5 PowerRatings Stocks for the Next 5 Days: INSU, RMIX, YZC, TAL, SWN

Stocks avoided losing three days in a row on Thursday with modest gains across the board.

Two days of selling and a one-day bounce have likely taken some of the potential pullback opportunities off the table for many traders. Even as the markets move beyond the June lows, the fact that the selling has abated somewhat has been enough to keep many stocks from falling into the sort of exceptionally oversold conditions that our research into short term stock price behavior indicates create often excellent trading opportunities to the upside.

That said, where there’s a will there’s a way, and as long as our news is filled with soaring oil prices, falling home values, credit crunches and indicted hedge fund managers there will always be plenty of traders and investors dumping their shares of stock for cash. And some of those stocks will be the kind of strong stocks trading above their 200-day moving averages that traders who buy weakness and sell strength look for as the bread and butter of their trading every single day.

Let’s take a look at some of these strong stocks that remain in pullback mode despite the relative strength of Thursday’s market..

U.S. Concrete Inc. (RMIX | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 6.29

Insituform Technologies Inc. (INSU | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 0.552

Yanzhou Coal Mining Company Ltd. (YZC | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 5.23

TAL International Group Inc. (TAL | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 4.54

Southwestern Energy Company (SWN | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 5.50

Of the five stocks in today’s report, Insituform Technologies is perhaps the most attractive. This is not only because of the stock’s very high Short Term PowerRating of 9, but also because of the stock’s nearly subterranean 2-period RSI of less than 1. This is in many ways an ideal trading situation – what I called in an earlier column the “high low” of successful stock trading using PowerRatings: a high Short Term PowerRating of 8, 9 or 10 and a 2-period RSI of less than 5.

By these criteria, only TAL International qualifies unconditionally, with its PowerRating of 8 and its 2-period RSI of 4.54. However all the other stocks in today’s report are stocks that traders should keep an eye on over the coming days – especially if Thursday’s bullishness is met on Friday by a resumption of the selling that characterized the markets at mid-week.

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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.