October 4, 2010
Traders likely will face growing oversold conditions in a wide variety of stocks – from tech to consumer staples – when the stock market opens on Tuesday. The SPDR S&P 500 ETF (SPY | PowerRating) closed in oversold territory, while the PowerShares QQQ (QQQQ | PowerRating) pulled back for a fifth consecutive trading day. Both the sPY and the QQQQ continue to trade above their 200-day moving averages.
Overbought oils mentioned recently in 7 Stocks You Need to Know began to retreat in earnest from short term highs below the 200-day. These include Baker Hughes Inc (BHI | PowerRating) and Williams Companies Inc (WMB | PowerRating) among others.
Here are 7 Stocks You Need to Know for Tuesday.
Bouncing more than 1% after a one-day dip into oversold territory above the 200-day on Monday were shares of Amazon.Com Inc (AMZN | PowerRating).
Shares of Caterpillar Inc (CAT | PowerRating) pulled back by more than 1% on Monday, closing lower for a third straight trading day.
The selling in CAT brings the stock down into oversold territory and likely on to the radar of traders looking for pullbacks in otherwise rising markets. Caterpillar earlier this week traded at year to date highs.
Traditional “safety stocks” like Bristol-Myers Squibb Co (BMY | PowerRating) and Pfizer Inc (PFE | PowerRating) were among those losing more than 2% and 1% respectively on Monday and diping into oversold territory above the 200-day moving average.
Down five out of the past six trading days and becoming increasingly oversold is Apple Inc (AAPL | PowerRating).
Shares of Apple Inc. are trading at short-term low as of Monday’s close. The stock is as oversold as it has been since early July when a similar short term oversold extreme anticipated a two-day rally in AAPL of more than 4%.
Also closing lower for five out of the past six trading days were shares of Emc Corp (EMC | PowerRating). The stock is trading at its lowest closing level in nearly a month.
United Parcel Service B (UPS | PowerRating) remained under the control of strong selling on Monday, as the stock closed down for a third consecutive trading session.
The move lower in UPS takes the stock below a trading range that extends back to the beginning of September. UPS is among the more oversold stocks in the S&P 100 trading above its 200-day moving average.
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- TradingMarkets 7 Stocks You Need to Know for Monday (C, BIDU, AMZN, EXPE, HPQ, NFLX, AAPL)
- Short Term Trading Strategies That Work: 7 Stocks You Need to Know (AXP, COP, DIS, F, IBM, NKE, UPS)
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- Short Term Trading Strategies That Work: 7 Stocks You Need to Know (MRVL, DTV, SYMC, VOD, WCRX, NVDA, GOOG)
- TradingMarkets 7 Stocks You Need to Know for Monday (ORCL, GOOG, RIMM, MA, SBUX, CVX, LEN)