Kick ‘Em While They’re Up?
Remember when companies moved higher on good earnings? Now
earnings are nothing more than a chance to sell. What continues to amaze
me is that the companies that actually make money are taking just as bad of a
beating as the companies that trade at multiples of 800-times forward-projected
earnings.
Let’s take a look at several stocks which reported earnings last night.
As a sidebar, I’m keeping an eye on Nasdaq volume today. It’s already on tack to
do over two billion shares.Â
Today’s Tech Watchlist:
(
AMD |
Quote |
Chart |
News |
PowerRating),
(
BAX |
Quote |
Chart |
News |
PowerRating),
(
DGX |
Quote |
Chart |
News |
PowerRating)
Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating)
reported strong earnings on Wednesday night, in light of Intel’s warning. But for
the short-term trader, our concern is the technicals of the stock. These tell a
different story than the fundamentals. The stock broke down below support
and finally filled a gap from six months back. For the last four days it has been
in a low-level trading range The top of the range happens to be the former
support level.
So what stocks have not been getting trashed in this weak
market? Generic drugs makers. They continue to hold up and rally after any
pullback. Two names I want to look at are Baxter International and Quest
Diagnostics.
Baxter
(
BAX |
Quote |
Chart |
News |
PowerRating)Â is trading just under its all-time high
and looks poised to break out once again. It has traced out what looks like a
high-level cup pattern. Set your alerts for a breakout above the resistance
level that I’ve highlighted below. Of course, my readers know that I’m looking
for a new closing high followed by a continuation move on the following day.
Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating) has a very similar pattern. It is
not trading right at its all-time high, but it’s very close and resting just
under a resistance level. Look for both of these stocks to move in unison. Of
course, BAX is not nearly as volatile as DGX. Depending on your trading style,
you could take advantage of the move over resistance or wait until it clears the
all-time high. Only you can decide that.
Until later,Â