Today's list of stocks that have pulled back to levels where
traders, in the short-term, have been more inclined to buy than
sell includes a pair of hospital stocks and a health plan provider
newly-off 52-week highs.
Let's take a look at the hospital stocks first. Shares of
Community Health System
) rallied to new, 6-month highs at the end of February, culminating
a five-day streak of higher closes during which CYH gained more
than 20%. And insofar as gains like these tend to beg for
profit-taking, CYH has pulled back in the days since, finishing
lower for the last three days in a row, including a drop of more
than 3% on Friday.
The correction in Community Health Systems has helped the stock
earn a major, three-point ratings upgrade from a neutral, 6 out of
10, to a "consider buying" 9 out of 10. CYH also has a positive
edge in the short-term of nearly one and a quarter percent.
With a short-term, positive edge of nearly 1%, shares of
HCA Holdings Inc.
) have closed lower for the past four days in a row, and are now
technically oversold just above the 200-day moving average.
Although crossing above its 200-day moving average in late January,
HCA only has been trading consistently above that level for a
little over a week. And the fact that the stock is less than a
dollar above the 200-day suggests that the stock could slip back
into bear market territory even as part of an eventual move higher.
This would be similar to HCA's last, multi-day pullback in
mid-February, when the stock traded below its 200-day moving
average as part of a three-day sell-off, only to rally for six out
of the following seven sessions and gaining more than eight and a
Pulling back to its first, significant short-term low since
climbing back into bull market territory at the beginning of the
year, shares of
Molina Healthcare Inc
) have finished lower for two days in a row. But pulling back just
a bit, we can see that the correction in the stock is much more
significant insofar as MOH is also lower for four out of the past
five days, and eight out of the last ten.
Molina Healthcare has earned "consider buying" ratings of 8 out
of 10, courtesy of a one-point upgrade the stock earned very early
in the Friday session. The stock, which traded at new, 52-week
highs as recently as mid-February, also has a positive edge in the
short-term of more than three quarters of a percent.
Precise rules. Higher Edges. Full Disclosed Test Results.
to learn more about The Long Pullbacks Strategy by Larry Connors
and Cesar Alvarez