5 PowerRatings Stocks for the Next 5 Days: VLTR, SNS, SHOO, RL, SLAB

Despite the market’s march higher on Friday, we continue to see more 9-rated stocks in our Top 25 PowerRatings List than at any point since March of this year.

This is due in part to the large number of stocks that have crossed above their 200-day moving averages over the past several weeks as the markets have made their races toward their 200-day moving averages. It is the profit-taking in these stocks that is creating a potential for outperformance in a number of stocks going forward.

Today’s report includes five stocks — all with PowerRatings of 9. Our research into short term stock price behavior indicates that stocks with PowerRatings of 9 have outperformed the average stock by a margin of more than 9 to 1 based on our most recent testing. This, combined with taking positions on intraday weakness, makes our high PowerRatings stocks the kind of stocks that short term traders should be on the lookout for.

Volterra Semiconductor
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VLTR |
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PowerRating of 9. RSI(2): 10.87

The Steak ‘n’ Shake Company
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SNS |
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PowerRating of 9. RSI(2): 16.42

Steve Madden Ltd.
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SHOO |
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PowerRating of 9. RSI(2): 15.24

Polo Ralph Lauren
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RL |
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PowerRating of 9. RSI(2): 9.81

Silicon Laboratories Inc.
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SLAB |
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PowerRating of 9. RSI(2): 4.76

The fact that the S&P 500, Nasdaq and Dow 30 continue to ramp higher suggests that these stocks that are already pulling back may have further to fall before they reach their oversold bottoms. As such, traders may want to consider using wider as opposed to narrower limit orders — looking for positions closer to 5% below the previous close as opposed to a more aggressive 2%.

Not only have we found that stocks that make greater pullbacks tend to outperform stocks that make more shallow pullbacks, but also using a wider limit order will help short term traders take better, less expensive positions in stocks as sellers continue to move the broader market lower.

Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!