5 PowerRatings Stocks Under $15
Down again after yesterday’s bump higher, stocks are nevertheless moving off their early morning lows an hour after the open.
The sell-off that ended August and began September was the most sustained market activity that we’ve seen since stocks made their July lows. When was the last time the S&P 500, for example, had four consecutive up or down days – as it did from August 29th through September 4th? You would have to go back to the middle of April, as stocks were rallying from their March lows, to find the last time the market moved with such day-in, day-out consistency.
Sapient Corporation
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PowerRating) Short Term PowerRating 9. RSI(2): 5.65
More often over the past several months, stocks have not been able to move too far in one direction without a quick and sudden reaction in the other direction. In another piece for TradingMarkets.com, “Patience, Agility and PowerRatings: 5 Stocks for Swing Traders” I remarked about this tendency, reminding swing traders of how important it has become to be able to recognize oversold (and overbought) markets as quickly and accurately as possible and then, with equal speed and accuracy, to take positions as low (or as high, in the case of selling overbought markets short) as possible.
Verifone Holdings Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 4.45
Nothing in the current market’s behavior has invalidated this requirement. Stocks were essentially in a neutral mode going into Thursday’s trading, with a slightly oversold bias. That bias, however, did not stand in the way of renewed selling, as Wednesday’s bounce provided the sort of lift that gave traders another chance to unload shares at a relatively higher price than a day before.
Palm Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 2.35
The task for swing traders right now? When markets sell-off, the job of the swing trader is to start looking at those high Short Term PowerRatings stocks, those stocks with PowerRatings of 8, 9, or 10, that have pulled back, but remained above their 200-day moving averages. These are the stocks that are most likely to respond positively and strongly when buyers – be they traders covering short positions or speculative bottom-fishers – return to the market in earnest.
Skillsoft PLC ADR
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PowerRating) Short Term PowerRating 8. RSI(2): 1.48
Of the five stocks in today’s report, three have Short Term PowerRatings of 9 and two have Short Term PowerRatings of 8. Our research into short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 have fared even better, outperforming the average stock by a more than 13 to 1 margin over the same time period.
Ultratech Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 9.79
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David Penn is Editor-in-Chief at TradingMarkets.com.