Free Open Access: Stocks Down 5+ Consecutive Days

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 | Quote | Chart | News | PowerRating)

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 | Quote | Chart | News | PowerRating)

Biopharmaceutical company Onyx Pharmaceuticals (ONXX | Quote | Chart | News | PowerRating) 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.