Traders Seek Safety as a Volatile Third Quarter Draws to a Close
The volatility of the third quarter of 2011 continued up until the very last day, with stocks plunging by more than 2% and returning to oversold territory below the 200-day moving average. Among the most aggressive selling ahead of Monday’s open were the declines in stocks like ^MU^, off by more than 14%, and ^WYNN^. Shares of WYNN pulled back by more than 8% and has closed lower for eight out of the past nine sessions.
Bankruptcy rumors sent shares of ^EK^ plunging by more than 50%. The company has denied the rumors, but the stock is now trading at its lowest level since dropping below its 200-day moving average in late January.
Among the companies reporting quarterly earnings on Monday are ^EMN^. Shares of EMN dropped by more than 3% on Friday and have been trading below their 200-day moving average since early August.
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Here are 7 Stocks You Need to Know for Monday
Consumer staples stocks were among the few sources of strength on the final trading day of the week. Up by more than 1% were stocks like ^MO^ and ^WAG^. Of the two, Altria Group is the stock that continues to trade above its 200-day moving average.
Following through to the upside and closing back above its 200-day moving average for a second day ahead of trading on Monday are shares of ^DPS^.
Profit-takers swooped in quickly on recently bouncing financials. Among the most aggressive selling was the selling in the market for shares of ^MS^, which fell by more than 10%.
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High end retailers have begun to come under exceptional selling pressure in recent days. Down three in a row and oversold above the 200-day moving average are shares of ^RL^. Shares of RL pulled back by more than 7% in Friday’s session.
Also lower on Friday were retailers like ^M^, off by more than 3% above the 200-day moving average, and ^JWN^. Shares of JWN closed lower by 2%, finishing lower for a fourth day in a row ahead of Monday’s trading.
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David Penn is Editor in Chief of TradingMarkets.com