5 PowerRatings Stocks for the Next 5 Days
Stocks fell into a midday trough and rallied late, but the major market indexes failed to cross over into the green on Tuesday.
As PowerRatings traders we are in more or less the same situation as we were in 24 hours ago: looking to buy high Short Term PowerRatings stocks that are trading above their 200-day moving averages. We have had fewer and fewer of these stocks to choose from as the bear market has taken a growing number of stocks below the 200-day moving average and kept them there. But these stocks — when they appear — remain our best bets for any short term trades to the upside for now.
What about trades in the direction of the longer term trend, in the determinedly downward direction of the bear market? Remember that our research shows that the edge for short term traders lies in buying weakness and selling strength (the exact opposite of how long term traders, such as the Turtle traders, who bought strength and sold weakness).
So in order for us as short term traders to take advantage of the downward trend, we need to wait for stocks to become “strong†— overbought in this case — in order to sell them short. Our goal, of course, will be to cover or “buy†once these overbought stocks and ETFs have sold off and become weak.
That said, we have found it more productive to use short ETFs for taking advantage of overbought conditions in stocks. Here, our Short Term PowerRatings have been just as helpful, with high Short Term PowerRatings in short ETFs signaling potentially superior trading opportunities in the short term.
Pegasystems Inc.
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PowerRating) Short Term PowerRating 10. RSI(2): 1.60
Emergent Biosolutions Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 2.90
DRDGold Ltd.
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PowerRating) Short Term PowerRating 9. RSI(2): 1.06
Wyeth Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 29.25
Aqua America
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PowerRating) Short Term PowerRating 8. RSI(2): 25.95
For now, there are a few high Short Term PowerRatings stocks that bear mentioning, in part because the extremely oversold condition of the markets (the SPDRS S&P 500 ETF
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PowerRating) again has a Short Term PowerRating of 8) makes it all the more likely that an oversold bounce will occur. And stocks like these with high Short Term PowerRatings may be among the best ways of taking advantage of that upside.
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.