5 PowerRatings Stocks for the Next 5 Days: COCO, CECO, GMCR, PALM, LNCE
Stocks sold off over the course of the first trading day of the week, creating even more oversold conditions in market indexes like the S&P 500’s SPY
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PowerRating) which now has a Short Term PowerRating of 7.
There are no 9-rated stocks right now. And the ranks of 8-rated stocks are not great. From a stock-picking perspective, despite the fact that the Short Term PowerRatings are being upgraded from 6 to 7, this is not the ideal environment for stocks. There are a few oversold stocks, five that I will include in today’s report, that short term traders may want to keep an eye on — especially if we see more determined (or more panicked) selling in the near term.
Two of the stocks in today’s report are stocks we have been watching for the past few days: Corinthian Colleges
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PowerRating). Both stocks ended Monday with Short Term PowerRatings of 8 and have developed 2-period RSIs of 28.34 and 30.20, respectively. These are low 2-period RSIs for ETFs, but when it comes to stocks, we need to see 2-period RSIs in the single digits.Â
Stocks that might have greater promise for upside sooner include Palm Inc.
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PowerRating). Not only do all three stocks have Short Term PowerRatings of 8, but also all three have Short Term PowerRatings of less than 10. The most extremely low 2-period RSI is to be found in shares of PALM, which developed a 2-period RSI of 1.26 as of Monday’s close.
Remember that low, 2-period RSI values, especially those of 2 or less, have tended to indicate a likelihood of outperformance in the near term. Combining low 2-period RSI values with high Short Term PowerRatings stocks is one of the major edges short term traders can have in spotting and taking advantage of oversold opportunities in the market.
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