your trading. Click here to launch your free, 7-day trial to our Stock PowerRatings today.

David Penn is Editor in Chief at TradingMarkets.com.