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April 15, 2008
The stocks in today's report:
The stocks included in this report
were selected based on unique circumstances including
recent news, breakouts, earnings or correlated Market analysis.
The summary analysis below were derived from real time
trading reports provided by Stock Traders Daily.
International Business Machines (IBM)
IBM reports earnings this week, and ahead of the numbers
Wall Street is anxious. Could IBM be the next Dow
Component to miss earnings? This fear is weighing
on the Market, and emotions are running high ahead of
Wednesday's numbers. Our analysis is objective and
unbiased, and it tells us that IBM, regardless of the
report, is close to a level of
longer term resistance. If nothing
more, that seems to limit the upside potential from the
stock at this time. Unless IBM manages to break
above longer term resistance, the stock is likely to
decline back to longer term support levels again; a
meaningful decline. We have illustrated both of
these important inflection points for you in our report.
At first glance slightly higher levels may still lie
ahead, but the upside is minimal compared to the
downside risk if longer term resistance remains in tact.
We have identified this as longer term parameter #3 in
our real time trading report for IBM. Review it
here:
IBM Report
Intel (INTC) What should
you do with INTC ahead of earnings? Our objective
analysis tells us that INTC has developed an upward
sloping mid term channel. Longer term trends seem
less relevant to INTC at this time, and a higher
frequency channel encompasses the stock instead.
Currently INTC appears to be in the process of
oscillating lower within this
upward sloping channel, and therefore tests
of mid term support levels should be expected. We
have identified mid term support as mid term parameter
#1 in our real time trading report. Our analysis
tells us to expect a test of that support level, and
then a reversal higher and a test of mid term
resistance, which is indentified as mid term parameter
#3 in the report. Find details here:
INTC Report
Google (GOOG) Does GOOG
have a better model than Comstock and the other
advertising analysts suggest? We'll find out this
week. Wall Street expects GOOG to disappoint, and
that could be considered a positive sign for traders.
When Wall Street expects the worst, the downside risk is
limited, usually. That's fine, on the surface, but
betting on that alone is an error. Instead, if you
were to place a trade on this assumption, you should
have something else to support your theory, and nothing
of the sort surfaces in our objective analysis yet.
In fact, GOOG has held mid term resistance perfectly,
and the stock appears to be in
the process of declining to longer term
support levels at the same time. Combined, this
points to lower levels. However, mid term
resistance should be the catalyst for trading decisions;
we have identified this as mid term parameter #3 in our
real time report. If it holds we should expect a
decline to longer term support (longer term parameter
#1). However, if mid term resistance breaks higher
we should expect an increase to longer term
intra-channel resistance (longer term parameter #2)
instead. Sustained increases are unlikely unless
that parameter breaks higher too. For now, because
mid term resistance has held, declines towards longer
term support seem more likely. Unless resistance
breaks before earnings, betting on a dead cat bounce is
very risky. Here are the details:
GOOG Report
JP Morgan Chase (JPM) Yeah,
JPM stole BSC, but now what? Will JPM be able to
show us the money this quarter, and will that paint a
darker picture over the financial industry once again?
JPM has tons of support at this time. However, the
stock has also tested a level of resistance recently,
and that presents a problem. The stock has also
already begun to decline from support, and
that is a bearish signal
too. Regardless of earnings, this downward
oscillation has begun, and the scenario is clear,
according to our longer term parameters: our objective
analysis is telling us to expect the stock to decline to
test longer term support again. We have defined
this as longer term parameter #1 in our real time
trading report for JPM. Review longer term
resistance first when you read our report so you
understand the perfect test of resistance that recently
occurred, and then review longer term parameter #1, our
downside target:
JPM Report
Good Trading
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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