A Look at the Patterns Helps to Differentiate Stock Winners and Losers
Which stocks end up winners and which stocks end up losers are eventually explained by the “news.” In the end, there is always some fundamental factor that ultimately accounts for whether any particular stock is a winner or loser.
However, by the time the “news” is out, a stock quite likely has already made a major portion of its move, up or down. Technical analysis, on the other hand, can play a role in spotlighting which stocks are in the process of becoming winners and what stocks are in the process of becoming losers.
For instance, NS Group was spotlighted in the July 1 Wall Street Journal NYSE Winners listing as being the top gainer over the prior three months, up some 131.7%. Higher net income of this specialty steel manufacturer for the current fiscal year was the reason given.
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