5 PowerRatings Stocks for the Next 5 Days: STAR, NSH, GFI, BR, CERN
A few weeks ago, in one of his daily Trading Lessons, Larry Connors asked the question: “Do you want the market to go up or down?”
I thought about that refrain on Monday. The market had rallied for weeks after months of terrible economic and financial news. And as Morgan Stanley called it the “steepest rally” since the 1930s as part of a bearish note on the near-term, buy-side traders who had been starved for profits for months, took some chips off the table. A lot of chips. Meanwhile, brows furrowed. Teeth gnashed.
“Do you want the market to go up or down?”
As PowerRatings traders, we have a different attitude from other traders when stocks are falling. We know that markets that pullbacks produce stocks with high Short Term PowerRatings, and stocks with high Short Term PowerRatings — according to our research going back to 1995 and published through 2008 — outperform the average stock by significant margins.
So when we see a market that has been rallying for days suddenly pull back, we know that there are likely stocks that have been rallying for days and are now pulling back as traders take profits. The best of these stocks, earn Short Term PowerRatings of 8, 9 or even 10 — our highest rating of stocks that have historically outperformed the average stock by nearly 17 to 1 after five days.
Monday’s 250+ point decline in the Dow has created a variety of stocks that are just now beginning to make their pullbacks. As such, these stocks all have Short Term PowerRatings of 8. Our testing suggests that waiting for these stocks to show additional weakness — such as a further intraday pullback of 3% or more — is often a way to get some of the greatest edges out of trading PowerRatings stocks in the short term.
Starent Networks Corporation
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STAR |
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PowerRating) Short Term PowerRatings 8. RSI(2): 13.07
Nustar Group Holdings LP
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NSH |
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PowerRating) Short Term PowerRatings 8. RSI(2): 6.86
Gold Fields Ltd. ADRs
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GFI |
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PowerRating) Short Term PowerRatings 8. RSI(2): 5.11
Broadridge Financial Solutions
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BR |
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PowerRating) Short Term PowerRatings 8. RSI(2): 15.65
Cerner Corporation
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CERN |
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PowerRating) Short Term PowerRatings 8. RSI(2): 21.14