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Fossil, Michael Kors Beat, Four Go to the Woodshed

NEW YORK (TheStreet) -- Stocks slipped on Tuesday on comments by Federal Reserve officials saying the FOMC would likely opt for some tapering of QE3 and QE4 purchases of agency mortgage-backed securities and longer dated Treasuries as early as next month.

Two key levels came into play among the five major equity averages. The Nasdaq traded below my monthly pivot at 3663, but closed above it. The Russell 2000 closed just below its weekly pivot at 1053.08. Weakness in these two indices is important to watch as they are the most overbought on their weekly charts.

Fundamentally the ValuEngine valuation warning continues with 76.7% of all stocks overvalued with 44.1% overvalued by 20% or more. 15 of 16 sectors are overvalued, 14 by double-digit percentages including 10 overvalued by more than 20%.

Seven of the eight companies that reported quarterly results premarket on Tuesday handily beat EPS Wall Street estimates. I profiled these eight stocks on August 5 in, Michael Kors, Dish and Molson Coors Earnings Preview. Today I provide a scorecard for these stocks, and profile four stocks of interest that were taken to the investor woodshed on company specific negative news.

Scorecard from stocks that reported earnings results premarket on Tuesday:

Archer Daniels (ADM) ($37.89) beat estimates by 4 cents earning 46 cents a share. The stock opened lower on Tuesday but then traded up to a new multi-year high at $38.18 despite having a sell rating by ValuEngine. My semiannual value level is $33.38 with a monthly pivot at $38.75 and annual risky level is $39.17.

CVS Caremark (CVS) ($59.89) beat estimates by 4 cents earning 97 cents a share. The stock traded down to its 50-day simple moving average at $59.53 on Tuesday even with a buy rating. My quarterly value level is $58.42 with a weekly pivot at $61.65 and monthly risky level at $64.95.

Dish Networks (DISH) ($44.91) beat estimates by 6 cents earning 60 cents a share. The hold rated stock opened lower trading down to $43.60 then rebounded to $46.00. My semiannual value level is $43.28 with a weekly risky level at $47.31.

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