BALTIMORE ( Stockpickr) -- Earnings season is dragging on this week, as firms post an unsurprising level of earnings surprise to Wall Street. Try saying that five times fast.
As I write, just over 175 S&P 500 components have released their earnings for the quarter, and the numbers have been extremely consistent on average. Earnings are up around 3% on the quarter, and more importantly, 73% of those firms have beaten their consensus estimate so far. Translation: analysts are still too bearish on corporate fundamentals.
But there's a more interesting story in the technicals right now.In last week's column, as the S&P was dropping hard, I said that "until the technicals say otherwise, we're still in a market where it's paid off to buy the dips. And the technicals don't say otherwise until the S&P falls through its 50-day moving average." Sure enough, that bounce off of the 50-day proved to be a great buying opportunity. >>5 Toxic Stocks You Need to Sell Now, as long as that rally remains intact in the S&P, we're going to be in an attractive environment for trading. Today, we'll take a technical look at five big name stocks worth trading for earnings season. If you're new to technical analysis, here's the executive summary. Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time. Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade for gains. >>Fight Your Urge to Fight the Fed