5 PowerRatings Stocks for the Next 5 Days
Stocks rallied into the close again on Thursday, creating increasingly overbought conditions below the 200-day moving average and sending many short ETFs below their 200-day moving averages.
As I have been suggesting for the past few days, continued aggressive buying has boosted stocks — many of which are increasingly overbought below the 200-day moving average. But the advance has also sent many short ETFs below our trading “line in the sand†of the 200-day moving average. This means, in part, that many of these short ETFs will no longer offer us the opportunity to take advantage of overbought conditions has we have so successfully over the past several months.
The upside, of course, is that should this trend continue, we are likely to start seeing a growing number of stocks trading above their 200-day moving averages. Again, as I have alerted traders to this potential change in strategy, this will mean a switch in focus back to high Short Term PowerRatings stocks and away from high Short Term PowerRatings ETFs.
In some ways, if this does come to pass, it couldn’t happen at a better time. We have just published the results for our Short Term PowerRatings in a new article at TradingMarkets.com. Go check out the article for yourself but, for now, suffice to say that stocks with high PowerRatings, stocks with Short Term PowerRatings of 8, 9 or 10, continued to outperform the average stock in 2008.
Again, be sure to read the article for yourself. For short term stock traders, our higher Short Term PowerRatings stocks were consistently superior places to look compared to the average stock — and this in a year in which a large amount of money, including money managed by professionals, was lost in the stock market.
For now, there are still a number of short ETFs still trading above their 200-day moving averages that short term traders may want to keep an eye on. For traders looking more toward stocks than ETFs, I have included a pair of stocks in today’s roster, as well.
ProShares Short S&P 500 ETF
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PowerRating) Short Term PowerRatings 8. RSI(2): 15.08
ProShares MSCI EAFE Trust ETF
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PowerRating) Short Term PowerRating 8. RSI(2): 21.44
Tower Group L.P.
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PowerRating) Short Term PowerRating 7. RSI(2): 20.91
Duncan Energy Partners
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PowerRating) Short Term PowerRating 7. RSI(2): 11.04
Gammon Gold Inc.
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PowerRating) Short Term PowerRating 7. RSI(2): 5.45
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!