A surprising rally on Monday leads to selling on "Turnaround Tuesday" - and potential opportunity in these Nasdaq stocks that are continuing to pull back.

I suspect there are more than a few traders who were grumbling this morning as the futures indicated a softer open. I say this because yesterday's rally - with the Nasdaq actually leading the way - likely encouraged traders to climb on board for fear of being left behind. The question now for some of these traders is whether or not the softness in the first few hours of trading day is a hint of further weakness to come.

Fortunately, we are not in that category of traders who fear market weakness. Instead, we see pullbacks and corrections as opportunities to buy good stocks at lower levels for short term trades.

We think of strong stocks like healthy people who occasionally catch a cold or twist an ankle. We know that people who are generally healthy tend to recover fully from illness and minor injury, and that it is a mistake to count them out. Similarly, strong stocks occasionally come under selling pressure. But those who count out strong stocks just because they experience corrections do not just portray a lack of knowledge about how markets really work. They also limit their ability to be successful when it comes to trading the market.

After all, if you owned a stock that had been rallying day after day, sooner or later you would want to take at least some partial profits. You are not alone, so as you do a little selling, there are usually plenty of other active investors and traders also thinking that it is time to "take a little off the table" as the saying goes.

Sometimes, of course, people mistake this profit-taking for something truly negative about the stock in question and either sell shares they only recently bought (often selling them for a loss) or even try to sell short stocks that may have been making all time highs only a few days or weeks ago.

We won't deny that money can be made this way. But our historical testing of millions of short term stock trades since 1995 suggests an alternative that has led, in our experience, to high win rate trades with minimal drawdowns.

This alternative involves buying strong stocks, stocks with high Short Term PowerRatings, as they pull back, and selling them as they recover - either by closing above their 5-day moving averages or by becoming overbought based on the 2-period RSI. The specific metric can vary. What is important is that the stocks we think short term traders should focus on are those high probability, high Short Term PowerRating stocks as they move lower and become deeply oversold. This is buying weakness or, "buying low." And when the time comes to exit the position, we may vary our methods but the approach remains the same: we are always looking to sell into strength.

All five stocks in today's report come from the Nasdaq and have earned Short Term PowerRatings of 8. Our research into short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1.

Note also the 2-period Relative Strength Index (RSI) values accompanying each stock. We use the 2-period RSI to determine whether or not a stock is overbought or oversold. Stocks with 2-period RSIs of less than 10 are considered oversold, with stocks that have 2-period RSIs of less than 2 being extremely oversold and often warranting immediate attention from traders looking to buy strong stocks on weakness.

UTI Worldwide Inc. (UTIW | Quote | Chart | News | PowerRating). Short Term PowerRating 8. RSI(2): 26.13

Triquint Semiconductor (TQNT | Quote | Chart | News | PowerRating). Short Term PowerRating 8. RSI(2): 16.49

Skillsoft PLC ADS (SKIL | Quote | Chart | News | PowerRating). Short Term PowerRating 8. RSI(2): 3.02

Parexel International Inc. (PRXL | Quote | Chart | News | PowerRating). Short Term PowerRating 8. RSI(2): 1.59

Momenta Pharmaceuticals (MNTA | Quote | Chart | News | PowerRating). Short Term PowerRating 8. RSI(2): 10.89

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.

David Penn is Senior Editor of TradingMarkets.com.