Stocks: The Good, The Bad and The Ugly

Earnings movers and set-ups

Good morning!

It is the busiest week of the quarter for earnings, and whether it is earnings or another reason, it hasn’t been a great week. That’s important because as we showed on Tuesday, we have both the S&P 500 and a lot of individual stocks sitting just below resistance.

This week we are looking at:

• Good and Bad earnings reactions

• Key levels for stocks that have yet to report

• Defensives perking up

• Medical devices breaking out

• and more!

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Good and Bad earnings reactions

Good: CMG

Holy Guacamole. This is what you call a PEG or Power Earnings Gap. CMG spiked 12.9% on Wednesday to an all-time record high, as publicly traded restaurants of all types continue to lead.

Good: MSFT

So much for that MACD sell signal. Microsoft gained 7.2% yesterday following its earnings report, vaulting the stock to a 52-week high. A bellwether like this clearing the August highs is a big deal, but holding it will be too.

Bad: FRC

Looks like FRC was sending a message by not rallying. After jumping Monday ahead of its earnings report, FRC is down 64% in the past two days.

Bad: UPS

UPS is the largest stock in the Dow Transports and this one hurts. Constructive uptrend from the October lows broken and sitting on 52-week relative lows.

Bad: ENPH

This won’t help the 2-year triangle pattern on TAN. The second-largest stock in that solar ETF fell more than 25% yesterday.

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Yet to report