5 PowerRatings Stocks for the Next 5 Days: SNS, SLAB, RT, HOTT, MVL
The move higher in stocks on Thursday helped reduce oversold conditions in stocks — and took a few of the higher PowerRatings stocks off the table. But there still remain more top rated stocks – stocks with PowerRatings of 9 or 10 — than there has been all year. And for traders who buy stocks on pullback, this suggests a significant possible opportunity.
First a quick note. All five of the stocks from my last column (“PowerRatings Review: At the Pullback’s End”) advanced on Thursday. Two of them — Volterra Semiconductor [VLTR] and Steve Madden Ltd. [SHOO] — both closed above their 5-day moving averages. The other three — The Steak ‘n’ Shake Company [SNS], Silicon Laboratories [SLAB] and Ruby Tuesday [RT] — were also higher. But have not yet closed above their 5-day moving averages — a show of strength that we use as an exit signal in our testing and trading.
All three remain worth watching. SNS has a PowerRating of 8. SLAB has a PowerRating of 7 and RT has a PowerRating of 9. With even 7-rated stocks outperforming the average stock by a margin of more than 3 to 1 after five days based on our historical testing, all three are stocks that should continue to attract buyers in the short term.
To these three I will add two more stocks to round out the 5 PowerRatings Stocks for the Next 5 Days. Both of these stocks have PowerRatings of 10 — our highest rating — and have outperformed the average stock by a margin of more than 14 to 1 after five days.
Hot Topic Inc. [HOTT]. PowerRating of 10. Down three days in a row and five out of the last six, HOTT is now more oversold than at any point in the past year.
Marvel Entertainment [MVL]. PowerRating of 10. Also down for three consecutive trading days, MVL has had a 2-period RSI of less than 5 for the past two days.
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!