Episode 6 [HD]

Technically speaking, the story of Waste Management's stock is similar to that of many stocks in 2012: rallying from the lows of the fall of 2011 and climbing back into bull market territory, Waste Management shares settled into a trading range... And while this is no guarantee that traders and investors will behave tomorrow as they did yesterday, the snapback rallies in Waste Management after pullbacks into short-term oversold territory are consistent not just with the statistical history... Instead, in just two days, traders were able to knock the stock much lower, sending shares of Waste Management to their lowest level since the stock returned to bull market territory in late January. That said, given the stock's severely oversold condition in the short-term, avoiding the stock altogether likely is a more prudent approach than looking for further immediate trading to the downside. Finishing well off sessions lows, Progressive Waste Solutions already may have begun to attract the sort of buying interest that could send the stock higher short-term. But reading this story on Saturday got me thinking about another waste specialist - namely, Waste Management (NYSE: WM) - whose shares have come under increasingly aggressive selling over the past few days. The stock has rallied sharply from pullbacks into oversold territory during the past several months in particular (note multi-day retreats in WM in mid-February, early March, and again in the first half of April, and subsequent, short-term,... Many of stocks from this group are trading at new, short-term highs after bouncing from oversold conditions of their own from last week.

The weakness offers a long-term buying opportunity for value investors. Franklin Electric Company (Nasdaq: FELE ) operates in two segments, water systems and fueling systems. The water systems segment offers products such as motors and pumps used in various industries. Bancorp (NYSE: USB ) is a large regional bank that offers financial and banking services to customers mainly in the Midwest and Western parts of the country.