Traders Send Stocks Reeling to End Week, Dow Industrials Down Three in a Row: 7 Stocks You Need to Know for Monday
In almost a reverse of Thursday’s trading, traders sold stocks aggressively mid-session. Leading the S&P 500 lower among stocks above the 200-day moving average was ^S^, which dropped by well over 4%.
Buyers remained on the offensive in the oil patch, while credit card companies (see Mastercard and Visa below) are among the latest group of stocks to experience heavy selling.
While credit card companies were pulling back, other financials were finding bidders after recent lower closes below the 200-day moving average. Traders should be wary of these stocks should any continued advance put them in overbought territory below the 200-day over the next few sessions.
Here are 7 Stocks You Need to Know for Monday
Oil stocks gained for a second day in a row on Friday. Typical of the rally in this sector were advances in stocks like ^SLB^ and ^NOV^. NOV rallied by more than 1%.
Financial stocks bounced after two days of strong selling. Note, however, that many of these stocks are trading below their 200-day moving averages, including both ^GS^ and ^MS^.
Despite Friday’s rally, shares of MS are still below their 5-day moving average.
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Down two out of the past three sessions are credit card companies ^MA^ and ^V^ (below).
Even after the recent pullbacks, shares of Visa are still up well over 2% from their last oversold close early in the second half of May.
We’ve been keeping an eye on ^COST^ – and noted the stock in yesterday’s 7 Stocks You Need to Know column after it pulled back for two days in a row.
Shares of Costco have now closed lower for three days in a row and are oversold above the 200-day moving average.
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David Penn is Editor in Chief of TradingMarkets.com