An image of a person going over a financial report
Stocks

5 Stocks for the Next 5 Days: LULU, AAPL and CMG Pullback

When looking for stocks to buy for a short term trade, our research continues to assert that the biggest edges are in buying stocks after they have pulled back above the 200-day moving average.

Last week's column highlighted a number of stocks that recently had made short-term gains and could be due for a pullback. This week, we'll take a look at some of these stocks.

Lululemon Athletica Inc. (LULU | PowerRating ) was down by as much as 8% on Thursday, and looks likely to close both down three in a row and in oversold territory above the 200-day. The stock also earned a one-point PowerRatings upgrade during Thursday's session.

Also pulling back for a third day in a row on Thursday were shares of Chipotle Mexican Grill (CMG | PowerRating ) . CMG sold off by 8% to finish the session oversold. The stock also earned a one-point PowerRatings upgrade intraday.

Apple Inc (AAPL | PowerRating ) is the third stock from last week's column to pullback for a third day in a row as of Thursday's close. Down well over 3% on the day, AAPL is back in oversold territory above the 200-day moving average for the first time in more than a week. Like LULU and CMG above, Apple shares earned a one-point PowerRatings upgrade in Thursday's trading.

What other stocks are selling off above the 200-day moving average - and are there opportunities for swing traders looking for stocks to sell short?

One stock traders may want to keep an eye on is Temple-Inland Temple Inland Inc (TIN | PowerRating ) . The stock was down by nearly 7% intraday on Thursday to finish lower for a third consecutive trading day. Shares of TIN also earned the biggest PowerRatings upgrade intraday on Thursday, picking up a three-point PowerRatings upgrade by noon.

Writing this during the market's big sell-off on Thursday, the number of stocks that have become overbought below the 200-day is understandably slight. There are however a large number of examples of stocks that had become very overbought in the days leading up to Thursday's session, including stocks with significant PowerRatings downgrades, and many of those stocks are likely paying off for the swing traders who are trading them.

As just one example, shares of Staples Inc (SPLS | PowerRating ) had been trading below their 200-day moving average since May. The stock rallied into overbought territory below the 200-day on Tuesday, the 16th, earning a one-point PowerRatings downgrade. Two days later, on Thursday, SPLS traded lower by nearly 5%.

David Penn is Editor in Chief of TradingMarkets.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CMG LULU AAPL

Latest Stocks Videos

    #TradeTalks: Is it time for value stocks to shine on the other side of the election?

    Is it time for value stocks to shine on the other side of the election? Barrow Hanley Portfolio Manager Mark Giambrone joins Jill Malandrino on Nasdaq #TradeTalks to discuss.

    Oct 19, 2020