Every day, Trading Markets has a web link to Everything you need to know for day-of-the-week. Consistently in the past week, nothing’s been out of the 3, 4 or 5 range, which based on their site means that none of their indicators are leaning in any particular way on these stocks. While they don’t tell you want indicators are used in the PowerRating formula, I’ve found that you cannot get a PowerRating on any stock that hasn’t been trading for more than 200 days. A “How To” for PowerRatings can be found here. Based on their studies which have been back-tested to 1995 (yeah, I know, it’s relatively easy to find something that would have worked if you only knew about it), stocks rated 9 or 10 have on average been the S&P 500 over the next 5 days by a better than 14-1 margin. The success rate? Unsure, and there’s a paucity of information that I could find by searching for independent testimonials, independent commentary, or external reviews of the PowerRatings system.

Make no mistake, there’s something slightly shady about this since everything on the site points to standard glitz and glam to make things look so easy. What I’ll do over the next month is come up with several batches of stocks (let’s say 30), get PowerRatings on this batch and see how the do after 5 days. I’ll do this as many times as I can and report the results here.