5 PowerRatings Stocks Under $15: STEI, MCCC, LZB, CRY, VPHM
As the fate of the Wall Street bailout package moves back to the House after successful passage in the Senate, traders are expressing more than a little pessimism by selling stocks with some emotion on Thursday. The Dow industrials, Nasdaq and S&P 500 are all down by more than 2% just one hour after the opening bell.
Stewart Enterprises Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 2.21
Still waters run deep, and still markets are often the prelude to markets that are not so still – as we are seeing in Thursday’s early trading. The past two days left us with markets that were neither overbought nor oversold, making it difficult for traders to discern a bias.
Mediacom Communications Corporation
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PowerRating) Short Term PowerRating 9. RSI(2): 8.52
This bias is critical – next to knowing whether or not stocks are trending upwards or trending downwards, knowing whether a given market has a surplus of buying pressure or a surplus of selling pressure is what tells us which sort of trading posture we should have. This alone helps remove many of the potential mistakes a trader might make, buying stocks that are already in demand, or selling stocks that the market has already turned against.
La-Z-Boy Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 2.88
Unless the selling we are seeing in the markets this morning is suddenly reversed, we are likely to get all the intraday weakness we need in order to take positions in high Short Term PowerRatings stocks as they pull back. This is an opportunity for traders who tend to only trade shallower pullbacks – for example, by using a 2% limit order under the previous close – to consider holding out for even deeper pullbacks, using limit orders that are 4% or even 6% below the previous close.
Cryolife Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 24.87
Waiting for deeper pullbacks does mean that traders will likely get fewer orders filled. But those positions that are filled stand a better chance of making a powerful move shortly afterward than those stocks that made shallower pullbacks. The farther the stretch away from the mean (essentially the 200-day moving average), the greater the “snap back” when buyers re-enter the market, taking advantage of bargain prices created by the last round of profit-taking.
Viropharma Inc.
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VPHM |
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PowerRating) Short Term PowerRating 8. RSI(2): 8.33
Of the five stocks in today’s report, four have Short Term PowerRatings of 9 and one has a Short Term PowerRating of 8. Our research into short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 have fared even better, besting the average stock over the same timeframe by a margin of more than 13 to 1.
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David Penn is Editor in Chief at TradingMarkets.com.