PowerRatings and a Golden Education for Traders
I’ve noted over the past several days the sizable pullbacks in gold stocks. Some of these stocks, like DRDGold Ltd.
(
DROOY |
Quote |
Chart |
News |
PowerRating) have been moving lower since mid-March. Others, like Newmont Mining Corporation
(
NEM |
Quote |
Chart |
News |
PowerRating), have begun their pullbacks more recently, falling for the past week or so.
Both DROOY and NEM have Short Term PowerRatings of 8. This means they belong to that group of stocks that historically have outperformed the average stock by a margin of more than 8 to 1 after five days.
Click here to read more about the performance of our highest PowerRatings stocks!
But to these group of gold stocks on sale short term traders can add shares of companies involved in adult and continuing education. From 9-rated ITT Educational Services
(
ESI |
Quote |
Chart |
News |
PowerRating) and Career Education Corportion
(
CECO |
Quote |
Chart |
News |
PowerRating) to 8-rated Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating), traders and investors have been taking profits in these names since the beginning of April. All three stocks are pulling back toward not only their 200-day moving averages, but also to the level of their most recent pullbacks during the mid-March lows.
Even more impressively, all three of these education stocks have 2-period RSIs of less than 2. Our research into short term stock price behavior indicates that stocks that are trading above their 200-day moving averages develop 2-period RSIs of less than 2, those stocks have produced positive returns in the short term.
All three closed lower on Thursday, but managed to rally from their lows. Additional weakness in these names early in the week may represent an opportunity for traders looking for stocks that have already sold off and are increasingly attractive to a new round of buyers.
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!