Monday June 2, 8:37 pm ET
Patrick Cain
The energy names in today's IBD Big Cap 20 -- which still make up 70% of the entire list -- are rebounding from earlier sell-offs.
But most of these energy stocks, even after their recent pullbacks, are extended beyond buy points.
Apache (NYSE:APA - News) is back to its 10-week moving average and finding support there.
This pullback is still risky, though, because it will be the stock's third since its last breakout from a base.
Only the first or second pullbacks should be considered possible buying opportunities when it comes to leading stocks.
Another thing to watch is that none of these top energy stocks have fallen more than 15%.
That means that if the market were to turn around in the next couple of weeks, some of those stocks may have formed flat bases and could be ready to break out.
During a correction, it's best not to buy any stocks. Instead, watch the ones making modest declines, preferably in quiet volume.
They may turn out to be the leaders of the next market uptrend.
Outside energy, Research In Motion (NasdaqGS:RIMM - News), the maker of the BlackBerry smart phones, is also testing its 10-week moving average.
The stock is just 5% below its previous high after finding support at the 10-week line.
First Solar (NasdaqGS:FSLR - News), a giant among green energy companies, dove below its 10-week moving average during the market's recent weakness.
Since then it's remained below that widely watched moving average. In that regard, First Solar is acting weaker than other big-cap leaders.
Credit card firm MasterCard (NYSE:MA - News) burst higher, but after it passed its new high, the advance stalled.
Since its surge on Thursday, the stock has declined in above-average volume. But trading also has been quieter than during its big move last Thursday.
