With stocks finishing the first quarter in bullish style in the
S&P 500 and Dow industrials, the Nasdaq actually edged lower.
This is interesting insofar as the Nasdaq had been the stronger of
the three major averages over the past several weeks. And weakness
here could anticipate broader profit-taking once the second quarter
begins Monday morning.
Pulling back for a fourth day in a row on Friday, shares of
) continued to retreat from their recent rally to multi-month
highs. The stock is short-term oversold for the first time since
climbing back into bull market territory in mid-February, and has
earned a short-term edge of just over 1%. Staples
rating of 7 out of 10
puts the stock at the upper end of our neutral range.
Just a few weeks ago, profit-taking in the wake of new, 6-month
) took the stock lower for three days in a row and into short-term
oversold territory. Shares of SIAL climbed higher for the following
three days, gaining over 3% and finishing at new, two-week
Traders will be looking to see whether the stock, which has
again pulled back for three sessions in a row, will make a similar
snapback rally over the next few days or if more selling is
required to create the kind of
that historically drawn buyers off the sidelines.
And with a modest edge of a third of a percent and neutral
ratings, it is likely that shares of SIAL will need more than
Friday's breakeven trade before becoming truly an attractive target
for short-term traders.
Down four in a row and trading inside technically oversold
territory are shares of
). The stock edged back above its 200-day moving average a few
weeks ago, and is making its first significant pullback since then.
Shares of Yahoo have earned a neutral rating ahead of trading on
Monday, and have a positive edge in the short-term of just under a
third of a percent.
If SIAL does not resume its pullback, then a stock like
) that is already short-term oversold may be more worth paying
attention to. Shares of PAYX, which have been trading in bull
market territory since the beginning of the year, have closed lower
for four days in a row heading into Monday's session. This selling
has earned PAYX a short-term
of more than 1%, and 6 out of 10 ratings.
The updated, second edition of How Markets Really Work: A
Quantitative Guide to Stock Market Behavior by Larry Connors and
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to learn more about what's in the new edition and how to get your
is Editor in chief of TradingMarkets.com