U.S. stocks traded lower in Friday’s session, but with another higher close relative to Thursday, overbought conditions continue to define the stock market. From a sector perspective, buyers were more aggressive in financials than in technology, and profit-taking in energies continued for an additional day with both ^HAL^ and ^BHI^ down more than 1%.
Here are 7 Stocks You Need to Know for Monday.
The top two, best performing stocks on Friday? The ^NYX^ gained more than 12% heading into the weekend while ^NDAQ^ added more than 9%.
Unsurprisingly, both stocks are now extremely overbought above their respective 200-day moving averages.
Breaking out above a short term trading range to close at new highs for the year were shares of ^WYNN^ (below).
WYNN closed higher by more than 4% on Friday to end the week in overbought territory. Shares of WYNN were last in overbought territory just a week ago, before pulling back to settle into the short term range mentioned above.
A number of stocks that had pulled back into oversold territory after closing lower for multiple consecutive trading days closed lower again on the final trading day of the week. These included stocks like ^JBL^ (below) which pulled back by more than 2%.
Shares of JBL have closed lower for four consecutive trading days, the last two in oversold territory above the 200-day moving average.
A three-day rally below the 200-day and a close in overbought territory were enough to bring out the sellers in the market for shares of ^FFIV^. The stock fell by well over 8% in Friday’s session.
closing lower for a third day in a row ahead of Monday’s trading are shares of ^AAPL^.
The pullback of just over 1% in Apple puts the stock in oversold territory for the first time since mid-March, when a sharp, two-day sell-off set the stock up for a run from $330 to more than $350 in seven days.
Up four days in a row and increasingly overbought above the 200-day moving average ahead of trading on Monday are shares of ^ADBE^. ADBE closed up by 3%.
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.