TradingMarkets 7 Stocks You Need to Know for Thursday (GILD, YHOO, HOC, TWC, SPLS, BLK, AMGN)
A quick look at the exchange-traded fund markets before focusing in on individual equities shows an overall picture of a market that is only becoming more extremely overbought. The ^SPY^ has closed higher for five out of the past six trading days while the ^QQQQ^ has not hesitated for a moment, closing higher for each of the past six consecutive trading sessions.
Here are 7 Stocks You Need to Know.
Among the stocks that are becoming increasingly overbought below the 200-day moving average are a number of biotechnology stocks including ^AMGN^ and ^GILD^ (below).
Up six days in a row, shares of GILD have closed at their highest levels since mid-August. The same is true for Amgen Inc., which gained 1% in trading on Wednesday.
Technology stocks continue to be under a great deal of buying pressure – note both ^CSCO^ and ^INTC^ from yesterday’s 7 Stocks column. High probability traders can add to this list of overbought technology-related stocks shares of ^YHOO^.
Shares of Yahoo! bolted higher by well over 4% on Wednesday, closing at a new short term high. High probability traders, however, will note that this new short term high is taking place below the stock’s 200-day moving average.
There are precious few oversold stocks from the Nasdaq 100 trading above the 200-day moving average. Among the more interesting pullbacks above the 200-day, though, are the two-day drops in stocks like ^TWC^ and ^HOC^.
Shares of HOC are down more than 4% above the 200-day moving average, while shares of TWC have pulled back by well over 6% over the past two days. Although neither stock is technically oversold, they remain stocks to watch for high probability traders over the next few days.
Back to the overbought-below-the-200-day front, shares of ^SPLS^ (below) have closed higher for six straight trading days below that critical level. In fact, SPLS has not closed below its 5-day moving average since August.
There is another interesting stock that is moving up into overbought territory below the 200-day. Shares of ^BLK^ gained 3% on Wednesday and are up more than 9% over the past two days. Closing at its highest levels since late May, BLK is back in overbought territory after moving sideways and through neutral levels for the five days preceding Blackrock’s recent two-day advance.
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David Penn is Editor in Chief at TradingMarkets.com.