TradingMarkets 7 Stocks You Need to Know for Monday: SBUX, HPQ, ORCL, X, AXP, XOM, BHI
Friday’s sharp pullback was a reminder to traders that in the short-term, extreme overbought conditions are not sustainable and often lead to significant pullbacks and sell-offs. Leading the S&P 500 lower ahead of trading on Monday were stocks like ^F^, down more than 13%, and ^AMZN^, off more than 7%.
*Special Note: Does “smooth and consistent” describe your trading and investing in 2010? Click here now to learn why Larry Connors and the TradingMarkets Spring 2011 Swing Trading College may be just what you are looking for to make 2011 your best trading year yet.
Here are 7 Stocks You Need to Know for Monday.
Down three days in a row and more than 3% on Friday alone were shares of ^SBUX^. The sell-off puts SBUX in oversold territory above the 200-day and at the lower end of a trading range that extends back to early December.
Shares of ^HPQ^ (below) pulled back by more than 2% on Friday, closing lower for a fourth session in a row.
Friday’s pullback puts HPQ in oversold territory for the first time since the stock rallied above its 200-day moving average in the first half of January.
^ORCL^ pulled back well over 2% on Friday, closing at its lowest level in more than a week.
Pulling back by more than 4% and closing lower for a second consecutive trading day were shares of ^X^ (below)
U.S. Steel was last in oversold territory in the first half of the month, rallying into strength above the 5-day moving average less than 10 days later.
^AXP^ has closed lower for four out of the past five trading days heading into Monday’s open.
AXP is in oversold territory above the 200-day moving average for the first time since late December.
Amid the widespread selling on Friday, shares of ^XOM^ pulled back just over 1% ahead of its scheduled earnings announcement on Monday.
^BHI^ climbed deeper into overbought territory above the 200-day on Friday, closing higher for a fourth day in a row.
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