Late Buying Stampede Sends Stocks from Session Lows to Highs
Turnaround Tuesday indeed!
Buyers rushed into the market with an hour left in Tuesday’s trading to send the stock market from near its lowest levels of the day to near its highest. With disappointment over the Apple iPhone announcement (more on Apple below) and the continued saga of Fed Chairman Ben Bernanke’s testimony before Congress, stocks seemed on track for another poor finish. But with buyers entering the market and forcing short sellers to cover, the bounce in stocks was swift, sharp and sudden.
Heading into Wednesday’s trading, stocks like ^MS^ and ^CLF^ were up double-digits below the 200-day. Up more than 7% were both ^F^ and ^FCX^.
Note that among the companies scheduled to announce quarterly earnings on Wednesday are ^COST^, ^MAR^ and ^MON^. Of the three, COST shares are trading above their 200-day moving average and are trading in oversold territory after pulling back for 5 out of 6 sessions.
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Here are 7 Stocks You Need to Know for Wednesday
Shares of ^AAPL^ pulled back to their most oversold levels in months, selling off by more than 5% intraday in Tuesday’s trading before finishing near breakeven. The appearance of iPhone 4S, rather than iPhone 5, was largely blamed for the aggressive selling on Tuesday – the stock’s seventh consecutive lower close.
Also pulling back above the 200-day are shares of both ^MA^ and ^V^.
Shares of Mastercard led the S&P 100 lower early on Tuesday, dropping by more than 5% before reversing higher to end lower by just under 1%. Visa pulled back by more than 2% before rallying to finish in positive territory after closing lower for four out of five trading days.
Also headed for a down close before reversing higher in the market’s final hour were shares of ^AMZN^. Shares of AMZN had closed lower for three out of four sessions before Tuesday’s reversal.
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Shares of ^YHOO^ climbed higher for a second day in a row, gaining more than 6% and closing back above its 5-day moving average. Any significant follow-though buying in Yahoo! on Wednesday could easily put the stock in overbought territory below the 200-day moving average heading into the second half of the week.
Gaining ground ahead of its scheduled earnings announcement on Wednesday are shares of ^MON^. The stock closed higher by more than 5% and has been trading below its 200-day moving average consistently since mid-September.
The Daily Double 7 for Wednesday is ^NEM^. Shares of NEM pulled back by more than 3% to finish at a new, 7-day closing low above the 200-day moving average on Tuesday.
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David Penn is Editor in Chief of TradingMarkets.com