5 PowerRatings Stocks for the Next 5 Days: USMO, KNL, SUNH, TIN, SHOO
Stocks reversed Friday’s gains, as overbought conditions in a bear market once again proved too difficult to surmount in the short term.
Sooner or later, stocks will become overbought and stay that way long enough for markets like the S&P 500 and the Nasdaq Composite to rally above their 200-day moving averages, pull back without closing below those 200-day moving averages, and resume their advance in what will then likely be confirmation of another bull market in stocks.
But until that time, when stocks that are trading below their 200-day moving average become overbought, it is time for swing traders to stop thinking about buying and start thinking about selling.
This is true whether a trader is wondering whether or not to take profits, or if a short sell trade is warranted. For swing traders who buy stocks when they are weak and unwanted, the only obligation is to sell them when they are strong and in demand once again.
It is too early to say if the current pullback will result in a sizable number of trading opportunities. But we know that among those stocks that declined on Monday, there are a number that are still good stocks, still trading above their 200-day moving averages, and increasingly vulnerable to the upward pressure of buyers re-entering these markets that were often only just recently ascending. These are the high Short Term PowerRatings stocks that we are on the lookout for, and which have become all the more worth noting in the wake of Monday’s sell-off.
USA Mobility Inc.
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USMO |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.61
Knoll Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 5.17
Sun Healthcare Group
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SUNH |
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PowerRating) Short Term PowerRating 8. RSI(2): 2.33
Temple Inland Inc.
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PowerRating) Short Term PowerRating 7. RSI(2): 14.20
Steve Madden Inc.
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SHOO |
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PowerRating) Short Term PowerRating 7. RSI(2): 16.07
As always, focus on the highest Short Term PowerRatings stocks, which have the greatest historical edge compared to the average stock. With regard to the stocks with Short Term PowerRatings of 7, swing traders should look for those stocks with the lowest, 2-period RSI values as a way of spotting the most oversold opportunities that are most likely to respond to a return of buying pressure.
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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