Stock Trading: End of Month, End of Quarter, End of Downtrend?
First things first: given all the negativity in the news (when is there not a lot of negativity in the news, though?) it feels great to see the market rally to start the week. With the Dow finishing up more than 100 points, we know there are many traders who have been buying weakness in recent days who are now able to exit their positions into strength and prepare for the next trade.
One big up day does not a rally make. But it is worthwhile to remind ourselves of the potential for higher prices going into not only the end of the month, but the end of the quarter, as well.
We talked about our research into trading near the end of the month a few days ago. If you missed that discussion, or want to review it, you can read that conversation below.
Stock Trading: Finding Edges on Expiration Day and End of Month.
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By the way, if you’re looking for an opportunity to learn more about The Machine, the latest software product from Connors Research, host of Inside The Machine, Phil Suarez, will be holding a free, online webinar on The Machine, Tuesday at 1 p.m. Eastern. For more information, visit us at the link below.
Trade with a Scientific Approach – presented by Phil Suarez, host of Inside The Machine
Here are 7 Stocks You Need to Know for Tuesday.
Up more than 3% ahead of trading on Tuesday, shares of ^BAC^ were exemplary of the gains in financial and banking stocks to start the week. Note that many of these stocks, including BAC, are trading below their 200-day moving averages.
Someone wants to have some ^MSFT^ and ^AMZN^ in their portfolio. Both stocks were up more than 4% intraday on the first trading day of the last trading week of the month and the quarter.
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Shares of MSFT rallied from a three-day pullback, while AMZN advanced to its highest closing level in more than a month.
Also up big after a three-day pullback were shares of ^CMCSA^, which gained nearly 3% ahead of trading on Tuesday. Rival ^DTV^ was higher by approximately 3% and is on its way toward its highest levels of June.
What’s down on an up day? Shares of ^BMY^ pulled back by well over 1% in Monday’s session, closing lower for a second day in a row. News of issues with the company’s diabetes drug have provided a catalyst for traders to take profits in an overbought stock trading just off year to date highs.
Down by more than 3% to close right at its 200-day moving average were shares of ^GRMN^. Monday marked the stock’s second consecutive trading day to the downside and the stock’s first close in oversold territory in two weeks.
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David Penn is Editor in Chief of TradingMarkets.com