3 Top-Rated Nasdaq Stocks for Short-Term Traders
Today’s look at some of the stocks that are pulling back in bull market territory ahead of trading on Wednesday includes stocks that are only recently above their 200-day moving average as well as stocks that are experiencing profit-taking in the wake of new, 52-week highs.
First up is Express Scripts (NASDAQ: ESRX). Shares of Express Scripts have been trading in bear market territory since the summer of 2011. The stock broke out above its 200-day in the first half of January as part of a rally that took ESRX higher for seven out of nine trading days. Selling began immediately afterward and shares of ESRX have since closed lower for four days in a row.
Express Scripts has a short-term, positive edge of three quarters of a percent as of Tuesday’s close.
With a positive edge of more than 1% ahead of trading on Wednesday, shares of Apollo Group (NASDAQ: APOL) pulled back for a second day in a row for back to back closes in oversold territory. Apollo Group has been trading lower ever since rallying to new, 52-week highs in mid-January, and is making its second significant, short-term low as of Tuesday’s follow-through to the downside.
APOL’s first retreat to short-term lows consisted of a two-day sell-off and a pair of closes in technically oversold territory. The stock bounced the next day and finished higher by nearly 4% three days later.
If Express Scripts represents a market pulling back after rallying into bull market territory and Apollo Group is an example of a profit-taking sell-off after an advance to new highs, then Automatic Data Processing (NASDAQ: ADP) is a bit of both worlds. The stock recently closed at its highest level in a year a week ago, and this achievement comes only two months after ADP climbed back above its 200-day moving average.
As of Tuesday’s close, ADP has finished lower for four days in a row, the last three in oversold territory. The selling in the stock has given Automatic Data Processing a positive edge in the short-term of more than three quarters of a percent.
Note that all three of the stocks in today’s report have “consider buying” ratings of 8 out of 10 or more heading into Wednesday’s session.
Be sure to read our latest column from 7 Stocks You Need to Know: Trading a Double Shot of Peet’s Coffee and Tea.
David Penn is Editor in Chief of TradingMarkets.com.