July 21, 2008
Almost everyone expects the theme
this week to be short covering. Although many big
players are indeed locking in their gains from recent
aggressive short positions, this expected short covering
rally largely depends on the health of Corporate
America. Earnings season is well underway, and a
key indicator of the health of our leading companies.
The stocks included in this
article are scheduled to report earnings soon. The
corresponding reports referenced herein are offered
without bias to provide interested traders and investors
a clear understanding of the underlying sentiment
derived from our multi-tiered technical analysis.
For our members, these reports are available by clicking
the links provided.
American Express (AXP):
AXP has broken its longer term channel, at least for
now, and the stock appears poised to trade within a weak
(downward sloping) mid term channel for the time being.
Currently, the stock is in the
process of oscillating higher from a recent
test of mid term support towards a test of mid term
resistance again. Additional upside seems likely
according to our combined technical analysis, but at the
same time upside appears limited so long as mid term
resistance holds. Therefore, mid term resistance
should be respected as an inflection parameter for AXP.
We have defined mid term resistance as mid term
parameter #3 in our real time trading report. If
this resistance level remains in tact expect the stock
to decline back towards mid term support (mid term
parameter #1). However, a break above mid term
resistance would present a compelling case for higher
levels. Specifically, if mid term parameter #3
breaks higher expect continued increases and a test of
longer term parameter #3 (longer term resistance) over
time. This report is not suggesting either a buy
or a short in AXP, but instead it is offering the
catalysts which should guide the decisions to buy or
sell. For members and trial members this report is
available by clicking here:
http://www.stocktradersdaily.com/clubsite/Club2/SSD/NewFocusStock.php?Stocks=axp
Apple (AAPL):
A red flag has appeared in the
technical charts for AAPL and traders need to
respect this warning. Although AAPL is heavily
touted in the news, an innovator, and loved by diehard
users, the stock may be vulnerable if it remains under
longer term intra-channel support levels. Recently
AAPL pulled back without testing longer term resistance,
and more recently the stock broke below a longer term
INTRA channel support level as well. This is
Bearish on two counts. We have defined INTRA
channel support as longer term parameter #2 in our real
time trading report for AAPL; support has been converted
into longer term INTRA channel resistance after it was
broken lower. If the stock remains under this
level AAPL is poised to decline all the way to longer
term support again; this has been defined as longer term
parameter #1 in our report. Again, AAPL is
offering red flags, and if it remains under longer term
parameter #2 a decline all the way to longer term
parameter #1 should be expected before the stock
stabilizes. However, if AAPL reverses course and
breaks back above longer term parameter #2 immediately,
a bullish sign will indeed surface again instead, and
the stock will regain the potential to test longer term
resistance (longer term parameter #3) officially.
These data points are dynamic and should be monitored
every day. If you are a member or a trial member
please click here to review our real time trading report
for AAPL, and focus on longer term parameter #2:
http://www.stocktradersdaily.com/clubsite/Club2/SSD/NewFocusStock.php?Stocks=aapl
SanDisk (SNDK): SNDK is in
a longer term down channel and the stock is not offering
any signs of breaking that longer term down channel at
this time. First, SNDK has not yet tested longer
term support, so additional downside appears probable
until that happens. Second, SNDK is approaching
longer term INTRA channel resistance, and this could be
a key inflection point. Although longer term down
channels are not broken, a break above longer term INTRA
channel support could change that. If it holds
though, which the longer term charts suggest at this
time, further declines will occur according to our
analysis. Thus far
bearish indicators prevail in the patterns associated
with SNDK, but watch closely for a change.
Specifically, monitor longer term parameter #2 in our
real time trading report for SNDK; this is INTRA channel
resistance. If resistance holds a significant
decline and an official test of longer term support
(longer term parameter #1) should be expected.
However, a break above longer term parameter #2 would
offer a bullish sign and an increase to longer term
resistance (parameter #3) should be expected instead.
In summary, SNDK is approaching an inflection level
within a longer term down channel, and thus far there
are no bullish indicators to offer buy signals.
Although bullish indicators could present themselves as
described above, none exist now and instead the stock
currently looks more attractive to short sellers.
Members and Trial members should click here to review th
inflection parameters in our report:
http://www.stocktradersdaily.com/clubsite/Club2/SSD/NewFocusStock.php?Stocks=sndk
Texas Instruments (TXN):
TXN recently tested longer term
INTRA channel resistance and the stock has
since begun to pull back. If this inflection
parameter holds expect additional declines and an
official test of longer term support.
Specifically, we have defined longer term INTRA channel
resistance as longer term parameter #2 in our real time
trading report for TXN, and support as longer term
parameter #1. If longer term parameter #2 remains
in tact expect the stock to decline all the way to
longer term parameter #1, and bounce higher from there.
This would be the bearish case obviously. On the
other hand, if longer term parameter #2 breaks higher
instead expect a surge and a test of longer term
parameter #3 (longer term resistance) instead.
This would be a bullish sign obviously, and a buy
signal. Details are available for our members and
Trial members to review here:
http://www.stocktradersdaily.com/clubsite/Club2/SSD/NewFocusStock.php?Stocks=txn
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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