With the Nasdaq Composite becoming increasingly overbought ahead
of trading on Monday, there are a number of Nasdaq stocks that
buyers have still not found attractive. And any selling to relieve
conditions in the broader market could help some of these stocks
slide to levels where these same buyers may be inclined to change
Consider this: biotechnology and drug stocks may be vulnerable
to headline risk next week, as the 30th Annual JP Morgan Global
Healthcare Conference gets underway. Heading into trading on
Monday, shares of one biotechnology,
) are well over 1% and moving toward short-term lows above the
200-day moving average.
Note that shares of CELG were trading at yearly highs at the
beginning of the week, and are still up more than 10% from their
last close in
territory in late November. Traders should not be surprised if any
news in the stock is taken as an opportunity for further
Down three in a row and four out of the past five are shares of
Costco Wholesale Corporation
). Selling in the stock has been aggressive enough to take COST
back to oversold territory and fresh, short-term lows above the
200-day. With neutral ratings of 6 out of 10 and a positive,
short-term edge of less than half a percent, COST may still need to
fall further before reaching levels that buyers find
Somewhat larger edges are present in the market for
), though even here additional selling could do a great deal to
increase the positive edge. Shares of VRSN have closed lower for
the past two days in a row, but essentially have been trading
sideways for the past several days. The stock has a "consider
buying" rating of 8 out of 10, and is the highest rated stock in
today's report. Versign has only been trading consistently in
bull market territory
since early December.
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is Editor in Chief of TradingMarkets.com.