Heading into trading on Thursday here are
5 Stocks for the Next 5 Days
. Note that
5 ETFs for the Next 5 Days
has been included in today's stock report below.
Dynegy Inc
(
DYN
)
Shares of DYN were up more than 1% on Wednesday. The stock has
been trading below its 200-day moving average since the first day
of August, fell to a low of 3.54 on August 19th and has been moving
higher in a race to the 200-day moving average ever since.
DYN has closed in overbought territory below the 200-day for
five consecutive traders, each close higher than the last and each
high higher than the last. Shares of DYN have PowerRatings of
1.
Liz Claiborne Inc
(
LIZ
)
Shares of LIZ opened on Wednesday with PowerRatings of 3, but
earned a one-point downgrade over the course of the trading day as
the stock gained below the 200-day moving average.
Wednesday's gain in the stock of more than 2% was enough to push
LIZ into overbought territory below the 200-day. Note that Liz
Clairborne has been trading below its 200-day on a consistent basis
since early August.
NVIDIA Corporation
(
NVDA
)
Rallying on the back of a strong earnings performance, NVIDIA
Corporation soared by more than 8% to finish trading on Wednesday
in overbought territory below the 200-day.
NVDA closed higher for a second day in a row, following a
three-day pullback.
Ingersoll-rand Ltd Cl A
(
IR
)
Also up after a short-term pullback were shares of
Ingersoll-Rand Ltd.
Ingersoll-rand Ltd Cl A
(
IR
) .
Ingersoll-Rand Ltd. gained well over 4%, finishing at a new
10-day closing high below the 200-day moving average. Shares of IR
have traded below the 200-day since mid-July.
Laboratory Corporation of America Holdings
(
LH
)
Also up more than 4% ahead of trading on Thursday, LH finished
at its highest closing level in more than a month. The stock, which
has been trading below its 200-day moving average, ended higher for
a second day in a row on Wednesday and is set to open on Thursday
just inside of overbought territory.
Shares of LH opened on Wednesday with neutral PowerRatings of 4,
but earned a one-point downgrade over the course of the trading
day.
The above 5 stocks have advanced toward levels from which they
have historically reversed and moved lower based on our research
into short term stock price behavior.
Click here to learn more
about our research into short term stock trading in the book by
Larry Connors and Cesar Alvarez,
Short Term Trading Strategies That Work
- now available for free both in paperback and as a digital
download (pdf).
There will be no
5 ETFs for the Next 5 Days
column this week. Note however that a number of major equity index
ETFs have rallied toward levels from which they too have
historically reversed and headed lower.
Examples of these exchange-traded funds include the
PowerShares QQQ
(
QQQ
) , the
SPDR S&P 500 ETF
(
SPY
) , and the
iShares Russell 2000 Index Fund
(
IWM
) . Additional strength in these funds will likely put them on the
radar of high probability traders looking for markets to sell
short.
Also of note are increasingly overbought international funds
trading below the 200-day moving average such as the
Market Vectors Russia ETF
(
RSX
) and the
iShares FTSE/Xinhua China 25 Index Fund
(
FXI
) .
David Penn is Editor in Chief of TradingMarkets.com