• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Tracking a Trio of Solid Stocks

These three fundamentally and technically sound names are still holding above key averages.
By KATE STALTER Jun 04, 2012 | 04:00 PM EDT
Stocks quotes in this article: NSM, LL., TCBI

Though I trade in and out of inverse ETFs to capture gains on the downside in a market like this, I continue to run screens of fundamentally and technically sound stocks to identify potential long ideas for when the market turns.

One stock that has been on my watch list for weeks -- and was not knocked off that perch in Friday's bloodbath -- is Lumber Liquidators (LL). The discount flooring retailer looks worse on a daily chart than on a weekly. It plunged 5.2% Friday in heavier volume than the prior session, but remained above its 50-day average, closing at $27.58.

For a little more context, I also checked a weekly chart. Lumber Liquidators is holding above its 10-week line, but significantly, it never undercut the low of the previous week, $27.37. It's encouraging that it is getting solid technical support; however, continued selling this week could, of course, erase that. Still, I will be monitoring this name for continued price reinforcement near its 10-week line.

A few regional banks have been among the best technical performers in the recent market downturn. Texas Capital Bank (TCBI), like Lumber Liquidators, is continuing to hold above its 50-day and 10-week lines. In fact, the small cap closed Friday just slightly below its 10-day and 20-day averages, which have been trending together since May 24, when the 20-day moved higher to meet the shorter line.

The stock ended Friday's session at $37.49, well within its month-long range between $39.31 and $36.04. In a market downturn, it can be difficult to peg a possible technical buy point. In a better market, if the stock crosses above its 10-day line - and as long as that shorter-term average remains above the 20-day - that could offer an entry point.

The stock hit resistance at $39.31 on April 30, $39.27 on May 11, and $39.30 on May 29 -- so clearly, the $39.30 vicinity would also be an area to watch as a possible buy point in a bull market.

For now, I'll just see whether this continues to maintain its support above the 10-week line. As I mentioned above, I am not planning any new buys at this juncture, other than inverse ETFs.

However, another stock that popped up onto my screens is Nationstar Mortgage (NSM), which provides residential loans to consumers. The stock went public in March at $14, amid little fanfare. It closed Friday at $18.97, a gain of 36% since its IPO.

The stock gapped up 9% on May 29, following a bounce off its 50-day line in the previous session. Despite the indices' decline last week, Nationstar finished with an advance of 7.3%.

In a good sign that professional investors are jumping into the stock, volume was above average on May 25, as it got 50-day support, and even heavier on May 28 as it gapped up.

As with the stocks named above, the technical support appears to bode well. Stocks outpacing the general market in a downturn are often well situated to notch additional price moves when a new uptrend emerges.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Stalter had no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity

More from Investing

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Treat Becton, Dickinson and Company With Care

Bruce Kamich
Jun 24, 2022 1:25 PM EDT

BDX gets an upgrade, but are the charts healthy enough to recommend?

When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends

Bob Ciura
Jun 24, 2022 1:00 PM EDT

Here's why in recessions and bear markets, the right mega-cap stocks can offer security -- and good yields.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login