6 Oversold Stocks Ready to Bounce Higher

NEW YORK (TheStreet) -- Anyone who spends time in the financial markets quickly learns that everything about an efficient market learned in school can get thrown out the window.

Some may question the use of and utility of technical analysis. Technical analysis gets a bad rap because so many "gurus" haven't put the time or the effort needed into learning the difference between a pattern and what is random noise. A sure sign of weakness is someone giving advice without knowing the odds and expected edge.

Technical analysis is like sex: Most think they perform a lot better at it then they really do. If someone says "this stock is good/bad because of _________(add reason here)," ask them how many other similar situations like the current one they have back tested and what is the odds, risk and edge. If all you hear is crickets in the background, you will know how much weight to give the advice.

Here is a list of six stocks that are oversold on the weekly charts. My preferred method to exploit the weakness is to sell put options or write covered calls (pretty much the same thing). The average trade lasts three to four weeks. I am boring, so I like selling time premium, but others have successfully adjusted and use call options to liven up the party.