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.