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Looking for stocks that are likely to outperform the average stock over the next few days? Our 5 PowerRatings Stocks for the Next 5 Days column is a great place to start!
Recent selling has driven an even greater number of stocks into oversold territory, helping generate higher and higher PowerRatings. For the first time in several months, all 25 stocks in our Top 25 PowerRatings Stocks roster have PowerRatings of 10. This is an incredible testament to the degree selling pressure currently weighing on stocks trading above their 200-day moving averages.
Visa Inc. (V | Quote | Chart | News | PowerRating) ended Tuesday with a 2-period RSI of barely more than 3. Down three out of the past four trading days, shares of Visa dropped another 4% yesterday as they retreat toward their 200-day moving average.
OptionsXpress (OXPS | Quote | Chart | News | PowerRating) is another stock that has been pulling back aggressively in recent days.
Having closed lower for the past five days in a row, OXPS is among the more oversold stocks in today’s report. With a 2-period RSI of less than 1 as of Tuesday’s close, OXPS’s 2-period RSI has been below 10 for five consecutive trading days.
If a stock could be even more oversold than OXPS, then that stock would have to look something like Jo-Ann Stores (JAS | Quote | Chart | News | PowerRating), which has closed lower for a whopping 8 trading days in a row. Suffice to say that JAS is extremely oversold above its 200-day moving average with a closing 2-period RSI on Tuesday of 0.185.
CTRIP.com Ltd. ADRS (CTRP | Quote | Chart | News | PowerRating) is another of our oversold, 10-rated stocks.
CTRP has closed down for four trading days in a row, earning a 2-period RSI of less than 6 in the process. The stock is still several points above its 200-day moving average despite its already low 2-period RSI.
Last but not least, if you’ve not had your fill of oil stocks, Pyramid Drilling Company (PDO | Quote | Chart | News | PowerRating) is an oversold energy stock that may be worth a second glance. Having closed down for the past three days and for seven out of the past eight, PDO has earned a 2-period RSI of just above 2 as of the Tuesday close.
Recall that stocks with PowerRatings of 10 - our highest rating - have outperformed the average stock by a margin of more than 14 to 1 according to our historical backtesting going back to 1995. When combined with trading strategies using limit orders and dynamic exits, these stocks have been among the best opportunities for short term traders looking for trading candidates with a real, quantified edge.
Does your stock trading need a tune-up? 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! |
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
David Penn is Editor in Chief at TradingMarkets.com.
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