Swing Trading: Stocks Reverse Higher, Send Markets Back Toward Overbought Levels
After an initial move lower when trading opened on Friday, stocks reversed to head higher over the balance of the session, taking the S&P 500 higher by more than 1% and the Nasdaq up by more than 2%.
Among the major equity indexes, the Russell 2000 – basis the ^IWM^ – was the one that did not return to overbought territory at the end of Friday’s session.
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Here are 7 Stocks You Need to Know for Monday
Among the biggest gainers ahead of trading on Monday are oil stocks like ^HAL^ and ^BHI^. Shares of HAL closed higher by nearly 4%, closing higher for three out of the past four trading days. BHI has also closed up for three out of the past four sessions, finishing higher by more than 4% on Friday.
Up more than 6% after closing lower for two days in a row were shares of ^GMCR^. Shares of GMCR gained more than 6%.
Also making big gains on Friday were fellow coffee stocks ^PEET^, which finished up nearly 4%, and ^SBUX^. Shares of SBUX gained more than 2%.
What’s down on an up day? Shares of ^YHOO^ finished lower by 1% on Friday, closing lower for a third day in a row. Note that Yahoo! has been trading below its 200-day moving average since May.
One day after Warren Buffett’s big deal with ^BAC^, the stock was holding its ground just outside of overbought territory below the 200-day moving average.
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David Penn is Editor in Chief of TradingMarkets.com