Jim Cramer's Mad Money Review

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Gaps Down 5% or More: These are stocks that gap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that gap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Extreme Networks (NasdaqGM:EXTR - News). EXTR's PowerRating is 5.
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
LJ International (NasdaqGM:JADE - News). JADE's PowerRating is 4.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Quest Resource (NasdaqGM:QRCP - News). QRCP's PowerRating is 8.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Iris International (NasdaqGM:IRIS - News). IRIS's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Spartan Stores (NasdaqGM:SPTN - News). SPTN's PowerRating is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Tata Motors (NYSE:TTM - News). TTM's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
China Bak Battery (NasdaqGM:CBAK - News). CBAK's PowerRating is 1.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CBAK, EXTR, Hot Stocks, IRIS, JADE, ORCP, SPTN, TTM

1. Telestone Technologies (TSTC)
Composite Rating: 99*. Chinese communications components maker recently won four bids from regional telecom operators. The stock has been pulling back after hitting all-time highs. It recently started wireless-coverage projects for the 2008 Beijing Olympic Games Venue. Accumulation/Distribution Rating: B+**
2. Brocade Communications (BRCD)
Composite Rating: 98. The networking firm completed its $973 million acquisition of McData Corp. It also approved a $200 million stock buyback program, which added to the remaining $52.7 million from a previous plan. Mutual fund ownership has risen to 132 funds from 100 three quarters ago. Accumulation/Distribution Rating: B
3. VCG Holding Corp. (PTT)
Composite Rating: 98. The Colorado-based firm operates nightclubs and provides food and beverage services. Shares have surged over 60% so far this year. Accumulation/Distribution Rating: A+
4. Amtrust Financial Services (AFSI)
Composite Rating: 96. New York based insurance firm came public in November. Friedman Billings started coverage with an outperform rating. The stock was just 3% off its highs. Full-year profit estimates were recently revised higher. Accumulation/Distribution Rating: B+
5. L.J. International (JADE)
Composite Rating: 96. Volume swelled in recent weeks as the Hong Kong-based jewelry maker neared all-time highs. The stock is the leader in IBD’s Retail/Wholesale-Jewelry group, scoring highest marks in three categories. Accumulation/Distribution Rating: A+
6. Bovie Medial Corp. (BVX)
Composite Rating: 95. The stock has been rebounding after a recent dip to its 50-day moving average. Bovie owns three straight quarters of accelerating sales growth. Mutual fund ownership has doubled to six funds in recent quarters. Accumulation/Distribution Rating: B
7. Overhill Farms (OFI)
Composite Rating: 95. Frozen food manufacturer’s fiscal first-quarter earnings surged 150%, easily beating views. It recently won three-year deal with a national food brand worth up to $43 million. The company also added two new customers for private-label food products. The stock was within striking distance of its all-time highs. Accumulation/Distribution Rating: A+
8. STATS ChipPAC (STTS)
Composite Rating: 95. Singapore-based provider of semiconductor testing services trounced fourth-quarter views. The stock may be forming a cup-with-handle base. STATS is the fourth-ranked stock in IBD’s Electronics-Semiconductor Manufacturing group. Accumulation/Distribution Rating: A
9. Alliance One International (AOI)
Composite Rating: 94. After losing 16 cents a share in 2006, the tobacco maker’s full-year 2007 profit is expected to rebound to 16 cents a share. Fiscal 2008 earnings are projected to swell 244% to 55 cents a share. Both estimates were recently revised higher. Accumulation/Distribution Rating: A
10. AsiaInfo Holdings (ASIA)
Composite Rating: 94. The China-based software firm reported Q4 profit of 7 cents a share, reversing a year-ago loss of 14 cents. It reduced operating expenses by 64% during the quarter. The stock was pulling back to its 10-day moving average. Accumulation/Distribution Rating: B
*The IBD SmartSelect Composite Rating combines all five SmartSelect Ratings into an all-in-one rating. Of the five, the Earnings Per Share Rating and Relative Price Strength Rating get the most weight; stocks’ percentage of their high price is also considered. Ratings are from 1-99, with 99 being the best.

Labels: AFSI, AOI, ASIA, BRCD, BVX, Hot Stocks, JADE, OFI, PTT, STTS, TSTC