July 17, 2008
The upcoming earnings
announcements from GOOG and IBM will be the most
important earnings announcements during this quarterly
earnings season in my opinion. The Market is
trying to recover from a bottoming process, and if these
reports are good enough (they don't have to be great)
the Market will respond positively, and confirm the
bottom that seems to be forming. Although IBM is
much more important than GOOG in the broader scope of
the economy, each will play an integral role in this
confirmation process, and each should be reviewed
closely based on direction and trend analysis.
Although I do have specific
opinions about the results of these upcoming earnings
reports, the references in this article are exclusive to
technical trading analysis, and the associated timing
reports that I have prepared for each of these stocks.
Google (GOOG): Google
has settled into a mid term neutral trading channel
after having experiencing a sharp reversal higher in the
middle of April. That mid term neutral channel
should be respected. The stock is currently
floundering in the middle of that channel after having
recently testing neutral mid term support, but a re-test
of support is not out of the question. Although
the current process seems to be an oscillation from
support to resistance, the abrupt test of support that
occurred recently is not definitive enough to set that
upward transition in stone. Instead, Traders need
to be prepared for a pullback to mid term support levels
just in case. Specifically, we have identified
this as mid term parameter #1 in our real time trading
report for GOOG. If that support level is tested
buy signals will present themselves according to our
combined multi-tier analysis. Until then,
avoid buying GOOG right now
due to the increased risk/reward. Sit on your
hands, wait for earnings to come out, and if the stock
dips to mid term parameter #1 as offered in our report,
buy it with an upside target of mid term parameter #3.
The entire report is available to our members and trial
members right now.
International Business Machines
(IBM): IBM appears poised to increase from current
levels after coming very close to longer term support as
defined in our real time trading report for IBM.
The oscillation process is
higher, towards resistance, but IBM faces a
hurdle along the way. Our trading analysis also
defines a level of INTRA channel resistance which needs
to be surpassed before IBM can officially test longer
term resistance again. Thus far IBM has not
successfully passed this inflection point. We have
defined INTRA channel resistance as longer term
parameter #2 in our real time trading report for IBM.
If IBM is capable of moving above this level it will
continue to move higher and test longer term parameter
#3 according to our report. Otherwise, a pullback
to support is likely. Our entire report defines
these parameters and provides specific trading plans for
traders and investors interested in trading IBM on the
heels of this quarterly earnings release.
Our reports are available to all
of our members and trial members. Click the link
at the top of this page to sign up if you are not a
member.
Thomas H. Kee Jr.
Thomas H. Kee Jr.
President and CEO
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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