Schaeffer's Trading Floor Blog

Readers Respond - GLW?

by 5/6/2005 3:50 PM
Stocks quoted in this article:

Levi asks - "GLW on the equity scorecard ranks low but if you look at the charts it looks very good. Weekly its above all averages, 20, 50 and 200. Short interest also doesn't look too bad. Why is the scorecard so low?"

My response - As you can see in the monthly chart below, Corning (GLW) recently broke out of a long consolidation pattern that followed an uptrend in 2003...


Created with SuperCharts by Omega Research

However, the scorecard is looking for heavy skepticism and as you can below, that is lacking...

  • Percent of analysts tracked by Zacks who rate the stock with a "buy": 82%
  • Number of analysts tracked by Zacks: 11
  • Short interest ratio: 4.629
  • Put/call ratio percent rank: 54.7%

Wall Street is optimistic which offers a note of caution. The short interest isn't "awful" but it also isn't enough to push the scorecard higher. Meanwhile, the put/call is flashing neutral. In other words, the recent price action is encouraging but overall, the sentiment backdrop is neutral. This doesn't mean the shares have to reverse, but I would like to see skepticism on this rally pick up...


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Stocks quoted in this article:

In response to my post below a reader asks - "Nick, when do CSCO and DELL report?"

My response - Cisco Systems (CSCO) is scheduled to report earning May 10 (after the market close) while Dell (DELL) is expected May 12 (after the market close). Here are current sentiment profiles...

Quick Facts on DELL

  • Percent of analysts tracked by Zacks who rate the stock with a "buy": 75%
  • Number of analysts tracked by Zacks: 24
  • Short interest as a percent of float: 1.3%
  • Short interest ratio: 1.742
  • Put/call ratio percent rank: 23.4%

Quick Facts on CSCO

  • Percent of analysts tracked by Zacks who rate the stock with a "buy": 67%
  • Number of analysts tracked by Zacks: 30
  • Short interest as a percent of float: 0.7%
  • Short interest ratio: 0.872
  • Put/call ratio percent rank: 93.2%

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Worth a Read

by 5/6/2005 2:13 PM
Stocks quoted in this article:

While the overall action remains quiet...you might want to check out this article from CNN/Money - "Can Cisco and Dell save tech?"...

If offers an idea of what the Street is expecting from tech as we head into earnings reports from Cisco (CSCO) and Dell (DELL). Regular readers are already aware of the concerns I have noted for these stocks so I won't belabor the point.

If you are new to this space you might want to click here for CSCO and click here for DELL to get some background information...

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Rumor

by 5/6/2005 2:02 PM
Stocks quoted in this article:

I have been watching Ameritrade (AMTD) and E*Trade (ET) as both trade sharply higher on heavy volume. Rumors seem to driving the action as there is talk of an acquisition...however there isn't a clear consensus on what sort of acquisition....some seem to be speculating that one of the two will be acquired while other rumors suggest a merger of the two is coming... At this point it all appears to be conjecture but since the stocks are moving and the options are active I thought I would pass along what I am seeing...

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Buying Pressure

by 5/6/2005 1:40 PM
Stocks quoted in this article:

It appears that the bulls are now taking a turn at pushing the market as NYSE net ticks flip from the low readings we saw earlier and surge past +1000. However, this has yet to gain any traction as the broad market indices remain mostly inline with their respective breakeven marks. I just checked my list of Exchange Traded Funds (ETFs) and found that none are moving more than one percent.

I find it curious that we have seen net tick spikes at both ends of the spectrum but the SPX has not made either a higher high or lower low versus yesterday. In other words, despite some signs of both buying demand and selling pressure the market has remained in a narrow range today.

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