This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Extreme Stocks to Trade in This Volatile Market

Home Depot

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Exreme: Overbought; RSI at 70.63

Nearest Resistance: N/A

Nearest Support: $41

Almost the exact opposite pattern is taking place in shares of home improvement retailer Home Depot (HD - Get Report). This stock has consistently bested analyst expectations this year, rallying nearly 20% since the start of January. More impressive is the stock's rally from its August lows, a substantial move that's still being confirmed by a similar uptrend in RSI. As long as that RSI uptrend remains intact, traders are getting a "buy" signal on HD.

Eventually, that uptrend will come to an end, however. When it does, it's not a sell signal for shares. Momentum is a leading indicator of price, which means that it can act as an "early warning system" for a stock's price. That said, the exit signal on Home Depot only comes from price itself.

With this week's breakout above $41, I'd be looking for a pullback that retests our newfound support level as an even better buying opportunity.

I also featured Home Depot, one of Cramer's 7 Stocks for Your Buy List, in " 5 Rocket Stocks Poised for Gains."
3 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
EDMC $0.06 0.00%
CREE $25.82 0.00%
HD $121.33 0.00%
NRP $2.74 0.00%
PAA $33.59 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs