Patience, Agility and PowerRatings: 5 Stocks for Swing Traders
Stocks retreated from intraday highs and bounced from intraday lows to finish higher in the Dow and S&P 500, mildly lower in the Nasdaq Composite. On balance, stocks remain more oversold than overbought, though only marginally so.
Patience and agility are two of the paramount virtues for the short term trader. Patience is what is required in order for the trader — or the fighter — to wait for the right moment to strike. Agility is the skill or capacity to do what needs to be done exactly when it needs to be done — no sooner, no later.
Both skills have been tested in recent days, as markets have swung from oversold to overbought and back again within a matter of days. Swing traders have had to stick with their discipline in order to take advantage of these moves, one way our Short Term PowerRatings can be especially helpful.
By waiting for markets to become oversold and then selecting only high Short Term PowerRatings stocks — especially those with Short term PowerRatings of 9 or 10 — swing traders can gain a significant edge over traders buying the average stock. We found that stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days. This was based on millions of simulated short term trades between 1995 and 2007, including delisted shares.
Stocks with Short Term PowerRatings of 10 fared even better, while stocks with Short Term PowerRatings of 8, fared a little worse with an edge of more than 8 to 1 over the average stock after five days, but still represent potentially rewarding opportunities for swing traders — particularly when positions are taken during market pullbacks.
RPC Inc. [RES|RES} Short Term PowerRating 9. RSI(2): 9.03
MBIA Inc.
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MBI |
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PowerRating) Short Term PowerRating 9. RSI(2): 15.79
Taleo Corporation
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TLEO |
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PowerRating) Short Term PowerRating 8. RSI(2):6.83
Sequenom Inc.
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SQNM |
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PowerRating) Short Term PowerRating 8. RSI(2): 4.99
Skillsoft PLC ADR
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SKIL |
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PowerRating) Short Term PowerRating 8. RSI(2): 1.48
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