5 PowerRatings Stocks for the Next 5 Days: TLT, RGLD, QSII, ALGT, FXY
Overbought conditions made upside difficult for stocks on Monday.
That said, the selling that we might have expected from the sort of overbought extremes that have built up over the past few days did not appear.
For example, the number of 1-rated stocks, stocks with our lowest possible Short Term PowerRating and among those least likely to advance in the near term, has actually grown from yesterday — even though the S&P, Dow and Nasdaq all finished lower.
This lets us know that the average stock is still at least a little overbought. Because of this, stocks remain vulnerable to a correction and lower prices.
At the same time, the selling that did occur has helped relieve some of the overbought pressure from the markets. This provides room for stocks to move higher before reaching those extremes once again.
The fact that we are seeing more stocks appear with Short Term PowerRatings of 8 suggests that there are opportunities for traders in the short term to pick up select stocks and ETFs that have already pulled back. These stocks and ETFs will be our first set of 5 PowerRatings Stocks for the Next 5 Days.
iShares Lehman Brothers 20+ Year Treasury Bond ETF
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TLT |
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PowerRating) Short Term PowerRating 8. RSI(2): 3.02
Royal Gold
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RGLD |
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PowerRating) Short Term PowerRating 8. RSI(2): 10.30
Quality Systems Inc.
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QSII |
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PowerRating) Short Term PowerRating 8. RSI(2): 5.91
Allegiant Travel Company
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ALGT |
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PowerRating) Short Term PowerRating 8. RSI(2): 1.94
Rydex CurrencyShares Japanese Yen Trust
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FXY |
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PowerRating) Short Term PowerRating 7. RSI(2): 2.77
Keep in mind that one of these stocks is actually a bond ETF and the other tracks a currency. As such, these two funds may behave a little differently from stock-based ETFs.
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