The Hot List: 3 Tech Stocks for Short Term Traders
It may be hard to imagine that stocks managed to close in or near overbought territory on the same day that the Dow shed more than 250 points. But that’s exactly what happened to more than a few stocks still trading in bear market territory – and at or near overbought levels – ahead of trading on Tuesday.
One of the benefits of trading stocks is that even when correlations are strong and the vast majority of stocks appear to be moving as tightly as a school of fish, there are always a few stocks in a few sectors that are far more driven by their own stories than they are by the overall tale the market is telling.
Heading into Tuesday’s session, many examples of these “go their own way” stocks are in the technology sector. This includes semiconductor makers like Advanced Micro Devices (AMD), which finished lower by more than 1% after rallying for four out of the previous five days. AMD traded in overbought territory for two days before sellers arrived to send the stock lower.
Another example from the world of technology stocks in Juniper Networks (JNPR). Even more than AMD, JNPR had become especially overbought in the days leading up to Monday’s session. Shares of JNPR had finished higher for seven days in a row before sellers took over on the first trading day of the week to send JNPR down by more than 1%.
Unlike AMD and JNPR, shares of Adobe Systems Inc. (ADBE) have remained very much overbought ahead of trading on Tuesday. Gaining more than 1% in Monday’s trading, ADBE has now finished overbought for two days in a row.
All three stocks in today’s report were available from research and data available through The Machine. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com