7 Stocks You Need to Know for Tuesday: Sell-Off Leads to Merger as TXN Buys National Semiconductor
With semiconductor stocks closing lower and lower each day, high probability traders weren’t the only ones looking to “buy the selling.”
Less than 10 minutes after the close, CBNC announced that Texas Instruments ^TXN^ was acquiring ^NSM^. As noted below, shares of NSM had been trading lower for the past few days, closing in oversold territory just above the 200-day moving average on Monday.
Elsewhere in the market, some of the better performing blue chip stocks ahead of Tuesday’s trading were stocks like ^IRM^, which rallied well over 2% in a breakout to new highs, and ^F^. Shares of Ford gained nearly 3% as the stock closed higher for a fourth day in a row, Ford’s second close in overbought territory.
Here are 7 Stocks You Need to Know for Tuesday.
Who’s selling Apple? Shares of ^AAPL^ retreated for a fourth day in a row, pulling back by more than 1% on Monday.
AAPL is as oversold now as it was the last time it closed down for four days in a row back in the second half of January.
As just one example of the weakness in semiconductor stocks, shares of ^AMD^ (below) led the group lower by more than 3% ahead of trading on Tuesday.
Shares of AMD have closed down for three consecutive trading days and are now trading in oversold territory above the 200-day moving average.
Also down three in a row were semiconductor stocks like ^NSM^ and ^KLAC^. Like AMD, these two stocks are also trading in oversold territory.
Up five straight sessions and increasingly overbought above the 200-day moving average are shares of ^BIDU^.
BIDU has closed in overbought territory for the past three days in a row.
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Shares of ^NVDA^ (below) have closed lower for four out of the past five trading days and are now oversold above the 200-day moving average.
NVDA has closed at its lowest level, and most oversold, in more than a week.
Closing lower for a sixth day in a row ahead of its scheduled earnings announcement on Tuesday were shares of ^KBH^. The stock pulled back by more than 1% Monday to close below its 200-day moving average for the first time since mid-December.
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David Penn is Editor in Chief of TradingMarkets.com.