Late to the Party

• By David Goodboy
• On 7:45 pm EDT, Thursday October 8, 2009

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.

After a lackluster day yesterday, optimism over earnings spurred by an enthusiastic Alcoa have sent world markets and US stock futures sharply higher before the bell. Moves like this force many bullish stock traders, who have waited to buy, to believe they are late to the party. The overall run up has moved too far, too fast thus it's likely time for a pullback.

While today may certainly prove this is the case for the overall market, as a blow-off type top may likely be in the works for the indexes, there are ALWAYS pockets of individual stocks that still present a significant edge for short term gains, regardless of the underlying market conditions. The question is how does one locate these stocks that have not already burned out on the upside?

Short term traders need proven tools to accomplish this task. Our Stock PowerRatings are one such tried and true tool. Developed over the last 14 years of extensive research and proven in actual practice, they place the odds of short term success in your favor. Stocks earning an 8 rating have shown to outperform the average stock at a 5.8 to 1 margin. Those with a 9 rank outperform at a 10.1 to 1 margin and the highest ranked stocks with a 10 Short Term Power Rating outperform at 14.7 to 1 margin.

There are multiple ways to use the PowerRatings as a stock trading tool. One time-tested method is to look for stocks that have had high rankings over the last 2 days. The longer a stock maintains a top PowerRating the more likely it is to advance over the next 5 days.

Here are 5 stocks that have maintained a 9 or 10 Stock PowerRating over the last 2 days.

PHH Corp (NYSE:PHH - News): Stock PowerRating 10

MBI (NYSE:MBIA - News): Stock PowerRating 10

Speedus Corp (NasdaqCM:SPDE - News): Stock PowerRatings 10

Seattle Genetics (NasdaqGM:SGEN - News): Stock PowerRating 10

UAL Corp (NasdaqGS:UAUA - News): Stock PowerRating 10

Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14 to 1 after five days! Click here to launch your free PowerRatings trial today!

Buzz up!