Read Larry Connors' blog – Short Term Trading Strategies
| TradingMarkets.com
Stocks are up modestly in the first few hours of trading Thursday morning. And while a number of high PowerRatings stocks have taken the opportunity to rally from oversold conditions (Dr. Reddy's Laboratories (RDY | Quote | Chart | News | PowerRating), up more than 2% an hour into the trading day is one example), there are still a number of high PowerRatings stocks that are still in oversold territory. These are the stocks that short term traders should be focused on over the next few days.
If you like big pullbacks, then you will love Leap Wireless International (LEAP | Quote | Chart | News | PowerRating). This 8-rated stock has closed lower for four out of the past five days and is down big again on Thursday by more than 5% little over an hour after the bell. With a most recent closing 2-period RSI of less than 2 - an extremely low reading - LEAP's 2-period RSI on Thursday has slipped below 1.
If the correction in LEAP makes you too anxious, but you still are interested in telecommunications stocks that are pulling back, then consider a pullback in a stock like Novatel Wireless Inc. (NVTL | Quote | Chart | News | PowerRating). Down four days in a row, shares of NVTL have become very oversold in recent days, with its 2-period RSI dropping from more than 70 to less than 7.d
Also down for four days in a row - though at the opposite end of the dollar price spectrum - is First Solar (FSLR | Quote | Chart | News | PowerRating). Closing at more than $178 on Wednesday, FSLR has continued to pullback ever since making a short term overbought peak on Friday the 29th. FSLR has an intraday 2-period RSI of less than 19.
All three stocks in today's report have PowerRatings of 8. Stocks with PowerRatings of 8 have ouperformed the average stock by a margin of more than 6 to 1 after five days according to our historical testing.
Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!
David Penn is Editor in Chief at TradingMarkets.com.
Want updates on our latest articles? Have something to say to David Penn or the staff at TradingMarkets? Follow David on Twitter at @Penn_TM and TradingMarkets at @Trading_Markets.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
