10 Updates

Market Punishes Earnings Misses

Apr 25 2014, 12:59pm CDT | by

It was one of those somewhat-rare days that the Dow Industrials closed unchanged for the day. The Dow Transportation Average was down 0.42% while the Nasdaq 100 gained just under 1% for the day....

Filed under: news

 
 
 

13 weeks ago

Market Punishes Earnings Misses

Apr 25 2014, 12:59pm CDT | by

It was one of those somewhat-rare days that the Dow Industrials closed unchanged for the day. The Dow Transportation Average was down 0.42% while the Nasdaq 100 gained just under 1% for the day. This, of course, was due in part to the 8% gain in Apple, Inc. (AAPL), but surprisingly the A/D ratios on the Nasdaq Composite were negative on the close.

For the NYSE Composite, the A/D ratios were flat and this has caused the McClellan oscillator to decline to +63 from + 116 last Tuesday. This could set the stage for a short-term pullback, though it is clearly an earnings-driven market and many eyes are on Amazon.com Inc. (AMZN), Starbucks Corp. (SBUX), and Microsoft Corp. (MSFT), which all beat their earnings estimates after the close. The new highs in the A/D line continue to favor an eventual upside move to stronger resistance.

Though beating estimates does not always guarantee higher stock prices, the market has not been very kind to those that report weaker-than-expected earnings. Even some stocks that beat analyst estimates have dropped sharply but does the current weakness present a buying opportunity in any of these three stocks?

Click to Enlarge

Chart Analysis: The beaten-down PowerShares QQQ Trust (QQQ), which tracks the Nasdaq 100, had nice gains as the highs from April 10 were finally overcome.

  • The QQQ is now back above the quarterly pivot at $87.34.
  • The daily downtrend, line a, is a bit higher at $89.06 with the weekly starc+ band at $91.48.
  • The relative performance broke its uptrend, line b, in March signaling that it had lost its leadership role.
  • The daily RS line is now trying to bottom as it has moved slightly above its WMA.
  • The weekly relative performance (not shown) has turned up but is well below its WMA.
  • The daily OBV also violated important support, line e, in March.
  • The OBV has rallied back above its WMA and is now testing this resistance.
  • More importantly, the weekly OBV (not shown) looks ready to move back above its WMA, which would trigger an AOT buy signal.
  • There is short-term support now in the $87 area with the monthly projected pivot support at $85.66.

Core Laboratories (CLB) missed both on earnings and revenues, Thursday, as it closed down over 9% on the day.

  • The weekly chart shows a large reversal from the April 17 high at $220.48.
  • The 20-week EMA at $192.11 is now being tested as is the quarterly pivot at $191.98.
  • The breakout level (line f) and former support has been slightly violated.
  • The weekly uptrend, line g, is now at $186.58 with the weekly starc- band at $180.48.
  • The weekly relative performance has reversed sharply from its new high. It may close below its WMA and the support (line h) this week.
  • The weekly OBV has been in a tight range and is now testing its WMA as the volume was four times the average on Thursday.
  • The weekly OBV has more important support at line I, and the daily has reversed sharply.
  • The monthly projected pivot support at $185.73 is the next potential downside target.

Click to Enlarge

Under Armour, Inc. (UA) reported a 50% jump in earnings and revenues rose 36%. The stock closed down 7.4% on the day but at one point was down over 10%.

  • UA peaked at $62.40 in March and formed a weekly doji (see arrow).
  • A weekly LCD sell signal was triggered the following week when it closed at $57.61.
  • At Thursday’s low, it was down 15% after the sell signal.
  • The weekly chart has next support, line a, in the $47.30 area.
  • Further support is just a bit lower with the starc- band and weekly uptrend, line b, in the $46-$46.70 area.
  • The weekly relative performance did confirm the recent highs but has been below its WMA for the past four weeks.
  • The weekly OBV will close the week below its WMA but is still well above the trend line support at line d.
  • The quarterly pivot is now at $53.57 with stronger resistance in the $56 area.

Titan International Inc. (TWI) reported that its sales dropped 7% in the 1st quarter and gross profits fell 43.6%. The stock was down 8.5% on Thursday.

  • The weekly chart shows that the rally in early 2014 just tested the long-term downtrend, line e.
  • The stock’s rally has stalled three times in the $19.50-$19.88 area.
  • This week’s close looks as though it will be the lowest since early February.
  • The weekly starc- band is at $15.20 with the major weekly support, line f, in the $14 area.
  • The relative performance has been in a long-term downtrend since 2012.
  • The RS line has recently broken support, line h, and is below its WMA.
  • The OBV moved back above its WMA late last year but has been able to rally back to longer-term resistance at line i.
  • The daily OBV (not shown) broke its support in March when the stock was trading near $18.50.
  • There is first resistance at $17.25 with the quarterly pivot at $18.24.

