Selling in energy and basic materials, including mining, helped send a number of stocks lower ahead of trading on Thursday. Down well over 2% and closing lower for a second day in a row was ^X^, while ^HAL^ closed in oversold territory above the 200-day moving average on Wednesday.
Among those stocks pulling back for a third day in a row and moving closer to oversold territory above the 200-day moving average are a pair of Nasdaq 100 stocks: ^AMAT^ and ^BRCM^.
Here are 7 Stocks You Need to Know for Thursday.
^AMZN^ rallied by more than 1% on Wednesday to close in overbought territory above the 200-day moving average for a second session. Wednesday’s close also marked the stock’s seventh consecutive higher close.
Closing lower for the third session out of the past four on Wednesday were shares of ^FCX^ (below).
Shares of FCX pulled back by nearly 3% in Wednesday’s session, closing in oversold territory above the 200-day moving average for the first time since November 2010.
Also oversold above the 200-day are shares of ^DO^. DO has closed lower for two days in a row, and was down by well over 3% on Wednesday.
^WFC^ (below) pulled back by more than 2% in Wednesday’s session.
Along with lighter selling in other financials like ^KEY^, the selling in Wells Fargo could be the beginning of a broader profit-taking in the sector.
Among a number of companies reporting quarterly earnings Thursday are ^S^, scheduled before the market opens and ^KFT^ scheduled to report after the close.
Up more than 8% and closing higher for a fifth day in a row were shares of ^RL^ on Wednesday.
Note that all five consecutive higher closes in RL have been in overbought territory above the 200-day moving average.
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