Financial stocks that were the main beneficiaries of the oversold bounce leading into Friday’s trading were also a significant source of selling on Friday, as stocks like ^C^ and ^MS^ pulled back by more than 3%. The selling takes both the S&P 500 and the Dow industrials to the edge of oversold territory above the 200-day moving average.
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Profit-taking from the recent two-day rally has helped pull U.S. stocks back into neutral territory. Should selling continue and stocks move lower early next week, traders could begin scaling in to oversold markets as early as Monday or Tuesday.
Here are 7 Stocks You Need to Know for Monday.
Up more 3% after pulling back for five straight sessions were shares of ^NFLX^ (below) on Friday. NFLX’s last four closes were in oversold territory above the 200-day moving average.
In addition to Citigroup noted above, shares of ^BAC^ were lower heading into trading on Monday.
Down 1% on Friday, BAC has closed lower for three out of the past four trading days.
Among the few stocks reporting quarterly earnings on Monday is ^URBN^. Shares of URBN rallied off their lowest levels of the session to close in neutral territory as of Friday’s close.
Closing below its 200-day moving average on Friday for the first time since December 2010 were shares of ^MSFT^. The stock has closed down for three out of the past four trading days, including pulling back by nearly 1% ahead of trading on Monday.
^GRMN^ (below) closed higher for a third day in a row on Friday.
Up well over 1%, shares of Garmin have closed back in overbought territory above the 200-day moving average.
Buyers were bidding shares of oil drilling companies higher going into the weekend. Among the biggest gainers of the day were shares of ^BRNC^, which soared by well over 7% to close higher for a third day in a row.
Shares of ^AAPL^ (below) rallied off their lowest levels of the Friday session to close higher for a third day in a row and overbought above the 200-day moving average.
Shares of Apple have been trading lower in recent days, falling for three days in a row prior to the most recent, short-term oversold bounce.
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David Penn is Editor in Chief of TradingMarkets.com