What It Means: Both Core Laboratories (CLB) and Under Armour, Inc. (UA) have positive long-term charts suggesting that the current decline could set up a good buying opportunity. The weekly reversals do make it likely that we could see several weeks before they are ready to turn higher.

On the other hand, Titan International Inc. (TWI) looks negative from both a weekly and daily perspective and should be avoided.

How to Profit: For the PowerShares QQQ Trust (QQQ), go 50% long at $86.88 or better and 50% long at $84.72, with a stop at $82.37 (risk of approx. 3.9%).

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robb ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat today ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ i ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in c ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 2014 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) toda ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

OPEC daily basket price closes tad higher
Vienna, July 30 (IANS) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) stood at $105.44 a barrel Tuesday, against $105.22 last Thursday, according to the OPEC Secretariat.
 
 
Moscow calls US sanctions 'illegitimate'
Moscow, July 30 (IANS) The economic sanctions imposed by the United States are a revenge on Russia, the country's foreign ministry said Wednesday.
 
 
EU boosts funding to fight Ebola epidemic
Brussels, July 30 (IANS) The European Union Wednesday allocated an additional 2 million euros ($2.68 million) in aid to tackle the Ebola epidemic in West Africa.
 
 
Top doctor in Sierra Leone dies of Ebola
Nairobi, July 30 (IANS/EFE) Sierra Leone's top Ebola virus doctor, Sheikh Umar Khan, died a few days after contracting the lethal disease which has claimed the lives of 672 people in Western Africa, health authorities in Sierra Leone announced Wednesday.
 
 
 

Latest from the Network

Drew Barrymore pays tribute to late half-sister
Drew Barrymore has paid tribute to her estranged older half-sister, who was found dead on Tuesday (07.29.14). The 39-year-old actress offered her sympathies to her extended family after Jessica Barrymore, whom she only...
Read more on Celebrity Balla
 
G7 warns Russia faces more sanctions
London, July 31 (IANS) The G7 leaders in a joint statement Wednesday said Russia will face further economic sanctions if it continued to support rebels in Ukraine. The warning came after the EU added eight more...
Read more on Politics Balla
 
Kim Kardashian slams Rob's ex-girlfriend
London, July 31 (IANS) Reality TV star Kim Kardashian has hit out at brother Rob Kardashian's ex-girlfriend Adrienne Bailon for bad mouthing her sibling. Talking to a Latina magazine, the actress-and-singer, who dated...
Read more on Celebrity Balla
 
Kohli's significant dinner date with Vaughan (Analysis)
Southampton, July 31 (IANS/RAY) Tuesday night, India batsman and vice-captain Virat Kohli had dinner with Michael Vaughan, former England captain, at a Brazilian restaurant in Southampton. This was revealed by the...
Read more on Sport Balla
 
Few Americans believe US winning fight against terror: Poll
Washington, July 31 (IANS) Belief that the US is winning the fight against terrorism has dropped to its lowest level in more than a decade of regular tracking, a poll has found. A new Rasmussen Reports national...
Read more on Politics Balla
 
Simon Cowell will be a great dad: Ex-girlfriend
Los Angeles, July 31 (IANS) Former Playboy model Carmen Electra says that her ex-boyfriend, Simon Cowell, will be a great father to his son Eric. The 54-year-old music mogul and his girlfriend, Lauren Silverman,...
Read more on Celebrity Balla
 
Reach out to others as friends: UN chief
United Nations, July 31 (IANS) UN Secretary-General Ban Ki- moon has called upon all to reach out to one another as friends and build long-term foundations for lasting peace in the time of mistrust and violence....
Read more on Politics Balla
 
When Rita Ora forgot her lines
Los Angeles, July 31 (IANS) Singer Rita Ora found acting "difficult" as she kept forgetting her lines while filming her scenes for the upcoming erotica "Fifty Shades of Grey". The 23-year-old singer, who is playing...
Read more on Celebrity Balla
 
Christina Aguilera enjoys whimsical baby shower
Christina Aguilera ''felt so much love'' at her baby shower last weekend. The 33-year-old singer, who is expecting a baby girl with her fiancé, Matthew Rutler, celebrated the impending arrival of her second child with...
Read more on Celebrity Balla
 
Kelsey Grammer forgives sister's killer
Kelsey Grammer testified at a parole hearing for his sister's murderer on Tuesday (07.29.14). The 59-year-old actor, whose wife Katya gave birth to their second child last week, forgave Freddie Glenn for kidnapping and...
Read more on Celebrity Balla