High PowerRating, Low Price: 3 Stocks for Swing Traders
Stocks are higher in the first hour of trading on Thursday, recovering from significantly lower levels in futures trading before the market opened.
The sideways movement in stocks continues, yesterday’s sell-off notwithstanding. On balance, the markets are oversold, with the Dow industrials, S&P 500 and Nasdaq Composite all having 2-period RSIs in the teens.
Of course, all three of these markets are also trading below their 200-day moving averages. This means that while their oversold status creates opportunities in those few stocks that remain above their 200-day moving averages, the Dow, S&P 500 and Nasdaq themselves present only opportunities for swing traders looking to sell them as they rally and become overbought.
Wilshire Bancorp
(
WIBC |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2):
7.26
The task for swing traders right now is to search out those few stocks I just mentioned: stocks that have managed to withstand the intense selling pressure of this bear market and continue to trade above their 200-day
moving averages. While this number seems like it is decreasing every
month, there are a few stocks that have remained strong and, but for some profit-taking, are likely to be the sort of trade opportunities to the long side that swing traders can take advantage of.
Transmeta Corporation
(
TMTA |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8.
RSI(2): 5.52
Of our Top 25 PowerRatings stocks, only four are trading above their 200-day moving averages. And of that four, three have dollar prices of approximately $15 or less – making them eligible for High PowerRating, Low Price consideration. As I write, all three stocks continue to pullback, making them stocks that swing traders looking to buy weakness may want to consider in light of their potential for outperformance relative to the average stock.
Texas Capital Bancshares Inc.
(
TCBI |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 15.29
Recall that our research into short term stock price behavior 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.
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.