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CarMax, Micron, Monsanto, Texas Industries: How to Trade These Stocks Now

NEW YORK (TheStreet) -- Shares of Monsanto (MON - Get Report), Micron Tech (MU) and Texas Industries (TXI) sold off with the broader stock market Friday and Monday after the three companies reported earnings that beat analysts' estimates. Today I'm going to tell how you to trade them going forward.

I profiled these three companies and CarMax (KMX - Get Report) before they reported earnings. CarMax's results failed to match analysts' estimates.

The three earnings winners traded up following earnings but later weren't able to avoid the broader selling pressure.

Today we provide postearnings profiles, including two "Crunch the Numbers" tables to help investors navigate stock-specific share price volatility.

Our first table (on the next page) covers each stock's technicals, including five important moving averages and updated readings on the 12x3x3 weekly slow stochastic for each stock.

To review, 12x3x3 weekly slow stochastic is our measure of momentum, which tracks weekly highs, lows and closes over the last 12 weeks. Stochastic readings rise in a positive trend when weekly closes are closer to the week's high, and tend to begin to decline when weekly closes are closer to the week's low. The stochastics give investors an advanced warning that the trend in a stock or index may be reversing. Readings scale from zero to 100 with readings of less than 20.00 being oversold and readings of more than 100 being overbought. When stochastics decline to less than 80, it's a negative sign. When they rise to more than 20, it's a positive sign.

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The second table shows earnings and value levels at which to buy on weakness and risky levels at which to sell on strength.

We crunched the numbers to help you decide if and when to invest. See today's tables following these profiles.

CarMax ($43.68, down 6.7% since March 31) reported earnings before the opening bell on Friday and missed the average analyst estimate for earnings per share by 1 cent. EPS was 52 cents. The stock failed at its 200-day simple moving average at $48.11 on April 3 and gapped below its 50-day SMA at $47.11, trading as low as $43.38 on Monday. Investors looking to reduce positions before the earnings announcement could have done so on April 3.

The weekly chart shifted to negative from neutral with the five-week modified moving average at $46.23. A monthly pivot is $45.97 with semiannual and quarterly risky levels at $46.64 and $47.29, respectively.

Monsanto ($112.30, down 1.3% since March 31) reported earnings before the bell on Wednesday and beat the consensus EPS estimate 6 cents a share with EPS of $3.15. The stock traded as low as $111.63 on April 2 then as high as $117.47 on April 3, just below the multiyear intraday high at $117.50 set on Jan.2. The high was a test of last week's risky level at $117.43 where investors could have reduced positions after earnings.

The weekly chart shifts to neutral from positive given a close this week below its five-week MMA at $112.34. Semiannual value levels are $88.87 and $88.55 with a weekly pivot at $114.45, and monthly and quarterly risky levels at $119.25 and $124.98, respectively.

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