Looking for low-priced stocks with high PowerRatings? Take a look at these five top PowerRatings stocks--all priced under $10 a share and all having the potential to outperform the average stock over the next five days.

After pulling back for three days, are stocks ready to move higher? We have made no secret whatsoever of our love for strong stocks that are pulling back. And with the recent spate of weakness in the broader market, we know that there is a good chance that this weakness in the Dow, Nasdaq and S&P 500 likely spells opportunity for the strong stock in those indexes and averages.

This is how we encourage traders to look at the market. When you see the broader market selling off, look to see which strong stocks are experiencing some profit-taking. These are the strong stocks that will be bought back again after those interested in taking some money "off the table" have finished doing so. They are also the stocks that we are most interested in on the long side.

Failing to see stocks this way can lead traders to feel as if they are constantly chasing stocks. A stock will move higher and higher and higher, tempting the average short term stock trader to chase it higher. Then, just as the average trader screws up the courage to buy in, the stock reverses and begins to pullback. "A-ha!" goes the trader. "I knew I should have faded this rally!"

So the average trader decides that rather than buying the rising stock, he should be selling the pullback.

Unfortunately, because the stock is a strong stock, trading above its 200-day moving average, for example, the pullback is a good one, but hardly the kind of opportunity for a truly profitable short. So the same trader who chased the stock up, ends up chasing the stock back down. Who knows what this trader will do when the pullback ends and the stock resumes its upward trajectory.

Our approach to short term stock trading, an approach we believe represents a true swing trading method, keeps stock traders away from this sort of schizophrenic back and forth. When strong stocks, stocks trading above their 200-day moving averages, pull back, we look to buy. When weak stocks, stocks trading below their 200-day moving averages, bounce, we look to sell. Simple as it sounds, this is the method backed up by our model-driven historical testing, which examined millions of short term stock trades between 1995 and 2007.

The list of five stocks today represent some of the best opportunities in the market right now for buyers of pullbacks who like to trade stocks with low dollar values. All of the stocks noted here are trading for less than $10, some for less than $5. Of course, this in and of itself does not make the stocks better or worse trades. But for traders who like to trade in size, knowing which of the day's best trading opportunities are priced inexpensively in dollar terms is knowledge worth having.

Four of the stocks in today's report have Short Term PowerRatings of 8, with one stock having a Short Term PowerRating of 9. Our research on short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 tended to outperform the average stock by a margin of more than 8 to 1 within five days' time. Stocks with Short Term PowerRatings of 9 fared even better, outperforming the average stock by a margin of more than 13 to 1 within five days.

Grey Wolf (GW | Quote | Chart | News | PowerRating) Short Term PowerRatings 9. RSI(2): 0.386

International Coal Group (ICO | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 22.07

Cell Genesys (CEGE | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 24.52

New Park Resources (NR | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 23.27

Big Band Networks (BBND | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 34.67

Does your stock trading need a tune-up? Read our special, Free Report, "5 Secrets to Short Term Stock Trading Success" for a refresher course on not just why to buy low and sell high, but specifically how you can use intraday weakness in the market to do so. Click here to get your copy of "5 Secrets to Short Term Stock Trading Success" or call us today at 888-484-8220.

David Penn is Senior Editor at TradingMarkets.com.