5 PowerRatings Stocks for the Next 5 Days: CPKI, DRI, SHW, SPLS, CTAS
TradingMarkets founder and developer of PowerRatings Larry Connors wrote in one of his recent Daily Trading Lessons:
“When I wake up in the morning, I’m not thinking about breakouts, GM’s pending bankruptcy, trend lines, forex, or Fibonacci retracements. If I did, it would be chaos. I think about one thing: how overbought and oversold the markets are and where the best statistical edges are for the next 3-5 days.”
It is this kind of focus that can help anyone become a successful short term trader. What is especially helpful about PowerRatings is that they simplify the process even further. Short term traders using PowerRatings don’t have to search for those best edges. They are printed right next to the stocks that make up our 8-, 9- and 10-rated, highest PowerRatings stocks.
Strength on Thursday helped bring two of the stocks from my last column, “PowerRatings Review and Outlook: EAT, DRI, CPKI” above their 5-day moving averages intraday. However profit-taking late in the session overwhelmed both Brinker International
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PowerRating) and neither was able to close above its 5-day moving average.
Similarly under the sway of sellers is California Pizza Kitchen
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PowerRating), which has now closed lower for five consecutive sessions above the 200-day moving average.
Both DRI and CPKI will remain on our “watchlist.” Both stocks still have PowerRatings of 8, putting them in that cohort of stocks that have historically outperformed the average stock by more than 8 to 1 after five days. Buying remained strong enough in EAT to drop the stock’s PowerRating to 6. Brinker International may need to move lower before it moves higher.
There is a lot of profit-taking in restaurants, with Chipotle Mexican Grill
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Sherwin-Williams Company
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PowerRating). PowerRating of 8. Sherwin-Williams has completed three consecutive down closes above 200-day moving average. The stock’s cumulative 2-day, 2-period RSI also reveals the stock to be significantly oversold in the short term.
Staples Inc.
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PowerRating) PowerRating of 9. Down four days in a row, 9-rated Staples belongs to that category of stocks that have historically outperformed the average stock by a margin of more than 13 to 1.
Cintas [CTAS||CTAS]. PowerRating of 8. CTAS has closed lower for three out of the past four trading days. Although closing higher, a failed intraday rally helped bring the stock’s 2-period RSI down into the single digits.
Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!