timing is everything: 2 stocks ready to rise

Discussion in 'Stocks' started by marketsurfer, Sep 15, 2009.

  1. http://www.tradingmarkets.com/.site...erything-2-Stocks--Poised-For-Gains-82217.cfm

    Even the hard core bears are starting to agree that the bull market has returned. The indexes are surging toward short term highs and public optimism is sweeping Wall Street.

    This street of dreams is a seductive place for many traders. The higher the market goes, the more pull it exerts on investors and traders to buy, buy, buy. A self fulfilling prophecy of profit and greed pushes the market ever further toward the sky.

    Buying while stocks are going up is highly alluring to the public seeming to make sense. However, our extensive studies have shown that buying during pullbacks in longer term bull trends is a much more effective method of stock picking for the short term. We have developed a proven method of locating stocks, regardless of underlying market conditions that are poised to produce short term gains. In this case, we define short term as one day, two days and one week after purchase.

    It is truly a simple system that anyone can implement. The first step is to make sure the stock isn’t bound for disaster. It’s critical to verify that the pull back isn’t a stock crushing death spiral. Odds are placed favorably that this isn’t the case by only looking at companies that are trading above their 200-day Simple Moving Average. The second step is to find stocks that have pulled back for 5 days or more, made 5 or more lower lows, or have gapped down 5 or 10% or more. Thirdly, we drill deeper into the list, pulling out names whose 2-period Relative Strength Index RSI(2) is less than 2. (You can click on this link for details on our tweaked RSI indicator) Finally, we only look at stocks that have a top reading on the Short Term PowerRatings chart. This means the stock has to have an 8, 9 or 10 rating to be considered. Our studies have proven that stocks that meet these criteria are poised for gains over the short term. Timing is truly everything in short term trading.

    Here are 2 stocks ready for short term gains
    Inovio Biomedical (INO | Quote | Chart | News | PowerRating): Short Term PowerRating 9; Above 200-day SMA; Down 5 plus days; RSI(2) 0.19