5 PowerRatings Stocks for the Next 5 Days: NEU LNN, UFPI, RES, TSN
One thing a down market almost always guarantees is a fresh set of pullbacks for traders who like to buy weakness and sell strength.
Many a wise guy has remarked on the idea that the financial markets are one of the few places where people are more eager to buy as prices go up. Black Friday sales after Thanksgiving can make a retail outlet’s year. Businesses have managed to make every holiday an opportunity to lower prices–and consumers typically have responded with huge demand every time.
But when it comes to stocks, the idea of buying stocks as they become cheaper–in the same way that we buy so many other things–comes a little difficult to some short term stock traders.
One of the more unique factors of our Short Term PowerRatings is how the ratings of stocks–in certain situations–actually improve the lower a stock gets. Why? Because if that stock is a strong stock, trading above its 200-day moving average, then our research tells us that the stock is more likely to outperform the lower it gets.
It sounds counter-intuitive, but it is actually a very commonsensical notion—