High PowerRating, Low Price: 5 Stocks for Traders
Stocks were off to a very rough start on the Thursday following the FOMC decision to keep the Fed funds rate at 2%.
It is probably a little callous to start talking about buying pullbacks in a market that is down by more than 150 points within the first hour of trading. But it is during times when markets are most under pressure that sticking to a reliable trading discipline is most important. And by sticking with buying high Short Term PowerRatings stocks on pullback when those stocks are trading above the 200-day moving average, we are confident that, over time, we will continue to benefit from high percentage trades and – taken as a whole – minimal drawdowns.
Let’s take a look at some of the opportunities shaping up this morning, with a focus on those stocks with dollar values of less than $15.
Cardica Inc.
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CRDC |
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PowerRating) Short Term PowerRating 9. RSI(2): 7.57
Breaking out above its 200-day moving average on June 10, shares of Cardica Inc. have settled into a sideways consolidation range between $9 and $10. The recent pullback to the lower end of this range over the past few days has helped boost the stock’s Short Term PowerRating from a “consider avoiding” 3 on June 20th to its most recent “consider buying” level of 9.
U.S. Concrete Inc.
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RMIX |
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PowerRating) Short Term PowerRating 9. RSI(2): 9.69
Sellers have been aggressively taking profits in shares of U.S. Concrete, which has doubled in price since late April. Having broken out above its 200-day moving average in late May, RMIX has since began pulling back to within three-quarters of a point of that former resistance level. The stock has maintained its Short Term PowerRating of 9 for the past several days.
Ivanhoe Energy Inc.
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IVAN |
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PowerRating) Short Term PowerRating 9. RSI(2): 11.96
Shares of Ivanhoe Energy have also been very, very good to traders this spring, as the stock has nearly doubled since late April. However, as with U.S. Concrete, it appears that those who have gained from IVAN’s impressive rally, have begun taking some gains off the table, creating a pullback in the stock. IVAN’s Short Term PowerRating has moved dramatically as a result, climbing from a 1 to a 9 in four days.
Satcon Technology Corporation Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 8.22
The chart of Satcon Technology Corporation resembles that of Ivanhoe Energy in many respects, with shares rallying into mid-June before rolling over and moving lower in the second half of the month. Note how the stock reacted in the first half of June when its Short Term PowerRating last climbed to 9.
Beacon Power Corporation
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BCON |
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PowerRating) Short Term PowerRating 8. RSI(2): 6.28
Another example of impressive post-high PowerRating performance can be found in the PowerRatings chart of Beacon Power Corporation. BCON developed a Short Term PowerRating of 3 while making its May high, and pulled back for four days – a pullback which created a particularly oversold condition in the stock, and a Short Term PowerRating of 10. Six days later, the stock was up more than 11%.
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 at TradingMarkets.com.