The Hot List: 3 Health Care Stocks for Short Term Traders
Health care stocks typically are not known for bringing a lot of sizzle to a trading portfolio. But with these three stocks climbing toward levels from which they have tended to underperform – if not outright reverse and head lower, traders could see more than the usual share of fireworks from at least a few of the stocks from the health care sector.
Which stocks? Shares of Tenet Healthcare Corp (THC) have traded in bear market territory since the second half of July. Of late, however, it appears as if the shorts are in the process of locking in gains. This, of course, means buying back shares that were previously sold short and, in the process, driving shares of THC to overbought levels. Heading into trading on Thursday, THC is up well over 1% after finishing higher for five days in a row.
Also on a one-way tear to the upside – including a five-day win streak – are shares of Syneron Medical Ltd. (ELOS). The stock’s recent rally has brought shares to their highest closing level since August – around the time ELOS slipped into a bear market.
What is interesting about ELOS is that the stock went on a four-day consecutive win streak in mid-August only to fall by more than 13% over the next four sessions. Another four-day bounce in mid-September was followed immediately by a plunge in the stock of nearly 5% in a single day.
The third health care stock in today’s list is Molina Healthcare (MOH), which has closed higher for five days in a row, up six out of the past seven.
In gaining more than 10% on Wednesday, shares of MOH were among the better performing stocks not just in the health care sector, but in the broader market as well. MOH is set to open Thursday morning near its highest levels since falling below the 200-day moving average in early August.
All three stocks in today’s report were available from research and data available through PowerRatings. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com