5 Top PowerRatings Stocks Under $15
As crude oil flattens out and energy stocks – as measured by major ETFs like the XLE
(
XLE |
Quote |
Chart |
News |
PowerRating) – continue to pullback, traders are finding more and more opportunities among stocks that were high-flyers only a few short weeks ago.
Is there an ideal high PowerRatings stock? Those who have spent any time at all with our Short Term PowerRatings know that quality trading opportunities come in many shapes and sizes. But for those who are still new to the concept of buying on pullback, understanding just what sort of stocks we are talking about and how they come to be the sort of high quality trades we like to encourage traders to look for is key.
Many of the stocks we talk about in our Short Term PowerRatings are stocks that have been in powerful bull markets. Fieldpoint Petroleum Corporation
(
FPP |
Quote |
Chart |
News |
PowerRating), which has a Short Term PowerRating of 9 and a 2-period RSI of 5.29, has been in a powerful advance since rallying from less than $1 in mid-February to more than $7 on a closing basis in the second half of June.
alt=”FPP PowerRatings Chart”>
With a rally like this, there are plenty of traders who have profits as June came to an end. And it was this profit-taking that led the stock to level off and begin rolling over and moving lower. Selling – particularly profit-taking – often leads to more selling as traders begin to fear that if they don’t take profits now, there may be far fewer profits to take later. This is what causes selling furies such as we saw in Fieldpoint Petroleum from late June to early July, as the stock experienced nine consecutive selling days.
It is this type of distressed selling that attracts us to a stock and alerts us to potential opportunities. Eventually, the last of the sellers takes whatever gains he or she has off the table, and traders who had been trading against the stock (and against the trend) begin to cover their short positions. This is what leads to a bottom in the stock and an opportunity for traders who look for stocks that have been put “on sale” by the aggressive – often overly-aggressive selling frenzy.
In today’s report we are focusing on low-price stocks, stocks with dollar values of less than $15. All of these stocks have Short Term PowerRatings of 8 or 9, putting them in that category of stocks which, according to our research have outperformed the average stock by a margin of more than 8 to 1 after five days (more than 13 to 1 in the case of 9-rated stocks.
Bruker Corporation
(
BRKR |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 3.96
alt=”BRKR PowerRatings Chart”>
Ivanhoe Energy Inc.
(
IVAN |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 0.271
alt=”IVAN PowerRatings Chart”>
Stec Inc.
(
STEC |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 47.04
alt=”STEC PowerRatings Chart”>
Pyramid Oil Company
(
PDO |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 11.40
alt=”PDO PowerRatings Chart”>
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.