One thing a down market almost always guarantees is a fresh set of pullbacks for traders who like to buy weakness and sell strength.

Many a wise guy has remarked on the idea that the financial markets are one of the few places where people are more eager to buy as prices go up. Black Friday sales after Thanksgiving can make a retail outlet’s year. Businesses have managed to make every holiday an opportunity to lower prices--and consumers typically have responded with huge demand every time.

But when it comes to stocks, the idea of buying stocks as they become cheaper--in the same way that we buy so many other things--comes a little difficult to some short term stock traders.

One of the more unique factors of our Short Term PowerRatings is how the ratings of stocks--in certain situations--actually improve the lower a stock gets. Why? Because if that stock is a strong stock, trading above its 200-day moving average, then our research tells us that the stock is more likely to outperform the lower it gets.

It sounds counter-intuitive, but it is actually a very commonsensical notion—backed up by more than a decade of model-driven historical backtesting. We look to buy stocks when they are low so that we can sell them as they breakout. For us, a stock that closes up 2% in a few days is more likely to be an occasion to take profits rather than start a new position. That is because that stock that is up 2% today is a stock that was down 10% the day before--or down five days in a row, or dramatically oversold. And it is in these conditions where we like to buy stocks for short term trades.

This is where the time-tested idea of buying low and selling high comes from, the idea of buying value, of something someone has mistakenly tossed out that is actually more valuable than people realize. Opportunities such as these abound in the stock market as traders take profits on big winners, bringing those stocks down to a level where they become attractive again.

All five stocks in today’s report have Short Term PowerRatings of 8 or higher. Our research, looking at short term stock behavior between 1995 and 2007, indicates that stocks with Short Term PowerRatings of 8 outperformed the average stock by a margin of more than 8 to 1. Stocks with Short Term PowerRatings of 9 did better, besting the average stock by a 13.5 to 1.

Our highest rated stocks, those with Short Term PowerRatings of 10, were all the more impressive in the short term. Based on our research, 10-rated stocks outperformed the average stock by a margin of more than 16 to 1.

I have also noted the 2-period Relative Strength Index values for each stock so that traders can see just how oversold these names are as of the close on Monday.

Newmarket Corporation (NEU | Quote | Chart | News | PowerRating) Short Term PowerRating 10. RSI(2): 46.29

Lindsay Corporation (LNN | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 2.76

RPC Inc. (RES | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 59.02

Universal Forest Products (UFPI | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 42.44

Tyson Foods Inc. (TSN | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 77.87

There are five things that every successful short term stock trader knows about trading markets like these. We have published all five in a new, special report called "5 Secrets to Short Term Stock Trading Success" now available for free. Learn what key factors are involved in turning mediocre speculators into professional-grade, short-term stock traders—and how our Short Term PowerRatings can play a part. Click here for your free report—or call us today at 888-484-8220.