5 PowerRatings Stocks Under $15
After days of moving higher, stocks are starting off Thursday in selling mode, with the Dow industrials lower by more than 1% 30 minutes into trading.
If you’ve been following my commentaries in recent days, then you know that I have considered the markets to be exceptionally overbought, with the S&P 500 for example recording a 2-period RSI of more than 96 yesterday. This is a significantly overbought level for a stock, let alone a stock index of 500 different components.
In this light, the selling we are seeing early on Thursday should come as little surprise.
Gasco Energy Inc.
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PowerRating) Short Term PowerRating 10. RSI(2): 0.674
The question is what sort of pullback opportunities will present themselves in the wake of today’s selling. Does this selling represent the beginning of a move lower and potential retest of the lows of mid-July? Or is this selling just a minor, but expected bit of profit-taking en route to, for example, a test of the June highs?
Tengasco Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 6.00
In either event, the stocks in today’s report are likely to be worth watching for traders who like to buy weakness and sell into strength. All five stocks have Short Term PowerRatings of at least 8, with one stock having our top-rated Short Term PowerRating of 10. This means that all five stocks, based on our research into short term stock price behavior, are likely to outperform the average stock by significant margins after five days.
Capstone Turbine Corporation
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PowerRating) Short Term PowerRating 8. RSI(2): 1.92
Just what kind of outperformance are we talking about? We found that 8-rated stocks, from 1995 to 2007, outperformed the average stock by a margin of 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 fared even better, besting the average stock by a margin of more than 13 to 1 over the same time period.
Ivanhoe Energy Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 9.40
And as for our top-rated stocks, those few that earn Short Term PowerRatings of 10, the outperformance relative to the average stock was even more pronounced. 10-rated stocks, according to our research, have bettered the average stock by a margin of nearly 17 to 1 after five days.
Gastar Exploration Ltd.
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PowerRating) Short Term PowerRating 8. RSI(2): 2.93
Note also the 2-period RSIs accompanying each stock. In addition to edge of having a high Short Term PowerRating, stocks with particularly low 2-period RSIs also have been found to have significant edges in the short term. Those stocks with 2-period RSIs of less than 2, for example, that are also trading above their 200-day moving averages have been discovered to produced positive returns in one-day, two-day and one-week timeframes. Two stocks in today’s report, Gasco Energy Inc. and Capstone Turbine Corporation, fit into this category.
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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Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
David Penn is Senior Editor at TradingMarkets.com.