5 PowerRatings Stocks for the Next 5 Days: RGLD, CHG, ICFI, ULBI, STSI

  • January 12, 2009
  • David Penn

Stocks sold off on Monday, leaving the Dow, Nasdaq and S&P 500 increasingly oversold below the 200-day moving average.

The fact that the major markets are trading below the 200-day moving average reminds us that we are not in a bull market (as if we didn’t know).  But the fact that stocks are increasingly oversold tells us that buyers may not be long in returning to the markets.

We saw this shift yesterday, with the increase in the number of 9-rated stocks in our Top 25 PowerRatings Stocks roster.  Over the past three days including Monday’s close, that number has doubled from three to six.

Click here to learn how to trade stocks using our Short Term PowerRatings!  The highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days!

This in and of itself is not a buy signal for traders to rush into stocks.  But what our Short Term PowerRatings are suggesting is that the time to be short, in the near term, is at or near an end, and for those who are still trading to the long side in this bear market, opportunities to buy deep, meaningful pullbacks may be soon in coming.

Some of the stocks I pointed out over the past week remain on sale — or have become even less expensive.  I have listed those stocks again below and will continue to list them as long as their Short Term PowerRatings remain at 8 or better.

Royal Gold
(
RGLD |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 9.  RSI(2): 2.18

CH Energy Group
(
CHG |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8.  RSI(2): 37.60

To their ranks, I’ll add another three stocks that short term traders may want to keep an eye on for further weakness in the days to come. 

ICF International Inc.
(
ICFI |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 9.  RSI(2): 1.52

UltraLife Corporation 
(
ULBI |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 8.  RSI(2): 6.09

Star Scientific Inc. 
(
STSI |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 8.  RSI(2): 2.81

Recall that with Short Term PowerRatings of 8, these stocks belong to that category of stocks which have outperformed the average stock by a margin of more than 8 to 1 after five days according to our research going back to 1995.

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