You may not be able to blame the semiconductors for the weakness
in technology. But you can certainly blame the Nasdaq for the
overall weakness in the markets on Monday.
While the Dow dropped by less than 1% and the S&P 500 traded
lower by just over 1%, it was the Nasdaq that saw the most
significant selling of the three, losing one and a quarter percent
to start the trading week.
The lower finish in the Nasdaq takes the index down to its
lowest levels of December. And the leading tracking ETF for the
) , which tracks the Nasdaq 100, closed in
territory for a fifth day in a row.
Which stocks are leading the Nasdaq lower on Monday? Some of the
indexes bigger decliners on the first trading day of the week were
lesser lights like
China Medical Technologies Inc
Career Education Corp
) , both of which dropped by well over 8%. But there are some
Nasdaq stocks that are not only pulling back but doing so above the
200-day moving average that traders might want to keep an eye on
over the next few days.
More interestingly, all three of the stocks in today's report
are name-brand stocks, many of which are just off major, long-term
For example, shares of
F5 Networks Inc
) rallied to their highest level since July at the beginning of
December. But selling in the stock in recent days has taken shares
lower by more than 11%. Heading into trading on Tuesday, shares of
FFIV have dropped for five out of the past six trading days and are
now oversold above the
200-day moving average
Trading at new, 52-week highs as recently as last week,
Ross Stores Inc
) is experiencing a dose of profit-taking after rallying to new
highs intraday on Monday.
ROST closed down by well over 1% in Monday's trading, but is
still above the lows of its most recent trading range, a range that
extends back to the beginning of the month.
Both FFIV and ROST have short-term, positive edges of less than
1%. Additional selling and deeper
in these stocks over the balance of the week will likely increase
One stock where the positive edges are significantly greater is
) . Shares of SNDK pulled back by more than 2% on Monday, finishing
lower for six days in a row ahead of Tuesday's open. As such, the
stock, which closed in oversold territory on Monday, has a
positive, short-term edge that is well above 1%.
All of the stocks in today's report were available from
research and data available through the Machine. To learn more,
is Editor in Chief of TradingMarkets.com