5 Top Nasdaq Pullbacks for Traders
The futures were pointing to a weak opening for stocks and the market more than obliged with a steep sell-off as soon as the bell sounded. And if you don’t know by now that we see sell-offs whenever they occur as potential opportunities for short-term stock traders, then you just aren’t spending enough time at TradingMarkets.com.
We don’t mean to speak lightly of the bear market action that has characterized the markets for the past several weeks and months. But we do want to underscore the point that stocks have lives of their own which, while often influenced by the “gravitational pull” of the broader market, still cause stocks to move based on their own fundamentals and technicals, the traders who own the stock and the traders who want to.
For just one example, we saw strength in the broader market near the end of last week that spilled into the beginning of this week. We did not believe that move higher in the indexes was playable from an index perspective – in other words, we would never have recommended buying the SPY or E-mini index futures based on the price action, however bullish in the very short term.
However, on an individual stock basis, the same strength that made the broader markets move higher also helped a number of strong stocks, stocks trading above the 200-day moving average, move higher. And having taken positions in some of these stocks after they had moved lower made it possible for us to take profits by selling into strength as the stocks – and the market – moved higher.
With that in mind, let’s take a look at some of the stocks that are oversold right now that might benefit from any post sell-off bounce the markets may develop next week. Today, I wanted to focus exclusively on Nasdaq stocks given the fact that the Nasdaq so far is the percentage leader to the downside an hour after trading began on Friday.
U.S. Concrete Inc.
(
RMIX |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 6.29
Shares of RMIX only recently rallied above their 200-day moving average in late May, a rally that was accompanied by low Short Term PowerRatings encouraging traders to avoid the stock. The pullback anticipated by these low Short Term PowerRatings has finally arrived, with RMIX moving from a Short Term PowerRating of 2 on June 10 to 9 as of Thursday’s close.
Volterra Semiconductor Corp
(
VLTR |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 15.46
Pullbacks have been very, very good to Volterra Semiconductor in recent weeks. Note the two previous times that VLTR has developed high Short Term PowerRatings of 8 or higher in the PowerRatings chart above. In the first instance, VLTR earned a Short Term PowerRating of 9 on May 21 and three days later had gained nearly 3%. In the second instance, VLTR earned a Short Term PowerRating of 8 on June 2 and within two days closed higher by more than 7%.
Here are a few other stocks that traders looking for pullbacks may want to put on their watchlists:
Syntel Inc.
(
SYNT |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 31.15
Sykes Enterprises Inc.
(
SYKE |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 18.47
WSC Industries Inc.
(
WSCI |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 6.10
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David Penn is Senior Editor at TradingMarkets.com.