5 Stocks for the Next 5 Days: DBS, ABX, DNR, KGC, SLV
When the Dow gains nearly 400 points, as it did on Tuesday, you might think quality pullbacks would be hard to find. But here are five stocks that are likely to outperform the average stock over the next five days–and all of them just got cheaper.
What is it that makes trading stocks difficult? Is it cutting losses? Letting winners run? Or is the tricky part in trading finding the strength to think about what everybody else is not thinking about?
When a market is up 400 points, most traders are on the lookout for breakouts. Stocks that had been meandering around for days or weeks suddenly shoot higher as if launched from a cannon and traders–too many in our opinion–tend to go chasing after them.
For us, when a market advances by 400 points, the first thing we want to know is: what stocks are pulling back? What strong stocks for whatever reason are being sold so that traders can by those that have already started moving higher?
Our research into short-term stock behavior suggests that this kind of question is what leads to making the right kinds of trades in the right kinds of stocks. We were able to quantify that buying low and selling high works, and to build a rating system, our Short Term PowerRatings, based on separating the stocks that are likely to outperform in the short term from the stocks that are more likely to disappoint.
These are the kind of “buy low, sell high” stock trades that traders and speculators have used successfully for decades in order to make money when people are either too fearful or too greedy. In our Short Term PowerRatings, we have managed to both prove and quantify much of that centuries-old stock market wisdom.
For more simple and straightforward tips on short-term stock trading, by the way, consider getting a copy of our free report, written especially for those who trade stocks in the short-term “sweet spot” of five to eight days. Click here to get your copy of “5 Secrets to Short Term Stock Trading Success”–or call us at 888-484-8220–and see what the TradingMarkets approach to trading can do to make you a better trader.
All of the five stocks in today’s report started Tuesday with Short Term PowerRatings of 7, a respectable but average score. Yet, by the end of the day, all of these stocks had PowerRatings upgrades to 8. This means that according to our research, all five stocks became more likely to outperform the average stock over the next five days.
That this has happened as all five stocks actually became cheaper makes the potential opportunities all the more interesting.
Many of these five stocks are stocks that readers of our Short Term PowerRatings will remember as short term opportunities to the upside only a few days ago. As those stocks became oversold in the first half of March, these gold, mining and materials stocks and exchange-traded funds became great trades to the upside as many of them bounced significantly later in the month.
Whether or not these stocks perform as well in April for short-term traders as many of them did in late March remains to be seen. In the meanwhile, these are certainly five stocks for traders to keep an eye on in the near-term. They will certainly be among the topics I discuss with TradingMarkets CEO and founder Larry Connors in our weekly Teleconference Wednesday at noon Eastern (click here to sign up for free).
PowerShares DB Silver Fund
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DBS |
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PowerRating). RSI(2): 7.57
Barrick Gold
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ABX |
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PowerRating). RSI(2): 7.27
Denbury Resources
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DNR |
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PowerRating). RSI(2): 16.20
Kinross Gold
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KGC |
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PowerRating). RSI(2): 6.58
iShares Silver Trust
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SLV |
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PowerRating). RSI(2): 6.94
Tired of losing money trading breakouts and breakdowns? Our special, Free Report, “5 Secrets to Short Term Stock Trading” will show you some of the key strategies and attitudes that traders throughout history have used to determine the right time to buy and the right time to sell. Click here to get your free copy of “5 Secrets to Short Term Stock Trading”–or call us today at 888-484-8220.
David Penn is Senior Editor at TradingMarkets.com.