TradingMarkets Tuesday Stock Movers
With stocks still catching their breath from the selling of late last week, a number of strong stocks have managed to pull back just far enough to become potentially attractive candidates for traders looking to buy weakness and sell strength.
In addition, know that all five stocks in today’s report have been down by 10% or more over the past five days. We have found in our research of short term stock price behavior that stocks that are trading above their 200-day moving averages and are down by 10% or more in five days have outperformed the average stock in one-day, two-day and one-week time frames.
Inter Parfums Inc.
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IPAR |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.178
IPAR has been a high Short Term PowerRating stock for virtually the entire month of May as the stock has retreated from highs reached in late April and early May.
We can see the warning signs that were provided traders of this stock back in April, as IPAR’s Short Term PowerRatings plunged. Not only did those low Short Term PowerRatings help anticipate minor pullbacks and profit-taking moments on the way up, these low Short Term PowerRatings helped warn traders of the impending peak in IPAR that arrived on the first of May.
TRW Automotive Holdings
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TRW |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.646
TRW followed a path in recent days and weeks that we will see in some of the other stocks in today’s report. The stock rallied up and over its 200-day moving average at the end of April as its Short Term PowerRatings plunged lower. Unlike some of the other stocks with similar patterns, TRW pulled back briefly before making another high in mid-May.
This second high anticipated the greater pull back, which followed almost immediately. Four trading days after the stock earned a rock-bottom PowerRating of 1, TRW was sporting a superlative PowerRating of 9, which the stock has maintained for the past three trading days.
TBS International Ltd.
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TBSI |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.99
As I mentioned with TRW, TBSI also rallied into mid-May, with its Short Term PowerRatings falling lower every step of the way.
Topping out May 19th, the stock has pulled back aggressively, moving from a Short Term PowerRating of 2 to a Short Term PowerRating of 8 in a matter of three days. By the fourth day, TBSI’s Short Term PowerRating had increased to a 9.
Navios Maritime Holdings
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NM |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.44
Traders watching the PowerRatings chart of Navios Maritime Holdings might have wondered about the stock’s plunging Short Term PowerRating as the stock was rising in the first half of May. Those questions, however, were answered in the second half of the month as the stock’s advance proved unsustainable and NM reversed and began moving lower.
NM currently as a Short Term PowerRating of 9, which it has maintained for the past three days as the stock has continued to pull back toward its 200-day moving average.
Diana Shipping Inc.
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DSX |
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PowerRating) Short Term PowerRating 9. RSI(2): 5.40
The PowerRatings chart of DSX is an excellent example not only of the opportunities in high Short Term PowerRatings stocks, but also of the potential hazards when a stock develops a low Short Term PowerRating. Notice how DSX behaved on those occasions when the stock’s PowerRating dropped below 3 in the first half of May.
Diana Shipping Inc. has had its Short Term PowerRating increase from 8 to 9 in recent days, just as sharply as the stock has corrected, pulling back toward its 200-day moving average in the final week of May.
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David Penn is Senior Editor for TradingMarkets.com.