BALTIMORE (Stockpickr) -- Mediocre economic data released yesterday held stocks in the negative for the day, reminding investors that while good earnings are a welcome change right now, they're not the only determinant of share prices. Economic data continues to have a major impact on stocks, as Wall Street decides how job and economic growth numbers will impact firms' businesses.
This week, the economic data continues to trickle out amid hundreds of companies delivering their results to shareholders. This morning's jobless claims and tomorrow's GDP data should have a big impact on stocks to end July. But while fundamental investors are stuck playing catch-up in this market, we can take advantage of technical insights to lock in short-term gains while the market churns.
uses a stock's price movements to determine where shares are headed in the future. Technical charts are used every day by proprietary trading floors, the Street's biggest financial firms and individual investors to get an edge on the market. And according to some sources, skilled technical traders can bank gains as much as 90% of the time.
at how some of the biggest names on Wall Street are trading technically.
Conquering the stock market has proved to be a challenge for
in 2010 -- shares of the internet giant have already fallen 21% year-to-date. But hold-out investors could find their patience vindicated if a potentially bullish pattern executes in August.
Right now, shares of Google are forming an inverse head-and-shoulders pattern, a bullish signal that suggests a stock is headed for a rally period. For this pattern to trigger buys, we'll need to see shares of the search giant break above shoulder level. With Google's share prices right above support at the 50-day moving average, the chances of seeing that happen are better than most.
That said, the head-and-shoulders is a pattern that often fails before it's fully formed. The key to playing this stock is going to be waiting to see shares move -- and stay -- above shoulder level. Next week offers Google's best chances for the move.
Strong earnings performance in its latest quarter pushed
Las Vegas Sands
into being one of the highest-volume stocks on the Street yesterday, as investors suddenly changed their outlook on how casino stocks should fare in 2010. This isn't the first time I've written about Sands --
earlier this month. Since then, shares have climbed more than 11%.
But shares could be in for much bigger gains.
Las Vegas Sands has been forming a bullish ascending triangle since early May, a pattern that's characterized by higher lows and a strong resistance level. In this case, that resistance level is at $27, a price that shares will need to break through before the "buy signal" is sent off to traders.
With momentum creeping toward being oversold following LVS' latest rally period, I wouldn't be surprised if shares bounced lower off $27 before making an attempt at the $27 level. Don't think about buying until shares hold above that price.
Who Owns Las Vegas Sands?
A low cost structure has helped keep
fundamentally strong even as competitors in the hospitality industry struggled with heavy debt loads and cutbacks in travel spending. That was especially evident yesterday as shares gained more than 8% on second-quarter 2010 earnings numbers.
But the implications of that big intraday gain could be bigger than they seem.
Thanks to that substantial push yesterday, shares of Wyndham moved above the downtrending channel they'd been trading in. That means that Wyndham's upside is no longer bounded by the channel's tight resistance level -- and shares stand to appreciate in the short-term.
I'd expect the momentum from earnings to get shares moving toward mid-term resistance at $27.50. If investor sentiment continues to strengthen, Wyndham could push even higher than that in August.
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-- Written by Jonas Elmerraji in Baltimore.
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At the time of publication, author had no positions in stocks mentioned.
Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.