Sifting Through the Post-crash Wreckage


The stock market is in the midst of its steepest drop in over a year. Some observers blame the selloff on complacency after a big run, while continuing to cite healthy fundamentals. Is it smart to buy the pullback? Every investor needs to make that decision for themselves, but recent headlines may offer some ideas in case you’re looking.

The good news is that many companies just reported earnings, so there’s a lot of information out there. So today we simply wanted to review stocks that rallied on the heels of strong quarterly reports, and then retreated with the broader market. Here are some names that popped up.

Aerospace giant Boeing (BA) is the second-best performer in the S&P 500 index over the last year. It rallied after maintaining a stream of blowout results and strong orders back on January 31. Still, the shares are below their price that session.

Abbvie (ABBV) also shot to a new high last month on the heels of better-than-expected earnings, sales and guidance. Yesterday it probed below its 50-day moving average for the first time since the summer before snapping higher. This fast-moving pharma is the second-best performer in the S&P 500 over the past six months.

EBay (EBAY): Long forsaken by technology investors, the online auction company has been increasingly viewed as a turnaround name. EBAY blasted to new highs after quarterly numbers confirmed those hopes, but surrendered most of those gains in the recent volatility spike.

Xerox (XRX) has been even more of a dinosaur in the tech space, having gone nowhere all century. But it’s been doing some deals, getting attention from activist Carl Icahn, beating profit forecasts. Chart watchers may also notice XRX just had a “golden cross,” with its 50-day moving average rising through its 200-day moving average.

FedEx (FDX) reported strong results back in December and continued to surge in January. Now it’s back near its 50-day moving average — another popular indicator among trend followers.

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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.