5 Top PowerRating Technology Stocks for Traders
With stocks off to a strong start on Friday the 13th, some of the more oversold stocks from yesterday have already begun to move higher. Here are a few of the horses that have not quite left the barn and may represent opportunity for short term traders in the days to come.
Western Digital Corporation
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PowerRating) Short Term PowerRating 9. RSI(2): 13.62
Shares of Western Digital Corp frequently developed low Short Term PowerRatings as the stock advanced over the second half of May and into June. But it wasn’t until WDC hit a Short Term PowerRating of 1 that the stock finally began to pull back in earnest.
Since earning that PowerRating of 1 on June 5, WDC has slid 3-4 points to its current level just north of $37. It took about five days for WDC’s Short Term PowerRating to rally from a 1 to a 9 – the rating the stock had as of the Thursday close.
Silicon Motion Technology
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PowerRating) Short Term PowerRating 9. RSI(2): 12.87
Silicon Motion Technology broke out above its 200-day moving average in mid-May, pulled back to test that level shortly thereafter, and then went on to make new highs in early June.
Typically, those new highs were accompanied by plunging Short Term PowerRatings, helping alert traders to the potential for another pullback. That pullback did arrive after the stock topped the $20.50 level on June 5th, sending the stock’s PowerRating from a 2 to a 9 in five days.
Netlogic Microsystems Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 8.32
Rallying above its 200-day moving average in late April, shares of Netlogic Microsystems have spent most of the past several weeks moving higher – with ever decreasing Short Term PowerRatings.
The last healthy pullback in NETL was in the second half of May, when the stock ran the range from a Short Term PowerRating of 1 to Short Term PowerRating of 10 in six days. The move higher that followed the stocks’ PowerRating upgrade to 10 saw NETL rally from the low 30s to more than 40 within nine days.
TTM Technologies
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PowerRating) Short Term PowerRating 8. RSI(2): 3.46
I’ve said it before and I’ll say it again: we love big pullbacks and we cannot lie. The pullback that TTMI produced in the first half of May was a classic as far as we are concerned. TTMI gapped down big on May 8th, doubling the stock’s Short Term PowerRating from 4 to 8 in a day.
The current pullback is not likely to be as potent as the one in May, but the move down from the $15.50 level has precipitated a rally in the stock’s Short Term PowerRating from 3 to 8 over the past six days.
Pericom Semiconductor Corp
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PowerRating) Short Term PowerRating 8. RSI(2): 2.69
Like TTMI, Pericom Semiconductor’s most impressive recent pullback occurred in early May, as the stock moved from a Short Term PowerRating of 2 to a Short Term PowerRating of 9 in seven days.
The current pullback in PSEM has seen the stock’s Short Term PowerRating double from 4 to 8 in three days. PSEM has maintained its 8-rating for the past three days as the stock churns between $18 and $17.
Recall that our research into short term stock price behavior, research that involved millions of simulated short term stock trades between 1995 and 2007, indicated 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 fared even better, besting the average stock by more than 13 to 1 over the same time period.
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 of TradingMarkets.com.