5 Top Nasdaq Pullbacks for Traders
With the Dow down some 200 points an hour after the market opened and the Nasdaq losing more than 1.5%, we continue to look for those stocks that have just begun to experience the sort of profit-taking pullbacks that our research indicates tend to lead to quality trading opportunities to the upside.
Over the past few days, we have seen fewer and fewer high quality, high Short Term PowerRatings stocks in our screens and lists of top PowerRatings stocks. When this happens, we often find ourselves turning to the workhorses of our Short Term PowerRatings – the 8-rated stocks.
Our research into short term stock price behavior, research that involved millions of simulated short term stock trades between 1995 and 2007, 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.
This provides short term traders with a powerful edge when looking for stocks that are likely to move higher in the near term. And when combined with other factors, such as low 2-period RSI values, multiple consecutive down days or lower lows, or sizable gap downs, these 8-rated stocks can be every bit as effective as potential trades as their higher rated, 9- and 10-rated peers.
Here are five stocks, all from the Nasdaq, that have Short Term PowerRatings of 8 and should be among those stocks that short term stock traders keep an eye on over the next few days.
Stec Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 6.68
Netlogic Microsystems Inc.
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NETL |
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PowerRating) Short Term PowerRating 8. RSI(2): 9.74
Marvell Technology Group Ltd.
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PowerRating) Short Term PowerRating 8. RSI(2): 6.84
Himax Technologies Inc.
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HIMX |
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PowerRating) Short Term PowerRating 8. RSI(2): 7.58
Flir Systems Inc.
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FLIR |
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PowerRating) Short Term PowerRating 8. RSI(2): 9.16
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.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
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.