UNH insider sales flash a warning sign ahead of earningsUnitedHealth Group has had an incredibly strong showing this year, and right now it's priced pretty attractively at oversold level on the hourly chart. On its daily chart it's at RSI 38, nearing oversold (RSI 30) but not quite there yet. It also hasn't yet tested its August low of 220.78 or its one-year lows of 208.07 and 216.84. I suspect we'll get a bounce tomorrow from the hourly oversold level, then fall some more to the 216-220 range. At that point we should be about oversold on the daily chart and should bounce into earnings on October 15.
The average analyst price target on UNH is about 299, implying about 33% upside from the current price. Analyst estimates of UNH earnings have held steady for the past month at 3.77, significantly better than 3.41 the same quarter last year. UNH has an 8.7/10 Equity Starmine Summary Score rating. So most signs are bullish. However, company director Richard Burke sold 10,000 shares last week. Other directors also recently sold thousands of shares. All this insider selling doesn't inspire confidence for good earnings this quarter. On that basis alone, I don't think I'd hold this for anything more than a pre-earnings bounce. On the other hand, insider sellers may be responding to political risk rather than to the company's financials.
The healthcare sector is expected to report good earnings this quarter, which could make it attractive as a defensive play in an earnings recession. Healthcare is a defensive sector that usually does well when the rest of the market is down. Right now healthcare stocks are cheap, which makes them even more attractive. However, with Elizabeth Warren leading the Democratic pack, UNH's share price may continue its breakdown. Health insurance and pharmaceutical companies are at particular risk from Warren's "Medicare for All" plan, and you may be able to chart healthcare stocks' performance from now until the election as a function of Warren's popularity in the polls.
Analysts
Upgrades and insider buying bode well for FunkoFunko had a substantial insider purchase on September 5, hired a new board member, and has had a lot of analyst upgrades recently. It now has a 9.1/10 Equity StarMine Summary Score. It's also rated highly undervalued by S&P Capital IQ. With several recent earnings beats, all indicators are good for this stock. Watch for a breakout above the ascending triangle.
Look to buy the dip on NETEASE around 262Netease remains undervalued even after its recent surge. Its Equity StarMine rating is still sitting at 9.8/10, making it a high-rated stock. It currently looks to be to be cycling down to support around 262. That's a good buy level before a move up to previous highs around 289.65. Recognia's Elliott Wave price target is 299.62.
Several buy signals on UNHI've been watching UNH closely ever since its big guidance upgrade on the last earnings report. The stock chose that moment to start tanking, and it's been tanking ever since. Hopefully the market has now had enough of this down trend and is ready for the stock to recover.
Zacks, one of the best-performing analytics firms, upgraded UNH today to a buy. It's got an 8.3/10 Equity StarMine Summary score. UNH also flashed a buy signal a few days ago on the reverse RSI indicator, and it's in oversold territory on the daily stochastic. There's strong support from volume in the 220-228 range, so this is a good range to buy. Below 220, we could fall to 212 or 200.
AEP, American Electric Power Co. Inc. - Rectangle PatternNYSE:AEP
People like to use indicators or oscillators many times to predict the next trend.
Actually they can help you, but they will always be late.
And above all, what do you do if they are in contrast with each other?
Most importantly, do you have a backtest that proves in the long run that their use is profitable and valid on multiple markets and assets?
We go ahead on our technical analysis, aware of what makes us through backtest statistics and confirmed in real operation for years now aware of the deviation that may have on the annual average.
In this case we are waiting for a long breakout of this rectangle if it happens, knowing what is the Risk/Reward, the %Profitability, the size of the position aware of the entry and exit point and risk management.
Stay Tuned!
finance.yahoo.com
AAPL Earnings Report Gap FailsAlthough Apple news claimed that the company “beat expectations,” the stock gapped up and quickly reversed, then moved down further. This is due to their Guidance for the next quarter. Many companies are able to beat the analysts’ estimates, but forecast lower for next earnings season.
Micron upgrade, call activity, and ascending triangle breakMicron (MU) got an upgrade to "strong buy" over the weekend from Zack's, the best-performing analytics firm. It also got some huge options volume today, targeting $49 and $55 per share. That's probably on the strength of both the Zack's upgrade and the stock's ascending triangle break. The triangle break implies an upside of about $6 per share from the current level.
Zynga near support nodeZynga has a high-volume support node at 6.19 and could see a bounce from this level. I've got my stop loss at 6.15.
ZNGA has a 7.7/10 Thomson Reuters Starmine Equity Summary Score, which is a really good rating.
GCAP double bottomGain Capital Holdings has formed a mini double bottom and broken a couple trendlines. It should get up to at least the next trendline, though I have my doubts as to whether it can push through.
The stock usually does well ahead of earnings, and right now it's being bolstered by an optimistic press release put out by the CEO promising good results from the next earnings report. It also got an upgrade from Zacks on June 26 from "Strong Sell" to "Hold."
But yeesh, the ratings are still pretty bad, and the press release wasn't *that* optimistic. I don't think I can bring myself to place a buy order on this one, despite the bullish chart.
OEC breakout potentialOrion Engineered Carbons has generally positive analyst ratings and positive earnings growth. Recognia's Elliott Wave analysis puts OEC in a bullish Wave 3 move with a price target of 22.71.
OEC missed earnings estimates last quarter and took a pretty big hit. But with the materials sector looking so hot right now, I suspect OEC will indeed break out above the April high of 21.71 and head north to test 22.71. It may even move all the way up to 24.
Skyline Holdings headed to bottom of parallel channelSkyline Holdings has formed a new parallel channel, with long-term trendline support at its channel bottom. It's currently oscillating toward channel bottom, but with great analyst ratings and a recent earnings beat, we should see another upward oscillation after that. Buy long near the trendline.
As always, this is just an idea about how the market will move, not investment advice.
NUVA is oversold & will be recovering from post-ER overreactionOn the daily chart, MACD and price have diverged nicely. On the weekly, stochastic is showing oversold. We are also at the .618 fib level from 52 week high. I'm going to call bottom between 52 and 54 before we start recovering. Also 35% retracement looks similar to February of last year.
OIG subpoena is only related to one customer and will have a small effect. Management changes are short-term hurdles that the market will forget soon. The company recently released LessRay which offers reduced radiation in imaging. They also bought out Vertera Spine.
Vanguard picked up 4.1 million shares recently with many other institutions increasing their positions. Average TP is 79.67 across 19 analysts which is also pretty good.
USDCHF (DAILY) TREND LINE BREAK TOWARDS DOWNWARD MOMENTUMUSDCHF daily candlestick close below ascending trend line,
confirmed by the cross of the ma's at that particular point,
clear divergence shown on the stochastics,
leading to a high probability of a continued downward spiral towards targets 1 + 2.
Price action on smaller timeframes to confirm my position to the downside.
High risk/reward at 1:4
Tesla: Negative reports exaggerated, positive news ignored.Recently with Tesla, Positive news has been ignored and negative news has been exaggerated. This irrational pessimism, combined with high short interest might indicate a rapid momentum upwards swing is in order. This is especially true if Tesla chooses to announce their CPO program or their stationary storage product soon.