TradingMarkets 7 Stocks You Need to Know for Friday: AMZN, KFT, MSFT, NFLX, F, YHOO, UA

Overbought conditions continue to characterize the stock market heading into the final trading day of the week. As end of month strength draws more and more buyers into the market, the likelihood of profit-taking and a potential pullback in the near-term, potentially as early as next week, has grown.

*Special note: The TradingMarkets 2011 Spring Swing Trading College is back! Click here now to save your spot at Larry Connors free, live webinar presentation on the Swing Trading College and find out why this semester may be the biggest yet.

Here are 7 Stocks You Need to Know for Friday.

Shares of ^AMZN^ (below) rallied from exceptionally oversold conditions on Thursday. closing lower for six straight trading days, the last four in oversold territory above the 200-day moving average, AMZN gained more than 5% ahead of its earnings beat after the market’s close on Thursday.

Pulling back for a third straight session and now oversold above the 200-day moving average are a pair of consumer staples stocks in H.J. Heinz and  ^KFT^ (below).

KFT chart

KFT closed lower by more than 1% on Thursday and has closed in oversold territory for the past two trading days.

Up four days in a row following a three-day pullback were shares of ^MSFT^. MSFT reported quarterly earnings on Thursday that exceeded analyst estimates.

Leading the S&P 500 on Thursday was ^NFLX^ (below) which soared by more than 15% to take out the stock’s previous long-term high set in early December 2010.

NFLX chart

Shares of Netflix pulled back into oversold territory above the 200-day moving average last Friday. The stock closed higher for three out of the following four trading days.

Up more than 2% and back in overbought territory ahead of its Friday morning earnings announcement were shares of ^F^.

After closing lower for six out of the past seven trading days, shares of ^YHOO^ (below) by more than 4% on Thursday.

YHOO chart

Yahoo! which has been noted in 7 Stocks You Need to Know twice this week alone, closed in oversold territory for four out of the past six trading days before Thursday’s big bounce higher.

Soaring by more than 11% ahead of Friday’s open were shares of ^UA^. Thursday’s big gains represented the stock’s second consecutive higher close following a steep pullback during which UA closed lower for four out of five trading days.

With 16 backtested strategies for trading bull markets, bear markets and sideways markets, Short Term Trading Strategies That Work by Larry Connors and Cesar Alvarez may be the most important trading book you read this year. Click here to order your copy of Short Term Trading Strategies That Work today.

David Penn is Editor in Chief of TradingMarkets.com