PowerRatings Roundup: Selling into Spring Strength
Of the five stocks noted in my last column, “5 PowerRatings Stocks for the Next 5 Days,” four of them have rallied to close above their 5-day moving averages as of Monday’s close.
Both of the restaurants on our list advanced on Monday, with The Steak and Shake Company [SNS| closing up nearly 10% and Ruby Tuesday
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PowerRating) gaining more than 14%. Silicon Laboratories [SLAB] closed higher for a third consecutive session, with the third time being the charm that brought shares above their 5-day moving average.
Last but not least of the advancing four is Marvel Entertainment [MVL] which only edged higher on Monday but was still sufficiently boosted to end the day above its 5-day MA.
The only stock not to rally significantly on Friday was retailer Hot Topic [HOTT], which has continued to trade in a four-day, 50 cent range just above its 200-day moving average. However, Hot Topic remains oversold and has earned a PowerRating of 9 has of the Monday close, which means the stock remains on our “next 5 days” list for now.
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Monday’s rally has reduced the number of top PowerRating stocks, as is to be expected. However, the number of 9 and 10-rated stocks has been so great over the past few days that there remain more than a few opportunities for short term traders looking for high probability pullbacks among the market’s renewed bullish mood. Some of the more oversold of those opportunities are listed below.
The Pantry [PTRY] PowerRating of 9. Down four days in a row, The Pantry came within cents of its 200-day moving average intraday on Monday before buyers arrived to bid the stock off its lows. PTRY has an extremely low 2-period RSI of 0.20.
Anglogold Ashanti [AU] PowerRating of 8. Breaking down by more than 5% on Monday, AU now has a 2-period RSI of just barely above 5.
Family Dollar Stores [FDO] PowerRating of 8. Closing lower for a second day in a row, FDO managed to find buyers just as the stock was moving to the lower end of its daily range on Monday. The stock’s 2-period RSI is below 10.
Recall that stocks with PowerRatings of 9 have outperformed the average stock by a margin of more than 9 to 1 after five days since 1995 and including 2008. 8-rated stocks, according to our research, have outperformed the average stock by a more than 6 to 1 margin after five days.
Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!