All five of our Stocks for the Next 5 Days both began and ended the Thursday session with high Short Term PowerRatings. This means that as attractive as these stocks were on Thursday, all five are likely even more attractive today.

When strong stocks make minor pullbacks, we become interested in them as potential trades to the upside. This is probably no surprise--and probably no different from the way that many short term traders trade, especially in bull markets. It's called buying the dips.

Things get a little trickier when those dips get deep. Traders who love nothing more than buying shallow pullbacks, turn up their noses when those pullbacks reach moderate size and often blanche at the idea of buying stocks that have experienced severe pullbacks. What makes a severe pullback? How about a stock that is down 10% in a short period of time? Or a stock that has sold off for four days in a row, or for six out of the past eight? How about a stock that was making new short term lows?

All of these conditions, which traders tend to think represent terrible times to buy, are actually some of the best opportunities for short term traders to make money trading stocks. Given the caveat that the stocks we are talking about are strong stocks, stocks that are trending above their 200-day moving averages, stocks that have been "hit hard" with deep pullbacks are actually better bets that stocks that experience less powerful pullbacks when trading in the short term.

When stocks begin and end the day with the same high Short Term PowerRating, what has often happened is that stock has moved lower, or become even more oversold. And because we believe that the further a strong stock falls, the more attractive it will be as a trading candidate (above caveat with regard to the 200-day moving average withstanding), we see both Short Term PowerRating upgrades and stocks that maintain their high Short Term PowerRatings over the course of the trading day as both positive signs.

All five stocks in today's "5 PowerRatings Stocks for the Next 5 Days" have Short Term PowerRatings of 8. This means that all five belong to that class of stocks that our research indicates is likely to outperform the average stock by a margin of more than 8 to 1.

I have also provided the most up-to-date 2-period Relative Strength Index values for each of the five stocks so that traders can get a sense of how oversold each stock still may be. The first number is the stock's 2-period RSI as of the close on Thursday. The number in parenthesis is the starting 2-period RSI as of the previous close.

Tredegar Corporation (TG | Quote | Chart | News | PowerRating). RSI(2): 70.29 (from 10.82)

Equity One, Inc. (EQY | Quote | Chart | News | PowerRating). RSI(2): 8.90 (from 10.45)

Equity LifeStyle Properties (ELS | Quote | Chart | News | PowerRating). RSI(2): 37.23 (from 5.87)

China Medical Technologies (CMED | Quote | Chart | News | PowerRating). RSI(2): 4.60 (from 6.29)

Valence Technology (VLNC | Quote | Chart | News | PowerRating). RSI(2): 19.58 (from 1.88)

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David Penn is Senior Editor at TradingMarkets.com