Take Advantage of Earnings Volatility

Pfizer (PFE) ($24.58 vs. $25.43 on Oct. 29): When the stock market reopened Oct. 31 this stock traded up to my quarterly risky level at $25.74, where profits should have been taken. The stock is now below its 50-day SMA at $24.79. The weekly chart profile is negative with the five-week MMA at $24.78. My semiannual value level is $20.51 with the quarterly pivot at $25.74.

Barrick Gold (ABX) ($35.08 vs. $39.18 on Oct. 29): Tested its 200-day SMA at $40.69 Wednesday for an opportunity to sell strength. I do not show a value level but my semiannual pivot is $37.60.

Teva Pharmaceuticals (TEVA) ($41.14 vs. $40.39 on Oct. 29): The stock is trading between its 50-day SMA at $40.40 and its 200-day SMA at $41.80.

Exxon Mobil (XOM) ($90.63 vs. $90.62 on Oct. 29): Weakness on Monday held my monthly pivot at $89.78 with the close just below the 50-day SMA at $90.77. The weekly chart shifts to negative on a close this week below the five-week MMA at $90.62. This week's risky level is $92.87.

Newmont Mining (NEM) ($48.39 vs. $53.07 on Oct. 29): My annual pivot and semiannual risky level at $53.89 and $54.88 last Wednesday where investors and traders were advised to sell strength. The stock ended last week below my quarterly pivot at $49.36. My new monthly value level is $41.67.

Starbucks (SBUX) ($51.01 vs. $45.87 on Oct. 29): Matched revenue estimates and gave an optimistic outlook. The stock popped above my semiannual pivot at $49.81 on Friday to a test of its 200-day SMA at $51.37. My annual value level is $44.25 with a monthly risky level at $53.41.

Chevron (CVX) ($109.19 vs. $111.18 on Oct. 29): Traded down from $111.94 last Wednesday to a test of its 200-day SMA at $107.57 on Friday. My monthly value level is $107.67 with a weekly risky level at $113.22.

At the time of publication the author held no positions in any of the stocks mentioned.

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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at [e-mail].

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