Ahead of Earnings: JPM, NOK, IBM
July 15, 2009
By Thomas H. Kee Jr.
Chief Investment Officer, Stock Traders Daily
Risk control: Control your risk and realize opportunities regardless of market direction or economic conditions, and do it without sacrificing time or lifestyle. Trend Tracker. This is the most powerful tool on the Market. It allows individual investors to take advantage of their competitive advantages. We can control our risk better than institutional investors ever could, and Trend tracker gives us the opportunity to do it without making mistakes.
(La Jolla, CA) Earnings season brings anxiety to the table, and investors sit on edge as the stocks they own report results. In this weak economy, who knows what to expect. Although this often gets lost in the shuffle, there are some investors who do know. We call them smart money. They might be insiders, or they may be sophisticated investors who measure suppliers and distribution chains against probable revenue streams. Regardless of who they are, they make decisions with their pocketbook, and if we pay attention to what they are doing, maybe we can get an edge up on the market, just like they have.
This is what technical analysis provides. It tells us when smart money is making decisions to buy and sell. It offers trend analysis, and it can provide insight to what lies ahead. The analysis referenced in this article aims to reveal those trends and offer insight ahead of earnings releases. Details are provided and access to real time reports are available for each of the stocks mentioned.
JP Morgan (NYSE: JPM), JPM appears to be in the process of increasing towards longer term resistance levels. Use longer term parameter #3 in our real time trading report as a target. In addition, longer term parameter #2 acts as the risk control for any position considered near these levels. If parameter #2 breaks lower, a test of longer term resistance will be far less likely, and anyone long JPM should strongly consider selling it before a pullback to support occurs again. However, if support holds, and it has held thus far, a continuation to longer term parameter #3 should take place. When you review the report using the link above, pay very close attention to these parameters. They should help you manage risk and realize returns in JPM from here.
Nokia (NYSE: NOK), NOK just tested support, and if it holds, expect a test of longer term resistance. Support is defined as longer term parameter #2 in our real time trading report. Longer term resistance is longer term parameter #3. If support holds, expect a test of resistance, but expect the stocks to stall at that level too after it is tested. Immediately, a test of resistance looks likely because support has held, but support also acts as a risk control. If support breaks, a test of resistance will probably not happen, and the risk of a pullback to longer term support will be more probable instead. That would also be a sell signal. Review these parameter now in our report, and use them to make timely decisions.
International Business Machines (NYSE: IBM), Focus on the mid term charts for IBM. The stock looks like a better swing trade than a longer term hold, because the mid term channels are easy to define. IBM recently tested mid term support, and now it looks poised to increase to resistance. We have defined this as mid term parameter #1 in our real time trading report. If support holds, and it has thus far, our report tells us to expect a test of mid term resistance. This is defined as mid term parameter #3 in that same report. From there, an oscillation back to support is likely again, and the same pattern should repeat itself. Review our report now for details. It will help investors in IBM from here. Remember to focus on the mid term parameters.
Author has no positions in these companies