Take Advantage of Earnings Volatility
The majority of companies have been missing revenue estimates when reporting their third quarter results. As a result the number of stocks that are rolling into a negative weekly chart profile has been increasing. As stocks succumb to "QE fatigue" so do the stock's sector and the major equity averages.
On Oct. 29, while the stock market was closed because of the approach of Hurricane Sandy, I profiled eight stocks in This Week's Key Earnings Reports . Today I review how seven of these stocks performed versus their key levels. Only one of these stocks did not miss on the bottom line.
On Oct. 30, while the stock market was closed because of the wrath of super-storm Sandy, I wrote Trading Earnings Volatility , and today I provide updated profiles for six of these names.
Norfolk Southern (NSC) ($60.99): Set a new 2012 low at $60.71 on Monday. Consider buying weakness to the 200-week simple moving average at $59.78 with weekly and semiannual value levels at $58.78 and $58.29. My monthly risky level is $66.41.
Boeing (BA) ($70.41): Consider a buy-and-trade strategy on weakness to my monthly value level at $69.69.
Procter & Gamble (PG) ($68.67): The weekly chart profile shifts to negative on a close this week below the five-week modified moving average at $68.61. My quarterly pivot is $70.38.
Under Armour (UA) ($53.00): Remains above its 200-day SMA at $50.26 but below its five-week MMA at $54.65.
Amazon.com (AMZN) ($234.33): The influence from weekly and semiannual pivots at $233.53 and $236.23 should keep the stock in a tradable range between $223.00 and $238.70.
Apple (AAPL) ($584.62): Has been below its 200-day SMA at $592.91 for the past two days. In mid-June 2011 Apple spent just six days below this key moving average. This week's pivot has a high probability of being tested this week.
Pfizer (PFE) ($24.58 vs. $25.43 on Oct. 29): When the stock market reopened Oct. 31 this stock traded up to my quarterly risky level at $25.74, where profits should have been taken. The stock is now below its 50-day SMA at $24.79. The weekly chart profile is negative with the five-week MMA at $24.78. My semiannual value level is $20.51 with the quarterly pivot at $25.74.
Barrick Gold (ABX) ($35.08 vs. $39.18 on Oct. 29): Tested its 200-day SMA at $40.69 Wednesday for an opportunity to sell strength. I do not show a value level but my semiannual pivot is $37.60.