NEW YORK (TheStreet) -- Weakness on the bottom line of an earnings report has become the theme this earnings season, and it's a symptom of QE fatigue at the company level.
The majority of the stocks I have profiled this month have missed revenue estimates and have slumped following the announcements.
Some of these stocks were vulnerable as their weekly chart profiles were already negative or risked becoming negative.
As individual stocks develop QE fatigue, that weakness can spread to other stocks in the same industry or sector. Today I will review the stocks that I profiled late last week and early this week.Last Tuesday, I profiled nine stocks that planned to report results last Wednesday, Thursday and Friday in "Handicapping Key Earnings Reports." Six of these stocks are Dow Jones Industrial Average components. On Monday, I profiled seven stocks that planned to reported results on Monday and Tuesday in "Earnings, It's All About the Bottom Line." Three of these stocks are Dow components. Following are companies that reported earnings last Thursday and Friday: Google (GOOG) ($680.35) traded as high as $759.42 before its earnings report was inadvertently released at 12:30 p.m. EDT Thursday. The price gap lower was below my monthly and quarterly value levels, which are now pivots at $740.41 and $713.85, respectively. The 200-day simple moving average (SMA) is at $632.95. Google was below its 200-day SMA until July 20. Then it rallied in parabolic fashion to an all-time high of $774.38 on Oct. 5. The weekly chart profile will be negative at this week's close, which favors a sell-strength strategy for the stock. Travelers Companies (TRV) ($73.38) spiked higher at last Thursday's open on better-than-expected earnings and is now in a four-day trading range as an island in the sky on its daily chart. With an overbought weekly chart, the stock should come back down to my quarterly pivot at $68.13. Morgan Stanley (MS) ($17.11) opened at $18.57 last Thursday after beating EPS estimates and then traded lower. The weekly chart shifts to negative on a close this week below its five-week modified moving average at $16.81. The downside risk is to my quarterly value level at $13.96.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV