5 Best Day Trading Stocks to Buy in September 2021

Thanks to the volatile stock market, there have been ample trading opportunities in markets.  Unlike long-term investing, day traders mainly look at technical indicators and attempt to benefit from a stock’s short-term price movement which can either be on the downside or the upside. Here are the five best day trading stocks for September 2021.

1. Sundial Growers (NYSE: SNDL)

Sundial Growers is a penny cannabis stock. The company was once very popular on Reddit groups and rose to a high of $3.96 amid the frenzy. The stock has since come down and trades at a fraction of the 52-week highs that it hit earlier this year. To be sure, there has been a general sell-off in all cannabis stocks amid receding optimism over federal cannabis legalization in the US. That said, legalization is something that might eventually happen as many states have already legalized adult-use marijuana.

Sundial Growers is a cash-rich company with a positive forecast

Sundial Growers is a cash-rich company. The company had capitalized on the spike in its share price to issue more shares. It now has an investment arm that is generating decent returns for the company. While SNDL stock has come down sharply from the peaks, it seems to have bottomed and looks like a good day trading stock to buy in September.

The technicals for SNDL stock look weak though. It is facing stiff resistance at the 50-day SMA (simple moving average). It also trades below the 100-day and 200-day SMA. There was also a death cross formation in the stock last month after its 200-day SMA fell below the 50-day SMA. That said, the valuations now look attractive especially considering the massive cash on the company’s balance sheet. If you are looking at a day trading stock that you can hold for the medium to long term, SNDL looks like a good bet.

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2. GameStop (NYSE: GME)

GameStop was the original poster child of meme stocks. A lot of hedge funds burned their fingers betting against the gaming retailer. Melvin Capital went almost bankrupt shorting the stock. Those betting against GME stock have lost billions even as a lot of retail investors made money by betting on a turnaround in the company.

GME is a good day trading stock

To be sure, GME is among those Reddit stocks that have questionable fundamentals. The company recently released its earnings and like the previous two earnings calls, it did not take analysts’ questions. The stock had fallen after the earnings release. Wall Street analysts have been on the sidelines amid the frenzied rally in the stock and some of them even stopped covering it.

However, if you are looking for a day trading stock in September, you could look at GameStop. While it is not one of those stocks that would interest long-term investors, it certainly is among the favorite names for day traders.

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3. ContextLogic (NYSE: WISH)

WISH is also among the favorite stocks on Reddit group WallStreetBets. The stock trades at a fraction of its highs. However, it can rebound from these levels in the medium to long term. Given the stock’s popularity among Reddit groups, it is also prone to a short squeeze.

WISH stock is a short squeeze candidate

With its high short interest, there is always the possibility of a short squeeze in WISH stock. Overall, the stock looks like a good day trading stock to buy in September. The stock looks weak technically and trades below the 50-day, 100-day, and 200-day SMA. However, it is now getting near the oversold zone and has a 14-day RSI (relative strength index) of 37.6. RSI values below 30 signal oversold positions.

Notably, WISH is among those Reddit names that are not merely meme stocks and day trading opportunities. The company is a good way to play the social e-commerce story and also bet on the changed business strategy where WISH is focusing on retaining existing customers and cutting down on its perennial losses.

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4. Apple (NYSE: AAPL)

Apple is the largest company on the planet with a market cap of $2.5 trillion. While the stock is popular among retail investors as well as Reddit groups, it is not the usual day trading stock. However, the company is set to unveil the next iPhone at the Apple event tomorrow. The stock could present good day trading opportunities this week.

Apple looks like a good day trading stock for this week

Looking at the technicals, AAPL stock trades above the 50-day, 100-day, and 200-day SMA. The stock has come off its highs but has managed to hold its 50-day SMA. It could rebound from the level and positives updates at the Apple event could also spur buying interest. Apart from the day trading opportunities that Apple could present this week, it is also among the stocks that you can hold for the long term.

The stock has received a buy rating from 32 analysts while ten rate the iPhone maker as a hold. The remaining two analysts have a sell rating. Apple’s median target price of $169.28 is a 13.6% premium over current prices.

Analysts are bullish on Apple stock

Last week, Morgan Stanley reiterated its overweight rating on Apple ahead of the event. “Investor expectations remain muted which creates a compelling setup into the fall should early iPhone 13 data points outperform expectations,” Morgan Stanley said in its note.

“Driving the more bearish institutional investor sentiment is the prevailing view among bears that with a more modest period of technology upgrades, iPhone shipments/revenue are likely to decline double digits, in-line with past iPhone s-cycles. However, we disagree with this thesis,” said analyst Katy Huberty in her note. Huberty expects Apple to launch a new Apple Watch, a new iPhone, and even a new AirPod at the event. There are also speculations that the new iPhone might also feature satellite connectivity.

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5. Naked Brands (NYSE: NAKD)

Naked Brands is another good day trading stock for September. The stock had risen in August after it announced that it has identified a merger target. It has since come down from those levels.

The company has exited the Bendon operations earlier this year to focus on the e-commerce operations and the Frederick’s of Hollywood brand. It capitalized on the Reddit-driven rally earlier this year and raised a lot of cash. In its most recent update, NAKD said that has $270 million worth of cash and cash equivalents on its balance sheet. It wants to use the cash for acquisitions and to grow the online business.

Naked Brands stock could rise on acquisition news

Naked Brands’ stock could rise once the company announces more details about the acquisition. The stock is looking mixed on the charts though. It trades above the 50-day SMA but is below the 200-day SMA. Currently, the stock is trading at the 100-day SMA while the 14-day SMA is a neutral indicator.

All said, considering the impending announcement about the acquisition, NAKD looks like a good day trading stock for September.

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