Retail Routed as Traders Await Wal-Mart, Home Depot Earnings: 7 Stocks You Need to Know for Tuesday
On a day characterized by strong selling in retail, buyers were active in selected banks, credit card companies and other financials, many of which had entered the week very oversold.
That said, both ^LOW^ and ^JCP^ announced quarterly earnings on Monday, and sellers took the opportunity to send shares of both companies dramatically lower on the day. Both stocks pulled back by more than 3%, but of the two, LOW is the one already in oversold territory above the 200-day.
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Here are 7 Stocks You Need to Know for Tuesday.
^WMT^ is scheduled to report quarterly earnings on Tuesday. The stock closed higher for a third day in a row in Monday’s trading, finishing the session in overbought territory above the 200-day moving average.
Dropping by more than 12% on Monday were shares of ^NYX^ (below).
Shares of NYX had closed lower for two out of the previous three days before Monday’s sharp sell-off. The stock is only days off its highest levels of the year.
^AMZN^ pulled back by more than 4% ahead of trading on Tuesday. It was the stock’s second consecutive lower close.
AMZN is now oversold above the 200-day moving average. In fact, the stock is at its most oversold since March.
What does it mean when a stock is oversold above the 200-day moving average? Check page 15 of Larry Connors’ book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs.
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Down two days in a row ahead of its scheduled earnings report is ^HD^. The stock is not yet oversold, and has been largely rangebound for the past several days.
Trading below its 200-day is ^FCX^. FCX had been trading above its 200-day moving average consistently since September 2010, and has since closed below that level for the past four days in a row.
Rallying into strength above its 5-day moving average after a five-day pullback were shares of ^AXP^ (below).
AXP closed higher by more than 1% after finishing the last two sessions in oversold territory above the 200-day moving average.
Profit-taking in the safety stocks? Shares of ^KFT^ pulled back by nearly 1% on Monday after opening higher. KFT had closed in overbought territory above the 200-day moving average for two days in a row before Monday’s pullback.
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David Penn is Editor in Chief of TradingMarkets.com