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The Stock List: From Apple to Coca-Cola to Gold, Sell-Off Puts Top Stocks On Sale

  • September 22, 2011
  • David Penn

Our stock list of 7 Stocks You Need to Know for Friday focuses on those stocks that continue to trade above the 200-day moving average. Why?

As Larry Connors wrote in the book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs

We looked at over 8 million trades of stocks from 1995-2007. We then looked at the 5-day behavior of these stocks when they were above the 200-day moving average and below the 200-day moving average … the gains have been better above the 200-day moving average.

Read the rest of the chapter (“Rule 3 – Buy Stocks Above Their 200-day Moving Average, Not Below”) in Short Term Trading Strategies That Work. If you don’t have a copy of the book, you can get one for free here.

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Shares of ^HPQ^ were met with selling on news that former eBay CEO Meg Whitman had been tapped to replace HP’s outgoining CEO Leo Apotheker. The stock finished lower by more than 6% ahead of Friday’s trading. 

Meanwhile, an earnings beat by ^NKE^ sent shares of that stock higher in afterhours trading. 
Here are 7 Stocks You Need to Know for Friday 
Down more than 2% and closing lower for a second day above the 200-day moving average ahead of trading on Friday were shares of both ^KO^ and ^AAPL^. Of the two, shares of KO are trading in oversold territory. 
A number of gold stocks have also begun to retreat above the 200-day. Closing lower for a second straight session were such major miners as ^NEM^ and ^AUY^. Shares of NEM pulled back by more than 3% while AUY sold off by more than 10% to finish just outside of oversold territory.

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Two of the more popular growth stocks have returned to oversold territory above the 200-day moving average. Down three days in a row and trading at 10-day closing lows are shares of ^LULU^. Shares of ^GMCR^ have also pulled back to 10-day closing lows after selling off for two out of the past three sessions. GMCR finished lower by more than 5% on Thursday.

Lower for two out of the past three but not yet trading in oversold territory are shares of ^CMG^. Shares of CMG trade above their 200-day moving average and closed down more than 2% ahead of Friday’s trading.

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David Penn is Editor in Chief of TradingMarkets.com