This morning, the leading integrated energy company Exxon Mobil Corp (NYSE:XOM) is trading lower by 0.23 cents to $99.26 a share. Exxon Mobil Corp stock has been very weak since July 31, 2014 when it plunged lower on heavy volume. Currently, the stock is trading below the important 50-day moving average which is a sign of weakness. Today, day traders should watch for solid intra-day support around the $98.65 level. This was an area that was defended on August 15th and should be good for an intra-day bounce in the stock. [more]
Over the past week Boston Scientific Corporation (NYSE:BSX) has been forming a bearish pattern. As you can see in the chart below, it is now trading below the 20, 50 and 200 daily moving averages. Over the last few trading days Boston Scientific Corporation (NYSE:BSX) has been unable to trade above the wide range red candle put in place on August 7th.
Now is a time for the active trader to consider entering a short position on the stock. Should you take this short trade on Boston Scientific Corporation (NYSE:BSX), the downside target will be $11.93. At that level traders should take profits. Your stop out level will be any daily close above $12.83 which makes for a great risk/reward trade as the stock is currently trading at $12.59.
Over the last several weeks we have seen the yield on the 10 year note trend lower and get to levels not seen in a year. This has taken a toll on insurers like Metlife Inc (NYSE:MET), as the stock had fallen a sharp 11% over the month of July. This was due in part to lower interest rates and a declining stock market. Shares of Metlife Inc (NYSE:MET) have had a decent bounce right alongside the broader markets but is now coming into an interesting level of resistance. I have isolated the $54.25 area as a place where traders and investors could trade this stock on the short side. The reason I have chosen that area is because that was a key level of support which was broken on the way down. In the world of technical analysis, when support is broken, it acts as resistance when the stock tries to challenge it from the underside. Should the level provide stiff resistance as I suspect, then traders could see shares of Metlife Inc (NYSE:MET) easily fall back to the $52.50 area, which would be a quick 3.22% gain in "short" order.
Hewlett-Packard Company (NYSE:HPQ) has a bearish pattern on the daily chart prior to announcing earnings tomorrow after the market closes. While it is not wise to buy/short a stock into earnings, this pattern has to be noted and does give us a general bias (60/40). Let's use this as a case study and watch to see the direction following the earnings report. Earnings will be reported Wednesday, August 19th, 2014, after the market closes. Estimates are for the company to earn $0.89. The whisper number is for a profit of $0.92 per share.
Please note that it is the policy of InTheMoneyStocks to never buy a stock specifically to hold through earnings.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) continues to rally, approaching its next resistance point at $198.50. This is the last resistance level prior to the all time high of $199.06. While a resistance level, do not look for a major pull back on the daily chart. This would be an intra day trade or one day swing trade. Light volume and holiday price action should continue to keep the markets marching towards the 2,000 level on the S&P 500 (SPY 200.00). Cheers and happy trading.