Interesting stock picking approach

Power Options has as a definable criteria for their searches the ability to define a range of broker recommendations to filter stocks for possible options strategies. Even their default searches use the recommendations ranges.

You have to decide whether to use it contrarian or not.

To me it is mostly contrarian in the longer time frame. If a stock has a low rating then there is a lot of potential for upgrades and vice versa. The contrarian view also holds that the raters are probably manipulators so you need to figure out what they are doing and then take appropriate action.

Power options also has a two weeks free trial for free.
 
Jim Rogers said that when he worked with Soros one of their major strategies was to buy sell recommendations.
 
Quote from jficquette:

They don't issue sell ratings until they are looking to buy. The sell rating is intended to scare the last longs out. When they feel that they are out, they start buying. When they issue buy ratings they are looking to sell out. They are trying to scare the last shorts out and to create liquidity to sell into without killing the stock.

Witness bac a few weeks ago. One of the large brokers came out with a sell rating about 10 minutes before the market opened. When the stock did not open poorly they jumped in and the stock is stilling going! On bac I caught those crooks red handed.

Think about it, what other reason would they even put out ratings other then to manipulate the market? The only reason we have a market is because a miniorty of partipants can consistently fleece the majority.

Sorry, I know that this pessimistic but this is just my opinion. I have no facts to back it up.

John
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Exactly right.

The big banks are not in the charity business.
 
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