Swing Trading: Stocks Settle Into Range as Oversold Conditions Ease
Heading into trading on Monday, traders are likely to find largely neutral conditions in most markets. After rallying into overbought territory then plunging into oversold territory, traders and investors alike appear more than ready to take a break.
Volatile but inconclusive trading is what we are likely to see until there is a greater sense of confidence (or pessimism, for that matter) with regard to a resolution to the political crises in Washington and Europe. In the meanwhile, traders are best served by minding their positions carefully, moderating their exposure, and sticking with the trading discipline that will allow them to both prosper and live to trade another day.
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Here are 7 Stocks You Need to Know for Monday
Surprising traders and investors with its earnings beat after hours on Thursday, ^GOOG^ soared by well over 12% in Friday’s session.
The rally sent shares back above their 200-day moving average. Google had been trading below that level since mid-April.
^WYNN^ and ^HAL^ are among the companies scheduled to report quarterly earnings on Monday. Shares of WYNN closed near recent-year-to-date highs on Friday, gaining well over 2%. Along with other energy stocks, which led the S&P 100 on the final trading day of the week, HAL rallied in Friday’s session. Shares of the stock had closed lower for four out of the previous five trading days.
Also scheduled to report quarterly earnings on Monday is ^IBM^. The stock has been rangebound for the past week after trading near year-to-date highs.
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Continuing to pullback above the 200-day moving average are middle-to-lower-end credit card companies like Capital One Financial, noted in yesterday’s 7 Stocks You Need to Know, and ^DFS^. Shares of DFS pulled back by well over 2% intraday ahead of trading on Monday, before rallying to finish just over breakeven for the day.
Shares of ^CLX^ rallied to their highest levels of the year, gaining nearly 9% on news that investor Carl Icahn was making an unsolicited bid for the company.
Aerospace/defense stocks continue to be aggressively sold. In addition to General Dynamics, which is now trading below its 200-day moving average, shares of ^LMT^ have pulled back for seven days in a row. Of those seven sessions, the last four have finished in oversold territory above the 200-day.
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David Penn is Editor in Chief of TradingMarkets.com