Could Your Stocks Rally in the Next Few Days? Find Out with PowerRatings

TradingMarkets offers a proprietary stock rating method called PowerRatings. This method ranks stocks 1-10 and the higher the rating, the greater the one-week historical gain has been.

PowerRatings were created by Cesar Alvarez, Director of Research for Connors Capital, LLC. To validate PowerRatings performance, more than 8.2 million daily trades were looked at from Jan. 1, 1995 to Dec. 1, 2005 -- over 10 years worth of data. The results are based on the average 5-day performance.

Some interesting facts jump out from the performance table below. The first one being that stocks with PowerRatings' of 1-3 have lost money over the next 5-days (on average). Looking at the other end of the performance table reveals that stocks with PowerRatings of 7-10 have outperformed the S&P 500 and when you look at the stocks with PowerRatings of 9 and 10, they have outperformed by a substantial margin.

Here is a simulated average performance for over 3,000 big-cap, mid-cap, and small-cap stocks -- applying PowerRatings over 5 trading days:

How to use PowerRatings

So now that you know what PowerRatings are, the obvious question is "How do I use them?" Ideally, stocks rated 9 and 10 are buying candidates, and stocks rated 1 and 2 should be avoided.

There are numerous ways you can use PowerRatings in trading. To get started TradingMarkets has published a strategy guide and since the launch of PowerRatings numerous daily strategy articles have been written. Possibly the most useful feature of PowerRatings is that they can be used in conjunction with almost any trading strategy you employ, allowing you to combine a discretionary form of trading with quantified research.

All of this information can be accessed for free, however, subscribers will also be able to use a number of additional features:

• Top 25 PowerRatings Stocks
• Stocks To Avoid
• Biggest PowerRatings Up Changes
• Biggest PowerRatings Down Changes
• PowerRatings for all the S&P 500, NASDAQ 100 and Dow 30
  
  And many more...

We're sure that once you start using PowerRatings you'll be as excited by them as we are, whether you use them as a stand alone product, along with one of our TradingMarkets systems or combine them with your own strategies to make them even more powerful.

Click here to take a free trial of PowerRatings

You can also attend a free class on how to use PowerRatings presented by Steve Primo, our Director of Education.