5 PowerRatings Stocks for the Next 5 Days: SXE, RLI, JOSB, FFH, APSG
Stocks fought off a major intraday sell-off to close higher on the day Thursday afternoon.
As I have been noting for days, stocks have been driving deeper and deeper into oversold territory. And while it is true that oversold often becomes oversold, it is no less true that oversold extremes are met, sooner or later, with buying reactions.
Perhaps we saw the beginning of such a reaction on Thursday. Both the S&P 500 and the Dow industrials remain extremely oversold, with 2-period RSIs in the single digits (the Nasdaq, by contrast, has a 2-period RSI of more than 40). This would provide more than enough “room†to the upside should sellers decide to continue their move to the sidelines.
Of the stocks I have mentioned over the course of the week, a number of them are no longer oversold and should be avoided for new trades. These include stocks like Royal Gold
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PowerRating) CH Energy Group
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PowerRating), and ICF International
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PowerRating), all of which responded to oversold conditions and high Short Term PowerRatings with strong bounces, particularly on Thursday.
As of today, the number of 9-rated stocks has declined. There are however a number of 8-rated stocks with low, 2-period RSI values that traders may want to keep an eye on over the next several days. With Short Term PowerRatings of 8, all five of these stocks belong to that category of stocks that have outperformed the average stock by a margin of more than 8 to 1 after five days. These are the kinds of stocks that traders should be focused on, as markets still trading in oversold extremes continue to attract buyes.
Stanley Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 5.67
RLI Corporation
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PowerRating) Short Term PowerRating 8. RSI(2): 6.95
Jos A. Bank Clothiers Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 28.38
Fairfax Financial Holdings Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 6.78
Applied Signal Technology Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 15.89
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