5 PowerRatings Stocks for the Next 5 Days: KUB, OSTK, SNHY, STEC, TNS
Stocks finished off their highs on Thursday. And the intraday pullback in the markets yesterday helped keep alive a number of pullbacks in more than a few otherwise strong stocks.
If it sounds like there’s always an excuse to be on the look out for stocks moving lower, then you’re right. Whether or not the broader markets are advancing or in retreat, there are always stocks in one sector or another, stocks of one size or another, that had been moving higher and are finally undergoing profit-taking.
And it is these profit-taking opportunities, largely, that we are looking to take advantage of in buying stocks that are trading above their 200-day moving averages, yet have sold off significantly in recent days.
Trading this way allows traders to participate in the natural rhythms that strong stocks experience. As buyers of weakness, we like strong stocks as much as the next trader. We simple believe – based on our research and experience as traders — that buying those strong stocks as they pull back had produced higher per trade win rates with fewer drawdowns than occur with many other approaches to short-term trading, such as breakout trading.
Just because we like to buy low, doesn’t mean we hate seeing stocks move higher. We just want to be buyers of those stocks BEFORE they start moving higher rather than afterwards.
Here are five strong stocks that are in pull back mode and, based on their Short Term PowerRatings, are likely to outperform the average stock over the next few days.
Kubota Corp
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PowerRating) Short Term PowerRating 9. RSI(2): 3.13
Overstock.com Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 5.78
Sun Hydraulics Corp
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PowerRating) Short Term PowerRating 9. RSI(2): 4.76
Stec Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 4.31
TNS Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 0.893
Of the five stocks here, there are a number of potentially good opportunities for traders to keep their eyes on over the next few days. The stand-out, given the fact that all five stocks have Short Term PowerRatings of 9, is clearly TNS Inc. with its 2-period Relative Strength Index of less than 1. This represents an extremely oversold condition and one that should lead the stock to be very responsive to any buying interest that develops in the stock.
That said, with three other stocks also having 2-period RSIs of less than 5, there are more than enough opportunities for short term traders among this set of 5 PowerRatings stocks for the next five days.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
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Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.