5 PowerRatings Stocks for the Next 5 Days: DROOY, RGLD, IAU, GLD, DLTR
I don’t know how the weather is in your world, but in the high probability trading world of PowerRatings, it’s raining gold stocks.
From a pair of gold stocks sharing the only two 9 PowerRatings in our database to a number of 8-rated mining names scattered throughout the top 25 PowerRatings stocks, it is clear that a sector-wide profit-taking is underway in the gold mining sector.
It wasn’t too long ago when gold was being hailed as the one commodity that was holding up as the other commodities were plunging. Now, as other commodities have advanced over the past month, it is time for traders to take their gold chips to the ticket window.
This is how opportunities develop. Markets that are in demand eventually become top-heavy as more and more buyers pile in. Those with the most discipline, who bought when markets were lowest, are first to exit, as the first signs of strength bring their positions into profitability. This, by the way, is the PowerRatings approach to trading: buying weakness and selling strength.
Other traders sense growing weakness and take profits, helping markets move lower still. And as more and more traders sell, from those taking dwindling profits to those cutting losses, markets that were “must buy” only days or weeks ago suddenly become “must sell” markets. And often this is little more than a function of too many buyers leading to selling and then too many sellers leading to buying: overbought, sell-off, oversold, rally, and so on.
DRDGold Ltd. ADRs
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DROOY |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.865
Royal Gold Inc.
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RGLD |
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PowerRating) Short Term PowerRating 8. RSI(2): 7.00
iShares Comex Gold Trust
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IAU |
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PowerRating) Short Term PowerRating 8. RSI(2): 2.98
SPDRS Gold Shares ETF
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GLD |
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PowerRating) Short Term PowerRating 8. RSI(2): 3.22
Cadence Pharmaceuticals
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CADX |
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PowerRating) Short Term PowerRating 8. RSI(2): 12.81
Right now, gold stocks appear to be in sell-off mode in a group which means there is a growing likelihood that the next round of buying opportunities will include gold stocks among them. If you decide to trade these stocks, be wary of being overloaded in one sector. Even for a short term trade, one or two gold stocks at a time are plenty. For those who prefer ETFs, I have included a pair of gold ETFs, as well.
And if you don’t want anything whatsoever to do with gold, Cadence Pharmaceuticals is an interesting 8-rated stock with a dollar price under $10 and a 2-period RSI that has plunged from more than 97 to under 13 in three days.
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!