The blue chip stocks of the S&P 500, on balance, continue to display characteristic end of month/end of year tendencies. Other markets, such as the market for the small cap stocks of the Russell 2000, have seen just enough selling for overbought conditions there to have moderated somewhat heading into the final trading days of 2010.
Among the big gainers on Wednesday were shares of ^SHLD^, up four days in a row below the 200-day moving average. The stock, which is overbought below the 200-day moving average, gained more than 6% in Wednesday’s trading alone.
Here are 7 Stocks You Need to Know for Thursday.
Shares of ^BJ^ soared by more than 7% in trading on Wednesday. The stock had been trending lower since mid-November and had closed lower for three out of the previous four trading days before Wednesday’s big bounce higher.
Shares of ^NFLX^ (below) have closed lower for four out of the past five trading days heading into trading on Thursday.
NFLX has not closed in oversold territory above the 200-day moving average since mid-November. Then, a four-day pullback helped short term traders anticipate a rally that took the stock higher by more than 25% over the next nine trading days.
Down for a second day in a row above the 200-day were shares of ^AIG^ ahead of Thursday’s open.
Pulling back above the 200-day moving average after closing higher for seven straight days were shares of ^MS^ (below) on Wednesday.
Shares of Morgan Stanley have struggled to keep ground above the 200-day moving average in recent months, having failed to do so in both the first half of November and the first half of December.
Bounding higher ahead of Thursday’s trading and increasingly overbought above the 200-day moving average were shares of ^CNX^.
^NKE^ (below) pulled back by more than 1% ahead of trading on Thursday.
The lower close in Nike marked the stock’s fourth lower close out of the past five trading days. NKE has not closed in oversold territory above the 200-day moving average in more than a month.
Up for a third day in a row and continuing to gain ground above the 200-day moving average were shares of ^EDMC^. The stock gained more than 3% in trading on Wednesday.
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David Penn is Editor in Chief of TradingMarkets.com