5 PowerRatings Stocks Under $15
Stocks are off to a strong start on Thursday, with the Dow industrials up more than 80 points after the first hour of trading.
Although it is early, the markets are on track for a third consecutive day of gains – at least among the blue chip S&P 500 and Dow industrials. A third day of gains would mean that we would likely wind up with a market that is clearly and demonstrably overbought. After an hour of trading, both the Dow industrials and S&P 500 have 2-period RSIs of more than 82.
Overhill Farms Inc.
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PowerRating) Short Term PowerRating 10. RSI(2): 5.70
And because both the Dow industrials and S&P 500 are trading below their 200-day moving averages, we know to be especially attentive to these “high and rising” 2-period RSIs. Why? Because they tell us a few things about how stocks are likely to behave in the near-term.
Triquint Semiconductor
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PowerRating) Short Term PowerRating 9. RSI(2): 15.47
For one, the bias to the upside means that we have fewer high quality pullbacks from which to choose. Relative to a week ago, we are seeing fewer 10-rated stocks, fewer 9-rated stocks, and many of the 8-rated stocks are not as oversold as we would prefer. This means that the markets may or may not be overbought. But they are clearly not yet oversold enough to create the sort of “bargains” that we like to target for long trades.
Lydall Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 1.49
Because of this, we are likely in a position in which we will have to wait for stocks to become even more overbought, and then pullback, before we can confidently begin taking long positions in strong stocks.
Micromet Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 17.58
Of course, stocks have their own lives, their own personalities that can run counter to the larger influence of the broader market. Aggressive traders who want to pursue some of these opportunities should look for stocks like the five in this report – stocks with high Short Term PowerRatings and low, 2-period RSIs – when choosing trading candidates to the upside. Even in an overbought stock market, there will be strong stocks experiencing profit-taking. And when this profit-taking inevitably runs its course, opportunities for swing traders will abound.
Seattle Genetics
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PowerRating) Short Term PowerRating 8. RSI(2): 25.53
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David Penn is Editor-in-Chief at TradingMarkets.com.