With stocks edging higher on Tuesday, here are five stocks whose continued rallies are increasingly suspect.

When markets rally, stocks in general tend to get a boost. Some of those stocks will inevitably be strong stocks that had been previously pulling back—often due merely to profit-taking. The newfound strength in the market is often enough to encourage traders to give some of these stocks that have sold off a second look.

But some of those stocks will inevitably be weak stocks. When weak stocks get pulled higher by the larger tide of a rising stock market, they often become more expensive than they would otherwise be. This makes them increasingly attractive to traders looking to bet against overbought stocks, stocks that have moved too far too fast to the upside.

This overbought condition is reflected in our Short Term PowerRatings, our proprietary rating system. This rating system, which uses volatility, trend, momentum and volume analysis, was the product of historical backtesting involving millions of simulated stock trades--including delisted stocks--from 1995 to 2007.

Stocks at the top of this rating system, stocks that earn Short Term PowerRatings of 10, were found to outperform the average stock by a margin of nearly 17 to 1 after five days.

On the other hand, stocks with Short Term PowerRatings of 1--our lowest rating--were among the worst performing stocks in the market in the short term. We found that stocks with Short Term PowerRatings of 1 actually underperformed the average stock by a margin of nearly 5 to 1 after five days.

This makes 1-rated stocks among the best candidates for traders looking to sell stocks short.

An additional tool we use to spot stocks that have gone too far too fast is the 2-period Relative Strength Index or RSI. We consider stocks with 2-period RSIs of 90 to be overbought, with 2-period RSIs of more than 98 representing extremely overbought conditions that often warrant the immediate attention.

Combined with our Short Term PowerRatings, the 2-period RSI is an especially powerful tool for short term traders.

Arris Group (ARRS | Quote | Chart | News | PowerRating) Short Term PowerRating 1. RSI(2): 98.67

ON Semiconductor (ONNN | Quote | Chart | News | PowerRating) Short Term PowerRating 1. RSI(2): 98.28

Orthofix International N.V. (OFIX | Quote | Chart | News | PowerRating) Short Term PowerRating 1. RSI(2): 95.74

Verifone Holdings Inc. (PAY | Quote | Chart | News | PowerRating) Short Term PowerRating 1. RSI(2): 98.75

Omnicell Inc. (OMCL | Quote | Chart | News | PowerRating) Short Term PowerRating 1. RSI(2): 98.95

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