3 Nasdaq Stocks for Short-Term Traders
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 overbought conditions in the broader market could help some of these stocks slide to levels where these same buyers may be inclined to change their minds.
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, Celgene Corporation ( CELG ) 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 oversold territory in late November. Traders should not be surprised if any news in the stock is taken as an opportunity for further profit-taking.
Down three in a row and four out of the past five are shares of Costco Wholesale Corporation ( COST ). 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 attractive.
Somewhat larger edges are present in the market for Verisign ( VRSN ), 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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David Penn is Editor in Chief of TradingMarkets.com.