echotoall.com Blog

Took a look through my many many charts, and AXP jumped out.

Techincally, it looks like a nice entry point. The recent decline is thanks to the earnings miss, and ‘ho-hum’ guidance issued by management. Obviously these are things to be concerned about, but based on the recent quarterly report I don’t think it merits staying away from the stock. IMO, management set the bar low. Also, an analyst at Stifel Nicolaus essentially stated,
AXP pretty much did very good w/top line, but not so well for bottom line due to investments that should pay off later. This etting the bar low for better performance in the future. To me, that translates into a buy signal when I look at a chart like the one above.

Now a caveat, when looking at a 2yr chart, AXP has a history of being around the 200SMA during declines. So enter in stages, monday can act as a good 1st stage entry point. And 55 can be 2nd stage. Keep in mind, Fed will be talking on the 31st, and what happens there may cause a decline in the market. (A lowering tide usually lowers all boats, except for the really cheap ones like COF.)

so far, not one to point stuff out like this… but i’ve been doing pretty good lately.

CTXS… bought at 28.67, sold at 32.06 (thanks for the heads up bill)

COF… bought at 74.89, Sold today 80.11 (will buy back when it is oversold)

FMD… bought at 52.75 (nice report today, should test its high will look to sell if it does)

SLB feb 07 62.5 call options… (nice 40% gain in one day… sorry i didn’t mention it, but it was too much of a day trade move to signal it out.)

1. Just got into FMD. Just off from sitting on its 50 SMA. Looks like a nice entry for this solid inexpensive grower.

2. Started biting on Apple . First line of support is mid 85. Will sell if it rallies to 95 again, but i doubt it unless a catalyst is present. It may see 77 in a week nasdaq, and will add another 3rd there. Do not expect it to go lower than 77… still too much potential here.

3. Already in COF, and waiting for it to break its downtrend before I enter more.

4. CTXS could see a nice pop tomorrow on earnings. The chart looks like a ‘coiled spring’… just waiting for a reason to break its downtrend.

at least for a few more points to the upside.

Although JPM issued an upgrade, the move was foreseen. The retail numbers were really good in Jan, and trend should continue. Also, FDX is supported by its index. The Transportation index has been in a powerful run as of late. Looks pretty bullish, although a little late to the market party.

The index may consolidate causing FDX to drift sideways until it is done. (and earnings like INTC do not help the market, subsequently limit FDX’s ability to run) FDX looks like it can move upward a big more, at least to 115-116.

(i’m currently not in FDX.)

Highlight a stock sooner… DD. (My work is starting to interfere with my hobbies. I’m just going to have to start trading full time The chart was ripe for a move, along with the fundies. With crude dropping and in the low 50s, and economic growth still intact, earnings on Jan 23rd should be really good w/ increased margins.

The stock was a buy this morning (when I bought it), and it looks to have some room. Here is a chart.