PowerRatings Review and Outlook: AGN, MYL, JJSF and More

The rally in stocks picked up steam late in the Thursday session, leaving most markets overbought going into options expiration Friday.

The bullishness has helped push a number of high PowerRatings stocks above their 5-day moving averages over the past few days.  Two stocks from my last column, Allergan Inc.
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and Mylan Corporation
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, were up 4% and 3% respectively on Thursday alone. 

And although less impressively, J&J Snack Foods Corporation
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closed above its 5-day moving average on Thursday as well, gaining more than 1% on the day.

Do you know why a close above the 5-day moving average is important as an exit signal?  Click here to read Larry Connor’s How to Find the Best Stocks to Trade Every Day.

As such, traders should turn to look for new opportunities.  We should expect pullbacks and high PowerRatings stocks to become a bit fewer in number over the next few days if markets continue to ramp higher.  Because a number of short ETFs have fallen below their 200-day moving averages, we should not be surprised if the number of opportunities to take advantage of extremely overbought markets are also less numerous than they have been in months past.

That said, we will continue to be vigilant for stocks that have experienced the kind of profit-taking that helps drive PowerRatings higher into the 8, 9 or 10 level.  We will also want to see how much any sell-off in the broader market helps boost the PowerRatings of short or inverse ETFs.

Here are an additional three high PowerRatings stocks for traders to consider as potential opportunities should they show intraday weakness on Friday.

Ivanhoe Mines Ltd.
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actually earned a PowerRatings upgrade since appearing in my last column, 5 PowerRatings for the Next 5 Days.  The stock has closed lower for six consecutive sessions above the 200-day moving average.

Terra Nitrogen
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has closed lower for four out of the past five sessions above the 200-day moving average.  The stock, which has a price tag of more than $130, has a 2-period RSI of less than 5.

Hopes of a reviving economy may have sellers taking profits in discount retailers like Family Dollar
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, which remained under selling pressure on Thursday.  The stock has a Short Term PowerRating of 8.

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