5 PowerRatings Stocks for the Next 5 Days: GRMN, CAT, AXP, HON, DISH
Monday’s sell-off in stocks may represent a major opportunity for PowerRatings traders. When markets begin moving lower above the 200-day moving average – as the Dow, S&P 500 and Nasdaq all did to start the week – we know it is time to start becoming interested in stocks again.
Our stock rating system, PowerRatings, helps short term traders stay on the side of the markets where the historical edges are greatest. Contrary to popular opinion, we have quantified the fact that those edges are not in buying stocks as they move to new, short-term highs, but in focusing on them as they move to new, short-term lows.
These edges, incorporated into our PowerRatings system, makes possible for traders to spot which stocks are most likely to move higher in the short term and which are more prone to underperform their peeers.
Right now, short term traders have the pick of the litter when it comes to oversold stocks. Here are 5 with PowerRatings of 9 or 10 that traders should keep an eye out for over the next few days. Any significant further weakness (read our PowerRatings trading primer by Larry Connors, How to Find the Best Stocks to Trade Every Day) could represent an excellent high probability opportunity in the short term.
Garmin Ltd.
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PowerRating) has a PowerRating of 10. The stock has closed lower for three days in a row above the 200-day and has had a 2-period RSI of less than 5 for the past two trading days.
9-rated Caterpillar
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PowerRating) lost more than 4% on Monday as it closed lower for a third consecutive trading day. As a result, the stock is at its most oversold since breaking out above its 200-day moving average one month ago.
Here are a set of 8-rated stocks that may be worth watching should weakness continue into Tuesday.
American Express
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PowerRating) broke down below a short-term trading range in losing more than 4% on Monday.
Closing at its lowest levels in the past 10 days, Honeywell
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PowerRating) saw a great deal of volatility before finishing the day off by more than 2% above its 200-day moving average.
For six days in a row sellers have dominated buyers in shares of Dish Network Corporation
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DISH |
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PowerRating). The stock closed at its lowest levels in 15 days on Monday after dropping by more than 5%.
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!
David Penn is Editor in Chief at TradingMarkets.com.