With the modest bounce on Tuesday and the even more modest bounce so far intraday on Wednesday, many high probability traders have begun to turn their attentions toward the short side of the
market.
That said, there are still a sizable number of stocks that have not only remained oversold during the most recent mini-bounce, but have even been upgraded in the process. Here are five such stocks that traders may want to keep on their watchlists over the next few days.
^LVS^
With a Stock PowerRating of 9, shares of Las Vegas Sands has been trending downward since early in the second half of June.
LVS earned a Stock PowerRatings upgrade to 8 on June 30th, and was further upgraded to a 9 on July 2nd. The last time LVS earned an upgrade to 9 was back on May 20th. Less than 5 trading days
later, LVS had gained more than 15%.
^WFMI^
In many ways, the PowerRatings chart of Whole Foods Market Inc. resembles the PowerRatings chart of Las Vegas Sands. Like LVS, Whole Foods Market earned an upgrade to 8 in late June, and was
further upgraded to 9 at the beginning of July.
Whole Foods Market is up more than 2% in the first hour of trading on Wednesday. But should the stock continue to have a Stock PowerRatings of at least 8, there may still be opportunities for
short term traders to pick up shares of the stock while it remains relatively oversold.
^UHS^
Another widely-traded stock that has earned a significant Stock PowerRatings upgrade is Universal Health Services.
UHS earned a Stock PowerRatings upgrade from 8 to 9 on July 6th. Compared to stocks like LVS and WFMI, Universal Health Services has not been often on the radar for PowerRatings traders insofar as the stock has not had a Stock PowerRating of more than 8 in several weeks.
^OC^
Trending downward since the first half of May, shares of Owens Corning earned a Stock PowerRatings upgrade to 9 as of the close on Tuesday.
Tuesday’s close marks the first time Owens Corning has earned a Stock PowerRating of 9 or higher. Shares of OC have closed lower for six consecutive trading days leading into Wednesday’s trading.
^SBUX^
Another stocks that has been tap-dancing on its 200-day moving average over the past few days is Starbucks.
Unlike the 9-rated stocks in today’s report, shares of Starbucks have earned a Stock PowerRatings upgrade to 8. What is interesting about this 8-rating for Starbucks is that the stock has not
earned an upgrade to more than 7 in several weeks. This is despite significant sell-offs in early and late May.
Additional weakness above the 200-day moving average in this stock could result in a further Stock PowerRatings upgrade and a potential opportunity for traders looking for buy-side opportunities
after several days of aggressive selling in the broader market.
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David Penn is Editor in Chief at TradingMarkets.com.