The markets have resumed their cautious approach as they once again near their 200-day moving averages. Here are five stocks for which that caution has taken the form of potentially promising pullbacks.

We like to remind traders that there are often excellent trading opportunities in the wake of sharp market corrections. In fact, in our experience and in our historical testing, we have found that the sharper the market correction, the better the trading opportunities to the upside left behind in its wake.

But that does not mean that traders have to wait for the markets to crash before stocks develop pullbacks that are deep enough to be worth watching by traders. Many times, as markets move closer to potential resistance levels, stocks manage to find resistance of their own and begin to correct by moving laterally instead of lower.

This lateral movement often does the same job of lowering buying pressure (i.e., overbought conditions) as do sharp market corrections - only usually requiring more time. Nevertheless, in the same way that still waters run deep, markets that appear to be quietly, listlessly moving sideways, can hide what could turn out to be powerful opportunities in strong stocks taking a temporary break in an overall advance.

These are the stocks we look to target. It is true that when markets appear to be at potential crossroads, there will be fewer opportunities than when markets are making strong moves with reactions - pullbacks in overall uptrends, bounces in overall downtrends. In these instances, stocks such as the ones in this report are often best placed in watchlists to see if they continue to move lower, or earn PowerRatings upgrades. Traders should also watch to see if the 2-period Relative Strength Index values on these stocks continue to move lower - at least below 10 and preferably under 2 - before looking to buy these names on intraday weakness (i.e., a limit order 2-6% below the previous day's close).

Four of the stocks in today's report have Short Term PowerRatings of 8, while the fifth stock has a Short Term PowerRating of 9.

Our research into short term stock price behavior, research that is based on millions of simulated short term trades between 1995 and 2007, indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 fared even better, beating the average stock by a margin of more than 13 to 1 over the same time period.

I have also included the 2-period Relative Strength Index (RSI) values for each stock so that traders can monitor how oversold these stocks are relative to where we like them to be before they become optimal trading candidates to the long side.

We consider stocks with 2-period RSIs of less than 10 to be oversold, with stocks that have 2-period RSIs of less than 2 being considered especially oversold and often warranting immediate attention by traders looking to buy weakness.

Inter Parfums Inc. (IPAR | Quote | Chart | News | PowerRating) Short Term PowerRatings 9. RSI(2): 26.89

Rogers Communications (RCI | Quote | Chart | News | PowerRating) Short Term PowerRatings 8. RSI(2): 15.32

Penn Virginia Resource Partners (PVR | Quote | Chart | News | PowerRating) Short Term PowerRatings 8. RSI(2): 5.42

Ctrip.com International Ltd. ADS (CTRP | Quote | Chart | News | PowerRating) Short Term PowerRatings 8. RSI(2): 8.27

CEC Entertainment (CEC | Quote | Chart | News | PowerRating) Short Term PowerRatings 8. RSI(2): 19.04

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 the Senior Editor for TradingMarkets.com.