5 PowerRatings Stocks for the Next 5 Days: SATC, NFS, LNN, MON, XIDE

Today during a free conference call with traders and subscribers to our stock trading service, I made the point that when markets are selling off aggressively, traders who look to buy on weakness can afford to be discriminating when choosing stocks.

At the time, the market was "only" down 150 points or so – less than half of the selling that would occur before the market finally closed on Thursday. But as the trading day unfolded, I could only hope that those who were on the call were heeding that suggestion.

As markets move lower, those using Short Term PowerRatings will begin to notice an increase in the number of high Short Term PowerRatings stocks – particularly in the number of top 10 stocks. After Thursday’s dramatic 350+ point sell off in the Dow industrials, for example, I noted a total of 8 10-rated stocks – a relatively uncommon event. Recall that 10-rated stocks, according to our research, have outperformed the average stock by nearly 17 to 1 after five days; truly these are the cream of the short term trading crop.

You’ll have to take out a subscription to our Short Term PowerRatings (or a free trial!) in order to find out just what those 8 top-10 stocks are. For now, though, let’s take a close look at a set of five stocks with Short Term PowerRatings only slightly less impressive than those with PowerRatings of 10.

All of these stocks not only have high Short Term PowerRatings. All five of these stocks also have the sort of low, 2-period Relative Strength Index values that our research indicates are synonymous with exceptionally oversold conditions. These oversold conditions in particular are what lead to often swift and powerful reversals back to the upside at the slightest hint of genuine buying interest.

Satcon Technology Corporation (SATC | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 2.39

Nationwide Financial Services Inc. (NFS | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 0.689

Lindsay Corporation (LNN | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 4.77

Monsanto Company (MON | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 4.26

Exide Technologies (XIDE | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 5.10

Of the five stocks in today’s report, the stand out is perhaps Nationwide Financial Services. I say this because while all five stocks have Short Term PowerRatings of 9, Nationwide Financial Services Inc. has one of the lowest 2-period RSIs that I have seen in a stock at less than one. This is a measure of extreme selling – the kind of selling that can often make a stock hypersensitive to any buying pressure whatsoever. NFS has also fallen for four days in a row – another measure of how oversold this stock is.

A very worthy honorable mention should go then to Satcon Technology Corporation, with its 2-period RSI of less than 3.

Recall that stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days. This is based on our historical analysis of millions of simulated stock trades between 1995 and 2007 – including many delisted stocks. We consider stocks with Short Term PowerRatings of 9 or 10 to be among the best stocks for traders working in the 5 to 8 day time frame, a time frame our research further indicates represents a "sweet spot" for short term trading.

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.

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.