5 PowerRatings Stocks for the Next 5 Days: VPHM, TSYS, THFF, SHOO, ROCK
What matters more: the fact that the Dow ended the day down more than 300 points or the fact that the Dow was down on an intraday basis by more than 800 points?
This is the glass half-full, glass half-empty scenario facing traders on what used to be called Turnaround Tuesday. And while traders are often right to ignore the financial media punditry’s inevitable claim that a market that is down 800 and finishes”only” down 300 is a market on the mend, it is worthwhile to remember just how we got into the position we are in today.
Stocks were advancing for much of Friday before, shortly after the House of Representatives voted to approve the financial bailout package, they reversed and began to move lower. And lower is how stocks finished on Friday, leaving us with a market that was significantly oversold going into Monday.
While an oversold market on one day often leads to gains on the following day, it is worth remembering that the relatively arbitrary end of trading on Friday did not necessarily provide the opportunity for everyone who wanted to sell on Friday, to sell. Those were the people who were selling in earnest on Monday — especially early in the day.
As those oversold conditions became more and more extreme on an intraday basis, the likelihood of a bounce grew greater. After all, sooner or later, everyone who is going to sell has sold. And when that happens all that are left are those traders who see bargains where others saw only bad stocks. We saw many of these traders begin to enter the market intraday on Monday.
Here are five stocks that have moved a lot closer to that bargain territory since Friday’s close.
Viropharma Inc.
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VPHM |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.443
Telecom SystemÂ
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TSYS |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.38
First Financial CorporationÂ
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THFF |
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PowerRating) Short Term PowerRating 9. RSI(2): 9.45
Steven Madden Ltd.Â
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SHOO |
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PowerRating) Short Term PowerRating 9. RSI(2): 1.53
Gibraltar Industries Inc.
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ROCK |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.099
Of the five stocks in today’s report, all have Short Term PowerRatings of 9. We found in our research of short term stock price behavior that stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days.
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