Pullbacks and PowerRatings: 3 Stocks for Short Term Traders
With the markets soaring higher right from the opening bell – the S&P 500 is up more than 3% about 30 minutes into trading on Monday, our primary strategy as short term traders is to wait and see if our Top 25 PowerRatings roster is again filled with high Short Term PowerRating short ETFs.
Trading short ETFs – ETFs that track the inverse of their underlying benchmarks – have been our most productive trading opportunities over the past several months as bear market psychology has taken hold. This strategy has allowed us to buy ETFs that represent a bet against overbought markets, and to take gains when those overbought markets sell-off and our short ETFs rally.
Papa John International Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 16.81
Those opportunities may be only a day or two away. For short term traders who are looking for more immediate potential in the market, there are a very, very small number of stocks trading above their 200-day moving averages that have earned the sort of Short Term PowerRatings that mark them stocks to keep an eye on over the next few days. This is especially so should the markets sell-off, bringing these stocks lower and their Short Term PowerRatings higher.
HMS Holding Company
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HMSY |
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PowerRating) Short Term PowerRating 8. RSI(2): 4.51
Paying attention to opportunities in both high Short Term PowerRating stocks and high Short Term PowerRatings ETFs can help us maximize opportunities in the current market environment. When the market is strong and rising below the 200-day moving average, we focus on short ETFs with high Short Term PowerRatings, looking to bet that overbought markets will reverse. When the market is weak and falling below the 200-day moving average, we look to those stocks that are still above the 200-day moving average and look to buy them after they reach oversold extremes.
Granite Construction
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PowerRating) Short Term PowerRating 8. RSI(2): 7.70
Recall that our research indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days.
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!