TradingMarkets 5 PowerRatings Stocks Under $15
Pre-market futures indicated a weak opening for stocks on Thursday and traders have obliged by sending the Dow industrials down by more than 90 points within the first hour of trading.
Disappointing sales from Wal-Mart, more disappointment from on the jobs front, more massive mortgage-related losses from AIG… the financial media has its reasons for the bearish mood in the markets this morning and – as you might imagine – we have another.
Otter Tail Corporation
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PowerRating) Short Term PowerRating 9. RSI(2): 19.07
From our perspective, stocks simply became overbought. As I noted this morning in our TradingMarkets Battle Plan stock subscription service’s Morning Market Intelligence Report, when stocks are under pressure and trading below their 200-day moving averages, it doesn’t take a great deal of buying to move stocks from oversold to overbought.
Haverty Furniture Companies Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 1.56
Moreoever, it tends to take less and less buying to accomplish this as the downtrend in stocks intensifies. This is what often makes selling stocks short a tricky business for swing traders.
Idenix Pharmaceuticals
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PowerRating) Short Term PowerRating 9. RSI(2): 13.02
Whereas at one point stocks may have required a 2-period RSI of, for example, 90 or higher to become overbought enough to cause stocks to reverse and move lower, as the markets move lower, that overbought extreme point is likely to be lower as well. Thus traders often find themselves waiting for an overbought gauge like the RSI to reach a certain level, only to have the markets reverse before those levels are reached.
Skillsoft PLC
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PowerRating) Short Term PowerRating 8. RSI(2): 9.97
For trading to the long side, this also means that pull backs and short term buying opportunities can appear after than traders expect. This is one reason why, even when the bias in the marketplace is on the side of caution or selling short, we want to make sure that traders are aware of those stocks that, while perhaps not ideal candidates right this second, are likely to be among the top trading opportunities once the market pullback is complete.
Grupo Simec S.A.
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PowerRating) Short Term PowerRating 8. RSI(2): 10.06
In addition to having dollar prices of less than $15, the five stocks in today’s report all have Short Term PowerRatings of 8 or 9. Our research into short term stock price behavior 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.
Stocks with Short Term PowerRatings of 9, based on our analysis of millions of simulated stock trades between 1995 and 2007, have performed even better, outperforming the average stock by a margin of more than 13 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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Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
David Penn is Senior Editor at TradingMarkets.com.