Energies Up, Foods Down as Stocks Snap Back from Oversold Lows: 7 Stocks You Need to Know for Thursday
Buyers continued to bid energy shares higher on Wednesday, helping stocks like ^NOV^ and ^HAL^ lead the S&P 100. To the downside, safety stocks and consumer staples like ^KFT^ are experiencing significant rotation away.
KFT has closed lower for three days in a row and is oversold above the 200-day moving average. The same is true with drug stocks like ^PG^, also down three in a row and oversold heading into trading on Thursday.
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Here are 7 Stocks You Need to Know for Thursday.
Shares of ^AAPL^ rallied into strength above the 5-day moving average ahead of trading on Thursday. The gains in AAPL come in the wake of the stock’s three-day pullback into oversold territory above the 200-day moving average.
Pulling back for a fourth trading day in a row heading into Thursday’s trading were shares of ^COST^ (below). COST was among those stocks highlighted in yesterday’s report on the eve of the company’s earnings announcement.
COST sold off by more than 1% on Wednesday, closing at its lowest level since mid-March.
A tale of two telecoms: yesterday in 7 Stocks You Need to Know, I pointed out the overbought conditions in ^S^. Today, consider the pullback in shares of ^VZ^ (below), which has closed lower for three out of the past four trading days.
Down more than 1% on Wednesday, shares of Verizon are now at their most oversold levels since early April.
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In addition to strength in oil and gas companies, shares of ^FCX^ (below) continued to gain ground, moving back above their 200-day moving average briefly intraday.
If buyers follow-through in bidding FCX higher, the stock may find itself on the bullish side of its 200-day moving average and off the radar of many short sellers looking for overbought markets below the 200-day.
Retail is neither gone nor forgotten – at least not on the high-end. Shares of ^TIF^ were up well over 1% ahead of their scheduled quarterly earnings announcement on Thursday.
^GS^ continues to trade below its 200-day moving average. Should the stock resume its advance, it will be interesting to see how traders handle increasingly overbought conditions in the widely-watched, widely-traded financial.
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David Penn is Editor in Chief of TradingMarkets.com