Monday, March 27, 2006

Pixar Perfect

I want to understand how TradingMarkets.com comes up with their power ratings. They say that, according to PowerRatings.net, Pixar, Inc (PIXR) has a power rating of 8. Since I put a buy-limit order for some PIXR today, that interests me a little.

"Here are 7 of the top PowerRatings stocks from PowerRatings.net for the week of March 24.
Stocks are rated 1 through 10, with 10 being the highest. Stocks PowerRated 10 have on average outperformed the S&P 500 by a 16.9-1 margin over a one-week period from 1995-2005. Stocks PowerRated 1 and 2 have on average lost money in simulated trading over the next week." They have a daily chart for each stock in the article. Some of the stocks look pretty beaten up .... http://biz.yahoo.com/tm/060324/14094.html?.v=4

Three of the stocks, Sonus (SONS), Symbol Tech (SBL), and Western Digital (WDC), have experienced corrections, and are trading well under their 20-day simple moving average. PIXR and Nuance Communications ( NUAN) have pulled slightly back, to within range of their 20-day. JDS Uniphase (JDSU) is consolidating around four dollars and is very well bought. Ciena (CIEN) is rated a nine, and is in a nice trading range, for someone already long. It may be a little well bought for me. The question is, how would a highly rated stock do for the week, if the ratings weren't published.

I just want the Pixar shares for the certificates. There was a story two weeks ago about the high demand for their paper certificates, whimisically adorned with Woody or other characters. Not too anxious to have the order filled today; just a soon see it go in next week, so the trade counts in the new quarter.

I wonder if I have any stocks that are PowerRated a one? United Health may close down below fifty-five dollars. I seem to have a lot of stocks in that fifty-dollar range. Oh, snap! Valero just went into the green zone. With gas selling for three dollars a gallon, there is no reason their pps is under sixty. Newfield was weaker this morning, reflecting the selloff in NG futures. Nice to see them bounce back and keep the floor above forty dollars. Ryerson (RYI) crossed the twenty-day line, and is now over twenty-five. Not much volume though. Let's hope the sellers didn't notice. All in all, great start for a Monday.

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