PowerRatings Review & Outlook: EAT, DRI, CPKI
For many traders, Tuesday was a fairly lackluster trading day. But for PowerRatings traders, it might as well have been the Fourth of July.
Of the 5 stocks mentioned in my last, 5 PowerRatings Stocks for the Next 5 Days column, all have shown recent strength. Three of those stocks, in fact, have actually closed above their 5-day moving averages. Remember, we see closes above the 5-day moving averages as opportunities to take profits on stocks bought during short term oversold extremes — which aptly describes the high PowerRatings stocks we discuss regularly.
Those three stocks are Netflix
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The other two stocks — ACI Worldwide
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As such, I’ll provide three new stocks to take the place of those that have already rallied impressively over the past few days. All three of these stocks have PowerRatings of 9, making them part of that cohort of stocks — as was the case with Netflix, Myriad Genetics and Coinstar — that have historically shown short term outperformance relative to the average stock.
Brinker International
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PowerRating) PowerRating 9. RSI(2): 9.64
Down four days in a row above the 200-day moving average. Lowest close since April 7th on Tuesday.
Darden Restaurants
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PowerRating) PowerRating 9. RSI(2): 7.37
Also down four days in a row above the 200-day moving average. 2-period RSI below 8.
California Pizza Kitchen
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CPKI |
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PowerRating) PowerRating 9. RSI(2): 15.83
Making its lowest closing low in five days. Down three days in a row above 200-day moving average.
9-rated stocks have outperformed the average stock by a margin of more than 13 to 1 after five days. Note that all three of the stocks in today’s report come from the same restaurant industry and appear to be undergoing some short term profit-taking in the sector. Should traders consider trading any of these stocks on intraday weakness, be mindful of having too much exposure, even in the short term, to a single sector.
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!