5 Stocks for the Next 5 Days: Big Edges in Biotech and Retail
The number of stocks pulling back in bull market territory remains modest, as the broader stock market moved higher for a fourth day out of the past five heading into midweek.
Traders are likely to find bigger bargains when stocks in general are in retreat. And the current market’s ability to shrug off news that is less than positive is a reminder that traders will need to be patient to wait for bigger edges in a wider variety of stocks, or be narrowly focused on the best of those edges that are available in sectors like health care and retail.
Here are 5 Stocks for the Next 5 Days.
Down three in a row are shares of Weight Watchers (WTW) ahead of trading on Wednesday. The current short term correction in WTW is the stock’s second since rallying back into bull market territory in mid-October.
How many more sellers are in the market for Autonation (AN)? Pulling back for a fourth day in a row ahead of trading on Wednesday, the automobile dealership has also closed in oversold territory for four straight sessions. Autonation’s last multi-day sell-off at the end of September was met with buying for six out of the next seven sessions.
Shares of Smart Balance (SMBL) bounced by more than 3%, after a sharp pullback of more than 16% over three days. The stock is set to open in neutral territory on Wednesday, still far closer to recent lows than recent highs.
Also pulling back to short term lows ahead of trading on Wednesday were shares of Pharmasset Inc. (VRUS). Trading at 52-week highs just a month ago, VRUS is now down three out of the past four sessions.
Oncothyreon Inc. (ONTY) has closed in oversold territory above the 200-day moving average for last two days and has finished lower for seven days in a row. Additional weakness in the stock could help bring buyers off the sidelines, as happened during ONTY’s pullback in late September.
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David Penn is Editor in Chief of TradingMarkets.com