Wednesday’s sell-off helped drive higher the Stock PowerRatings of a sizable number of stocks in both the S&P 500 and the Nasdaq 100.
With a growing number of stocks earning Stock PowerRatings
upgrades from 7 to 8 and from 8 to 9, PowerRatings traders have a new set of oversold stocks to consider over the next few days.
Before looking at five of the stocks that traders should be keeping an eye on over the next 5 days, let’s take a quick look at the recent performance of a few stocks that earned significant Stock PowerRatings upgrades (or downgrades, for that matter) heading into Wednesday.
Consider for example the recent oversold bounce in ^IGTE^. IGTE earned a Stock PowerRating of 9 on August 5. Traders using an intraday weakness entry of 3%, for example, would have been able to pick up shares of IGTE on the following day at about 16.09, and could have sold those shares into strength just one day later for a gain of more than 5%.
Take a look at another oversold bounce, this time in ^BJGP^. Like IGTE, BJGP earned a Stock PowerRatings upgrade to 9 on the fifth of August. Traders who bought shares on intraday weakness the following day were able to lock in gains of well over 3% one day later as the stock rallied into strength.
This is how stock trading with Ultimate PowerRatings works.
Identify your 9- or 10-rated stock. Look to buy on intraday weakness the following day at a level below the previous close. Exit the position as the stock rallies back.
(For more information on how to trade stocks using intraday weakness, click
here to read: “Intraday Weakness and Scaling-In: Two Greatest Secrets of High Probability Trading.”)
Now let’s look forward to potential opportunities in top-rated stocks over the next few days.
^BC^
Shares of Brunswick Corporation earned a Stock PowerRatings upgrade from 8 to 9 on August 11 as the stock continued to pullback from short term highs near the beginning of the month. The stock’s PowerRatings of 9 is the highest rating the stock has earned in months. BC is also at its most oversold levels since it slipped below the 200-day moving average briefly in early July.
^GENZ^
Alternating between Stock PowerRatings of 8 and Stock PowerRatings of 9 over the past four days, GENZ has become one of the highest rated stocks in the S&P 500 as of Thursday’s open.
Like Brunswick Corporation above, GENZ has not had a Stock PowerRating of 8 or more in several months. The stock has been moving lower ever since reaching a new intermediate high early in the
month near $70.
^CTXS^
Shares of CTXS shot higher in late July, and the pullback from that rally is what has led to the stock’s current Stock PowerRating of 8.
In many ways, CTXS is an excellent example of how
exceptionally low Stock PowerRatings of 1 and 2 can often help traders anticipate potential pullbacks and, often, significant Stock PowerRatings upgrades.
^ADSK^
ADSK has earned Stock PowerRatings of 8 for the past two days leading into trading on Thursday.
Closing lower for four out of the past five days, ADSK has slipped particularly close to its 200-day moving average. This may make it more difficult for traders looking to pick up shares of ADSK on intraday weakness (ADSK closed approximately 40 cents above its 200-day on Wednesday).
^EXPD^
The last stock in today’s report is EXPD, which earned a Stock PowerRating of 8 on Wednesday. Like many of the stocks in today’s report, EXPD has not had a top, “consider buying” Stock PowerRating of
8 or more all summer.
EXPD has closed lower for three out of the past four days above its 200-day moving average. The stock is also at its lowest closing level in nearly two weeks.
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David Penn is Editor in Chief at TradingMarkets.com.