Swing Trading: Early Strength Turns to Late Weakness on Debt Ceiling Concerns
What started out as a potential profit-taking day for many swing traders who had been buying weakness in recent days turned into an opportunity for additional buying on weakness for many as the stock market’s early gains faded over the course of the trading day.
Markets like the Nasdaq 100 and the S&P 500 are set to open again in oversold territory on Thursday. Most sectors, from technology and financials to basic materials and retails ended the Wednesday session largely unchanged, meaning continued oversold conditions in many instances.
The session’s biggest gainers were metals and mining stocks like ^TIE^, which soared by more than 6% after a deep, three-day pullback, and ^NEM^ which gained more than 3% to close higher for a second day in a row.
Remember Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs is now available for free in paperback or as a pdf download. Click the link above to get your copy.
*
Here are 7 Stocks You Need to Know for Thursday.
After closing lower for five days in a row, including a drop below the 200-day, shares of ^NWSA^ rallied by more than 3% to lead the S&P 100 on Wednesday.
Shares of Caterpillar ^CAT^ closed higher by more than 1% ahead of trading on Thursday. The stock had pulled back for three days in a row, closing just outside of oversold territory before Wednesday’s rally.
Also up after three consecutive lower closes were shares of both ^V^ and ^MA^.
Among the companies reporting quarterly earnings on Thursday are ^JPM^ and ^GOOG^.
Shares of JPM were modestly higher after a three-day pullback. The stock has been trading below its 200-day moving average since early June. Google edged higher ahead of its scheduled earnings report, as well, gaining for a second day in a row . Shares of Google have been trading below their 200-day moving average since mid-April.
Note that yesterday’s PowerRatings Stock of the Day, Temple Inland, rallied into strength in Wednesday’s session, gaining more than 1%.
For today, our PowerRatings Stock of the Day is ^FAST^.
Shares of FAST earned a PowerRatings upgrade late in the trading day on Wednesday. Heading into Wednesday’s session, the stock had closed lower for two days in a row, the last day in oversold territory. FAST has not closed in oversold territory above the 200-day in more than a month.
David Penn is Editor in Chief of TradingMarkets.com