Swing Trading Momentum Markets: 3 Stocks for Traders
You don’t unwind a market that was as overbought as the one that developed in the final days of October with just a one-day sell-off.
At least that seems to be the message as of the Thursday close, with stocks down across the board for a second consecutive trading session. On Thursday, the narrative was all about disappointing retail sales and fears of the jobs report due out Friday morning.
From all accounts, the disappointment is well-deserved. Retailers are already bracing for what could one of the weakest holiday seasons — from a consumer spending perspective — in years. And as one of my favorite Forex analysts pointed out earlier today, just about every recession has a 300,000 job loss moment sooner or later. So why not now?
As swing traders, we are in reset mode for the most part. Aggressive swing traders that took advantage of the numerous inverse/short exchange-traded funds I’ve suggested as potential opportunities should be taking profits in those trades. More conservative swing traders should take this time to look at those stocks that are still trading above the 200-day moving averages. Although there are still relatively few of these stocks to choose from — as the offerings below attest — these are the high Short Term PowerRatings stocks that are most likely to provide the winning opportunities for tomorrow.
Ultratech Inc.
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UTEK |
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PowerRating) Short Term PowerRating 8. RSI(2): 7.02
Usana Health Services Inc.
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USNA |
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PowerRating) Short Term PowerRating 8. RSI(2): 36.08
Northwest Natural Gas Company
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NWN |
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PowerRating) Short Term PowerRating 8. RSI(2): 10.74
All three stocks in today’s report have Short Term PowerRatings of 8. Our research into short term stock price behavior since 1995 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.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
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