This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stocks Are Still Overbought, but Signal of Top Hasn't Arrived

Stocks in this article: MCP NVDA PCLN RAX

Here's my up-to-date Market Pulse, which shows the upside potential to semiannual risky levels and the downside risks to annual value levels. For the Dow industrials the upside is 6.9% with 17.7% downside risk.

Here's the scorecard for the stocks that reported earnings results after the bell Thursday. These were previewed on Aug. 6 in, Groupon, Tesla and Priceline Headline Earnings Previews.

Molycorp (MCP - Get Report) ($6.69) missed EPS estimates by 9 cents by reporting a loss of 36 cents a share. The producer of rare earth oxide continues to have a sell rating, according to ValuEngine and closed Thursday at $7.41. The stock traded into the investor woodshed with a low of $6.21 on Friday, but the close was above its 50-day SMA at $6.44. My monthly value level is $4.74 with a weekly risky level at $7.49.

NVIDIA (NVDA - Get Report) ($14.49) beat EPS estimates by 3 cents by reporting EPS of 16 cents a share. The maker of 3-D graphics processors has a buy rating and closed Thursday at $14.70. The stock traded as low as $14.11 on Friday but closed above its 50-day SMA at $14.38. My quarterly value level is $11.20 with weekly and monthly pivots at $14.43 and $14.95 and semiannual risky level at $17.21. (PCLN - Get Report) ($969.89) beat EPS estimates by 5 cents earning $9.05 a share. The online "name your own price" retailer continues to have a buy rating and closed Thursday at $933.75. The stock began Friday with a moon shot to $994.98, which is significantly greater than my semiannual pivot at $935.65. The stock ended the week below a new weekly pivot at $975.31. A buy rating means that the stock will gain at least 5% over the next 12 months. Priceline is projected to gain 8.4% which is a $1,050 price target.

Rackspace Hosting (RAX - Get Report) ($47.85) beat EPS estimates by 3 cents, by reporting EPS of 16 cents a share. The Web-hosting company still has a hold rating and closed Thursday at $44.22. The stock surged to $49.50 on Friday. The stock is trading between its 50-day SMA at $40.37 and its 200-day SMA at $54.96. My monthly value level is $35.36, with weekly and quarterly risky levels at $51.75 and $56.26.

At the time of publication, Suttmeier had no positions in stocks mentioned.

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 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
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs