5 PowerRatings Stocks for the Next 5 Days: SINT, LPHI, JOSB, SF, UST
Sellers again overwhelmed buyers on Thursday after a relatively inconclusive trading session on Wednesday.
I am continuing to see a high ratio of top rated stocks in our Top 25 PowerRatings stocks. This isn’t surprising, given the sell-off the market has experienced over the past several days. The S&P 500 is now down for seven consecutive days — as are the Dow industrials. The Nasdaq Composite is down seven out of the past nine.
But what is worth remembering is that these top rated stocks — the 10-rated stocks — as well as our 9-rated stocks, which have outperformed the average stock by a margin of more than 13 to 1 after five days, are all trading above their 200-day moving averages.
This means, according to our research including the bear market declines of 2001 and 2002, that these stocks are all potential trading candidates to the long side.
How should traders treat these stocks? There’s no denying that there is a great deal of corporate risk in the market — corporate risk meaning the likelihood that any one corporation will have disproportionately high volatility compared to the rest of the market. And after a day when the Dow has fallen by more than 600 points, traders to not need to be reminded of market risk.
One recommendation is for traders to reduce their trading size. Take a 25% smaller trading size — or even cut it in half. The volatility that we are seeing will more than make up for the smaller position sizes that may be warranted given the way the market has behaved over the past several days. If the trades do not work out, then losses will have been minimized. And if markets rally and you are able to take profits by selling into strength, then the likely size of any near-term bounce will allow those smaller position sizes to go a longer than usual way.
Si International
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SINT |
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PowerRating) Short Term PowerRating 10. RSI(2): 0.033
Life Partners Holdings Inc.
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LPHI |
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PowerRating) Short Term PowerRating 10. RSI(2): 0.227
Jos. A Bank Clothiers Inc.
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JOSB |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.778
Stifel Financial Corporation
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SF |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.44
Ust Inc.
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UST |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.945
Of the five stocks in today’s report, three have Short Term PowerRatings of 9 and two have Short Term PowerRatings of 10. Stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days. Stocks with Short Term PowerRatings of 10 have performed even better, outperforming the average stock by a margin of nearly 17 to 1 after the same short-term timeframe.
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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