5 PowerRatings Stocks for the Next 5 Days: OC, NOA, VLTR, SXE, SKIL
There is nothing that the markets loathe more than uncertainty: financial, economic, or political. And as the various uncertainties unwind themselves — banks still stung by subprime mortgage lending excesses, an economy on the balance beam between strong growth and recession, and a divided political party many think is the odds on favorite to win in November — isn’t it great to be able to count on five stocks that are likely to outperform the average stock over the next 5 days?
If you are a short term stock trader, then our 5 PowerRatings Stocks for the Next 5 Days are for you. Twice a week we highlight a set of five stocks that our research, based on millions of simulated stock trades between 1995 and 2007, indicate should have an edge over the average stock over a 5-day period.
One thing you will notice about all of our 5 PowerRatings Stocks for the Next 5 Days is that they are not “breaking out.†Our approach to short term stock trading — an approach supported by our historical analysis — is to recognize when stocks are undervalued, or oversold, and to sell those stocks as they become overvalued — or even just accurately valued. In this sense, we are always bargain hunters, buying strong stocks that are experiencing pullbacks (and the deeper the pullback the better!), and then selling them as the rest of the market realizes their value and begins to bid those stocks higher.
Our Short Term PowerRatings, then, are largely a form of shorthand. We know through our research that the key ingredients in any stock are volume, momentum, trend and volatility. And in building our Short Term PowerRatings we have included aspects of all four of these ingredients. We know that it takes a certain amount of volume to make a stock more likely than another to move, especially in a short period of time. We know that it is better to catch an oversold stock as its momentum to the downside wanes, and that by buying dips in a trend, a trader — even a short term trader — can avoid making some of the most painful — though most common — mistakes that traders make.
And last we know that volatility is the spark that all short term stock traders need in their stocks: the ability of a stock to move by enough of an amount in a short period of time for the trader — as Trader Vic Sperandeo once put it — “to make the middle of a market’s move.â€
What our Short Term PowerRatings do is combine all of this information into a single figure, with stocks getting higher ratings of 9 or 10 for having the right volume, momentum, trend and volatility elements, other stocks getting low ratings of 1 for having none of the right ingredients, with the rest of the stocks somewhere in between.
All of the stocks in today’s report have Short Term PowerRatings of 8 or 9. Our research indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with PowerRatings of 9 have performed even better, besting the average stock by a more than 13 to 1 margin over the same time period.
Owens Corning
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OC |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.32
North American Energy Partners
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NOA |
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PowerRating) Short Term PowerRatings 9. RSI(2): 9.27
Volerra Semiconductor
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PowerRating) Short Term PowerRatings 8. RSI(2): 16.93
Stanley Inc.
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PowerRating) Short Term PowerRatings 8. RSI(2): 7.53
Skilsoft PLC
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SKIL |
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PowerRating) Short Term PowerRatings 8. RSI(2): 1.64