Swing Trader: Sector Rotation Strategy (TA&FA) Generates 7.59% for POWI
Exploring the Swing Trader's Sector Rotation Strategy: POWI Generates 7.59% Returns
In the world of finance, swing trading is a popular strategy employed by traders aiming to capture short-term price movements in the market. One such strategy, known as sector rotation, involves shifting investments between different sectors based on their performance. This article delves into the recent success of a swing trader utilizing a sector rotation strategy, focusing on the specific case of POWI (Power Integrations Inc.), which has yielded a remarkable return of 7.59%.
Bullish Trend Analysis:
A key component of successful swing trading is the analysis of price trends and indicators. In the case of POWI, a bullish trend analysis suggests a potential reversal from a downward trend to an upward trend. One valuable tool used in this analysis is the Stochastic Oscillator, which measures the stock's momentum and indicates potential buying or selling opportunities.
According to the analysis conducted by Tickeron, the Stochastic Oscillator for POWI indicates that the stock price trend may be undergoing a reversal. Notably, in 43 out of 57 cases where the Stochastic Oscillator exited the oversold zone, an increase in price followed. This finding offers an optimistic outlook for POWI's future performance.
Odds of Continued Upward Trend:
Tickeron's analysis further indicates that the odds of a continued upward trend for POWI are estimated to be 75%. While it's important to note that no investment strategy guarantees success, this statistic suggests a higher probability of favorable price movement in the near future.
Sector Rotation Strategy:
The swing trader is responsible for the impressive 7.59% return on POWI and likely employed a sector rotation strategy, which involves reallocating investments between sectors based on their relative performance. This strategy aims to capitalize on market trends and maximize returns by identifying sectors that are poised for growth while avoiding sectors experiencing declines.
By effectively timing the entry and exit points of various sectors, swing traders can take advantage of potential profit opportunities. In the case of POWI, the swing trader's astute sector rotation strategy appears to have paid off handsomely, resulting in a noteworthy return on investment.
Swing trading, specifically employing a sector rotation strategy, can be a lucrative approach for traders seeking short-term gains. In the case of POWI, bullish trend analysis and the odds of a continued upward trend signal positive prospects for the stock. While risks associated with swing trading and market fluctuations exist, the success achieved in this instance serves as a testament to the potential rewards of a well-executed sector rotation strategy. As with any investment decision, it is crucial for traders to conduct thorough research, consider their risk tolerance, and make informed choices based on their individual financial goals.
POWI's Stochastic Oscillator stays in oversold zone for 5 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where POWI's RSI Indicator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where POWI advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
POWI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on POWI as a result. In of 107 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for POWI turned negative on September 21, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where POWI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for POWI entered a downward trend on September 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.624) is normal, around the industry mean (7.927). P/E Ratio (47.393) is within average values for comparable stocks, (53.689). POWI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.330). Dividend Yield (0.010) settles around the average of (0.022) among similar stocks. P/S Ratio (8.425) is also within normal values, averaging (72.520).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. POWI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of proprietary, high-voltage, analog & mixed-signal integrated circuits and high-voltage diodes
Industry Semiconductors
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| REMX | 66.42 | 2.00 | +3.10% |
| VanEck Rare Earth/Strat Mtls ETF | |||
| DSI | 81.52 | 0.64 | +0.79% |
| iShares MSCI KLD 400 Social ETF | |||
| XVV | 32.53 | 0.23 | +0.71% |
| iShares® ESG Screened S&P 500 ETF | |||
| EATV | 15.55 | 0.10 | +0.65% |
| VegTech Plant-based Innovt & Clmt ETF | |||
| MAYT | 25.84 | 0.15 | +0.58% |
| AllianzIM U.S. Large Cp Buffer10 May ETF | |||
POWI and
Correlation & Price change
A.I.dvisor indicates that over the last year, POWI has been closely correlated with DIOD. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if POWI jumps, then DIOD could also see price increases.
| Ticker / NAME | Correlation To POWI | 1D Price Change % | ||
|---|---|---|---|---|
| POWI | 100% | +1.73% | ||
| DIOD - POWI | 83% Closely correlated | +2.86% | ||
| NXPI - POWI | 81% Closely correlated | +1.95% | ||
| MPWR - POWI | 81% Closely correlated | +2.67% | ||
| MCHP - POWI | 80% Closely correlated | +2.76% | ||
| RMBS - POWI | 78% Closely correlated | +2.35% | ||
More | ||||