3 PowerRatings Stocks Under $10 for Traders: CAAS, THQI, SOLF
With stocks poised to follow four days in a row of gains with a fifth day on Monday, the ranks of high PowerRatings stocks is smaller than it has been in several days. This means that PowerRatings traders are back on the sidelines, playing the waiting game as overbought conditions become even more overbought.
These are the moments in which less experienced, less disciplined short term traders can become vulnerable to distraction. By nature, traders are never more bullish than they are after a market has rallied for consecutive days. But this emotional response to market behavior – as our research into short term stock prices movement going back to 1995 has made clear – can be the road to ruin.
For more tips on how to trade PowerRatings stocks, read Larry Connors’ strategy primer: How to Find the Best Stocks to Trade Every Day.
Rather than focusing on those stocks that are at or near new, year-to-date highs, PowerRatings traders should remain vigilant for those stocks that have not yet caught the eye of an increasingly aggressive, increasingly buy-first-ask-questions-later trading and investing community. Many of these high PowerRatings stocks are less known (the highest rated stock in the Dow, for example, only has a PowerRating of 6). But in their obscurity may lie a significantly undervalued trading opportunity – revealed through the stocks exceptionally high PowerRating.
In addition to having high PowerRatings, all of the stocks in today’s report have a dollar cost of less than $10.
9-rated China Automotive Systems
(
CAAS |
Quote |
Chart |
News |
PowerRating) has been in a trading range for the past several days, and plunged lower on Friday by well over 2%.
THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating) has a PowerRating of 8 and has been moving dramatically lower for nearly a month. After falling for five days in a row last week, the stock has settled into a short, triangular trading range with a flat bottom and lower highs. THQI is now one point from its 200-day moving average.
Another stock that has been diving lower over the past several days is the 8-rated Solarfun Power Holdings
(
SOLF |
Quote |
Chart |
News |
PowerRating). Down more than 2% on Friday, SOLF is also treading water just above its 200-day moving average.
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!