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July 14, 2008
The stocks in today's report:
Genentech (DNA) In the face
of extreme bearishness and pessimism shares of Genentech
have been performing exceptionally well. Many
would argue that biotech does well in the face of bear
markets. Whatever the debate, shareholders of
Genentech are pleased with the recent performance.
However, with earnings coming after the close on Monday
investors have something new to worry about.
Analysts are balking at the growth rate expected to be
announced by Genentech in conjunction with this report,
and perception has suddenly shifted from a bear market
bull (DNA) to an expensive biotech play. We are
not fundamental analysts at Stock Traders Daily, but we
are trading analysts, and our trading signals are quite
clear. Our trading analysis tells us that DNA is
poised to continue to increase until such time as it
tests longer-term resistance again, but that depends on
one important catalyst: DNA
must remain above converted support.
For all of our members and trial members we have
identified converted support as longer-term parameter #2
in our real time trading report for Genentech. The
stock has already made headway beyond this former level
of resistance and is currently poised to continue to
increase until such time as longer-term parameter #3 is
tested as well, and that represents longer-term
resistance according to our model. Again, in order
for that to happen it must first hold longer-term
converted support, and the analyst comments prior to
earnings have made that even more significant.
Earnings after the close on Monday could be the catalyst
to either further increases or another test of converted
support and investors needs to be ready to react.
Our report will provide the guide you are looking for.
Novelus (NVLS) Shares of
Novellus have been under extreme pressure. The
question on the minds of traders and investors however
concerns the negative perception that is already built
into the stock. Has the
worst already been priced in? Even if
Novellus reports earnings at the low end of street
consensus will the stock continue to slide? The
debate is on, especially with earnings coming after the
bell on Monday. Short interest in shares of NVLS
seem rather high, especially when overall market
conditions are considered, so if the company manages to
squeak out a positive report the potential turnaround
could be significant. That leaves anyone
interested in Novellus with plenty of if, and, or
buts.... With that understood let's get more
specific. According to our trading analysis shares
of NVLS will continue to decline unless the stock
reverses higher and breaks above established resistance
levels. Unless the stock manages to turn higher
continued declines lie ahead. Don't fight the
trend, the trend is your friend. We have
identified resistance as a longer-term parameter #2 in
our real-time trading report. This report is
available to all of our members and trial members.
If the stock remains below longer-term parameter #2
continued declines are likely. In fact the stock
will continue to decline until such time as it breaks
above this parameter. If the down trend continues
this level of resistance will tick lower as the stock
declines as well. It is designed to ride the stock
down and continually offer you a reversal signal so you
are ready when the stock begins to reverse. If you
are looking for a reversal trigger, or even a short
signal, longer-term parameter #2 may be the inflection
point you were looking for.
Johnson & Johnson (JNJ)
Aside from being a safe haven in the face of an
otherwise down market, aggressive traders are wondering
what all the hype is about Johnson & Johnson.
Volatility levels are relatively low, but that might
change with earnings. Although the stock has been
performing well in the face of this down market, traders
do not seem overly enthusiastic about earnings.
However, there has been a positive catalyst in terms of
trading signals, and our professional trading report
describes that in detail.
JNJ has recently broken above an
important level of resistance and that
resistance level has now been converted into a level of
support. We havedefined this as longer-term
parameter #2 in our real-time trading accord for Johnson
& Johnson. The recent break above this inflection
parameter positioned the stock to continue to move
higher towards longer-term resistance levels.
Longer-term resistance, as defined in this same report,
is longer-term parameter #3. In essence, if the
stock remains above longer-term parameter #2 it will
continue to move higher and test longer-term parameter
#3. However, the stock must remain above this
converted support level in order for this positive
trading signal to persist, otherwise it will pull back
according to our analysis. We have made to this
report available to all of our members and trial members
so that they understand the potential that lies in
shares of JNJ at this time.
Intel (INTC) Is it time to
buy semiconductor stocks again? Traders will find
out soon because Intel is poised to report earnings.
Although earnings will be important on a fundamental
basis, our trading analysis is
much more important to the decision-making
process of active traders and potential investors.
Unless you plan on getting married to shares of Intel,
the trading strategies that we offer in our real-time
trading report are much more important than the net
results of this upcoming earnings announcement.
The most important take away is, INTC has recently
tested longer-term resistance and it is in the process
of declining towards longer-term support. The
stock is not anywhere near longer-term support levels at
this time, so significant declines could lie ahead.
However, the stock is near another important catalyst.
Shares of Intel are bordering an intra-channel level of
inflection. It shares of Intel break below this
level of inflection continued declines will exist and a
test of longer-term support levels will occur (bearish).
This represents a significant percentage from current
levels. However, if the stock holds this important
inflection parameter instead (bullish) a reversal will
take place and shares of Intel will increase towards
longer-term resistance levels again instead. This
also would represent a significant percentage move from
current levels. The catalyst is quite clear, and
we have defined it for all of our members and trial
members in our real-time trading report. We have
defined the catalyst as longer-term parameter #2.
Currently shares of Intel are slightly below this
inflection parameter, so the current bias is down
(bearish). However, if the stock manages to
reverse back above this inflection parameter that bias
will change. If longer-term parameter #2 remains
in tact as current resistance expect the stock to
decline all the way to longer-term parameter #1.
However, if INTC manages to reverse back above
longer-term parameter #2 again, a reversal towards
longer-term parameter #3 is likely to take place
according to our trading report.
Good Trading
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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