5 PowerRatings Stocks for the Next 5 Days: QCOR, LG, VOLC, COCO, VMC

  • December 18, 2008
  • David Penn

Both the S&P 500 and the Dow industrials closed lower for a second consecutive day on Thursday.

Our Top 25 Short Term PowerRatings Stocks roster is always a good way to get a sense of the market.  Are there a large number of high Short Term PowerRatings stocks — the stocks our research has indicated have outperformed the average stock by a margin of more than 8 to 1 after five days?  This lets us know that stocks in general are oversold, and that there are likely opportunities to buy.

During the bear market, we have noticed opportunities to take advantage of overbought markets.  Rather than sell short individual stocks, we have focused on short or inverse exchange-traded funds, which can be bought and sold like stocks.  And here, our Short Term PowerRatings have been a great tool as short or inverse ETFs earning high Short Term PowerRatings of 8, 9 or 10 have alerted us to opportunities to sell (which we do by buying short ETFs).

The selling has made stocks in general oversold.  In fact, based on the 2-period RSI, the S&P 500 is as oversold now as it was when it made its first pullback off the November lows.  Of course, there’s no guarantee that stocks will reverse their current slide and begin moving higher now and they did then.  But one thing our research tells us about markets is that they move back and forth between overbought and oversold conditions.  And the more oversold they become, the more likely they are to move higher in the short term.

Here are the few stocks with Short Term PowerRatings of at least 7 that short term traders may want to keep an eye on over the next few days.  Intraday weakness — and an upgrade in their PowerRating to 8 or better — could be an opportunity over the near term.

Questcor Pharmaceuticals
(
QCOR |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 8.  RSI(2): 30.86

Laclede Group
(
LG |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 8.  RSI(2): 8.11

Volcano Corporation 
(
VOLC |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 7.  RSI(2): 18.62

Corinthian Colleges Inc. 
(
COCO |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 7.  RSI(2): 15.68

Vulcan Materials Corporation 
(
VMC |
Quote |
Chart |
News |
PowerRating)  Short Term PowerRating 7.  RSI(2): 31.24 

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