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CHICAGO--(BUSINESS WIRE)--Kevin
Matras shows how Moving Averages can help you spot winners in any type of
market. Stocks in this week’s article are Altra
Holdings, Inc. (NASDAQ: AIMC), Becton, Dickinson and Company (NYSE:
BDX), and Genco Shipping & Trading Ltd. (NYSE: GNK). Click here for
the full story exclusively on Zacks.com: http://at.zacks.com/?id=109
Screen of the Week written by Kevin Matras of Zacks Investment Research:
You can make money with individual stocks no matter what the market is doing.
But it is important to look at some key measurements. One of these measures is
the moving average. Short-term moving averages help gauge the short-term
direction of the market, while longer moving averages take a big picture view.
For example: if a stock breaks the 200-day moving average on its way
down, that's generally thought to be bearish, and the longer-term trend could be
reversing. The 200-day moving average can also act as support. If a stock comes
down, but stops at the major moving average and then starts moving higher from
there, it can act as a firm underpinning of support for the stock.
Looking at the 50-day moving average can be quite useful as well. It's
more of an intermediate snapshot of the price trend and is more sensitive than
the longer-term 200 day. A rising moving average with the price trading above it
is bullish, while a descending moving average with the price trading below it is
bearish.
More short-term signals can be seen with the 10- and 20-day moving
averages.
Moving average crossovers can also be valuable. When the quicker
moving average (50-day for example) is above the slower moving average
(200-day), this is thought to be bullish. Likewise, when the shorter term is
trading below the longer-term moving average, this is thought to be bearish.
Using a screener can be helpful in finding stocks that meet this criteria.
Of course, moving averages alone don't tell the whole story. But a company
with solid fundamentals while also trading above these momentum indicators can
help you find stocks bucking a downtrend or confirming an uptrend.
The screen that I'm running today looks for stocks trading above their short
term (10- and 20-day), intermediate term (50-day) and long-term (200-day) moving
averages. I'm also demanding that their current quarter earnings estimates have
been raised within the last 4 weeks (or at the very least, not lowered); their
average broker rating has been upgraded (or at the very least, not downgraded):
and they have a Zacks #2 Rank or Zacks #1 Rank (Buy or Strong Buy).
Here are 3 great-looking stocks that came through this screen (for Tues.,
8/26/08):
AIMC Altra Holdings, Inc.
BDX Becton, Dickinson and Company
GNK Genco Shipping & Trading Ltd.
With the Research Wizard, it's easy to screen for winning stocks like these,
even in tough markets. And once the stocks are displayed, you can scroll through
each stock chart with a click of the mouse and see where the stocks are in
relation to their different moving averages.
Sign up now for your free trial today and start picking better stocks
immediately. And with the backtesting feature, you can test your ideas to see
how you can improve your trading in both up markets and down markets. Don't wait
for the market to get better before you decide to do better. Start learning how
to be a better trader today!: http://at.zacks.com/?id=111
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