PowerRatings Review: Wading into Weakness in Top Stocks
Of the five stocks listed last week in our 5 PowerRatings Stocks for the Next 5 Days column, only one has closed above its 5-day moving average since. That was Ctrip.com International
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PowerRating), which closed above its 5-day moving average on Thursday and continued higher on Friday.
This means that the four other stocks in our list are still stocks that are under selling pressure and potentially worth watching by PowerRatings traders. These stocks are:
Visa Inc.
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PowerRating) has now closed lower for four days in a row going into Monday’s trading. The stock has earned a PowerRating of 9.
After falling for seven days in a row, OptionsXpress Holdings
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PowerRating) moved higher on Friday. However, the bounce was not enough to bring OXPS to a close above the 5-day moving average. OXPS currently as a PowerRating of 8.
Jo-Ann Stores Inc.
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PowerRating) has finally begun to move sideways after a torrent of selling pressure drove the stock down for nine out of the past 11 trading days — and those two up days were no world-beaters, either. The stock, which has been a high PowerRating stock for days, currently has a PowerRating of 9.
Last, Pyramid Oil Drilling
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PowerRating) has closed lower for four out of the past five trading days leading into Monday. Although lower in price, the stock is actually not quite as oversold as it was a few days ago, when its 2-period RSI dropped below 4. PDO has a PowerRating of 8.
To replace CTRP, which closed above its 5-day moving average late last week, PowerRatings traders may want to consider this big-name, high PowerRating technology stock: Research in Motion
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PowerRating)
RIMM has closed down for six days in a row and is reaching truly oversold extremes above the 200-day moving average. Early in trading on Friday, the stock is only becoming more oversold, gapping down at the open and down more than 2% mere minutes into the trading day.
Remember that stocks with PowerRatings of 8 have outperformed the average stock by a margin of more than 6 to 1 after five days. Stocks with PowerRating of 8 have performed even better, besting the average stock by a margin of more than 9 to 1 over the same time period.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
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David Penn is Editor in Chief at TradingMarkets.com.