High PowerRating, Low Price: 3 Stocks for Swing Traders
Stocks are higher in the first few hours after the bell on Thursday, after a wave of initial selling brought the Dow down by more than 200 points.
A watched pot never boils, goes the old saying. And I can’t help but wonder if the fact that everyone is staring at the three lows, the markets have created since October, is in an unfortunate way, keeping the markets from making the bottom so many traders believe is due.
Unifi Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 4.15.
Fortunately, for swing traders who follow a strict discipline of buying strong stocks on pullbacks and selling weak stocks on bounces, this sort of “how many angels on the head of a pin” speculation is unnecessary. All we need to do is focus on the number and quality of high Short Term PowerRatings we see every evening after the close, and act accordingly. And when we see that the number of these stocks is low – even very low, as has been the case over the past few weeks in particular – then our discipline is providing us with a very clear message: the edges are not there right now.
Hanger Orthopedic Group
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HGR |
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PowerRating) Short Term PowerRating 7. RSI(2): 8.56.
Traders should only trade with an edge. Arguably, the difference between trading and gambling is that trading involves taking on risk only when the edges are on your side. And right now, in this strong-get-stronger/weak-get-weaker market, those edges are not nearly as apparent as they have been – and will be – once the current bout of selling subsides.
Carter Holdings Inc.
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CRI |
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PowerRating) Short Term PowerRating 6*. RSI(2): 2.90.
Shown here are three of the few stocks with relatively high Short Term PowerRatings and low 2-period RSI values. Note that Carter Holdings Inc. had a Short Term PowerRating of 6 as of Wednesday’s close, but has earned a significant PowerRatings upgrade to 8 intraday on Thursday.
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David Penn is Editor in Chief at TradingMarkets.com.