5 PowerRatings Stocks for the Next 5 Days: PALM, OTEX, WNR, MYGN, ARNA
The test of the November lows that we have been waiting for arrived on Thursday, the day before options expiration as markets that mostly meandered all day sold off into the close.
The dramatically oversold conditions in stocks over the past few days have increasingly produced high Short Term PowerRatings stocks. While many of these stocks are trading below the 200-day moving average and thus ineligible for trades to the upside, there are a few — including a growing number of 9-rated stocks — that are above their 200-day moving averages and, for short term traders whose trading strategy involves buying low and selling high, may represent potential opportunities in the near term.
Palm Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 8.61
Open Text Corporation
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OTEX |
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PowerRating) Short Term PowerRating 9. RSI(2): 1.45
Western Refining Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 8.97
Myriad Genetics Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 6.61
Arena Pharmaceuticals
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ARNA |
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PowerRating) Short Term PowerRating 9. RSI(2): 10.43
Note that all five stocks in today’s report have Short Term PowerRatings of 9. Our research into short term stock price behavior, going back more than a decade, indicates that stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days.
The last time there were as many 9-rated stocks in our Top 25 PowerRatings Stocks roster was in mid-January, when that number was identical to the current one. If you will recall, stocks had become extremely oversold in mid-January as the rally from mid-November topped in the first half of January and a sharp correction ensued..
There was no major rally after those mid-January extremes were reached. Stocks moved fitfully, slightly more upward than sideways, but only slightly. And it is no less possible for the current oversold extremes to fail to produce a significant bounce. However on a stock for stock basis — rather than focusing on the entire stock market — there is always room for potential outperformance. And with high Short Term PowerRatings and low 2-period RSIs as our guide, we believe we have the best chance of catching that outperformance just before it begins.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
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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.