NEW YORK (TheStreet) -- Today we crunch the numbers on a semiconductor company that reports quarterly results after the closing bell on Thursday and that set a new all-time intraday high on Tuesday. Also reporting today are a consumer discretionary company and a retail-wholesale company whose stock traded to a 2014 low.
Another retail-wholesale company reports before the opening bell on Friday.
With one stock up 32% year to date and another down 27% year to date you can understand how difficult it is to pick stocks even with the S&P 500 Index setting new highs almost daily recently.
The profiles below provide trading guidelines for the stocks in two "crunching the numbers" tables that follow.
Ann Inc. (ANN) ($38.20), up 4.5% year to date. Analysts expect the retailer of upscale women's clothing to report earnings per share 34 cents before the opening bell on Friday. The stock set a multiyear intraday high at $43.61 on March 21, and went as low as $37.89 on May 7. It's above its 200-day simple moving average at $36.26.
The weekly chart is negative with its five-week modified moving average at $39.09 and its 200-week SMA at $29.39. An annual value level is $30.67 with a monthly pivot at $39 and quarterly and semiannual risky levels at $41.36 and $44.18, respectively.
Avago Tech (AVGO) - Get Report ($70.10), up 32% year to date. Analysts expect the maker of analog semiconductor devices to report EPS of 67 cents after the closing bell on Thursday. The stock set an all-time intraday high at $71.28 on May 27, well above its 200-day SMA at $52.36.
The weekly chart is positive but overbought with its five-week MMA at $66.18. Weekly and semiannual value levels are $65.85 and $64.94, respectively with a monthly risky level at $71.24 which was tested at the high.
Express (EXPR) - Get Report ($13.55), down 27% year to date. Analysts expect the specialty retailer of women's and men's apparel to report EPS of 14 cents after the closing bell on Thursday. The stock gapped below its 200-day SMA on Dec. 4, and continued to slump to a 2014 intraday low at $13.54 on May 22 and May 29 with the 200-day SMA at $19.18.
The weekly chart is negative but oversold with its five-week MMA at $14.69 and its 200-week SMA at $18.79. A quarterly value level is $10.77 with a weekly pivot at $13.42 and monthly risky level at $16.95.
Lions Gate Entertainment (LGF) ($28.78), down 9.1% year to date. Analysts expect the entertainment company to report EPS of 39 cents after the closing bell on Thursday. The stock set an all-time intraday high at $37.81on Sept.10, and traded back and forth around its 200-day SMA between Dec. 9 and March 13 before trading as low as $24.54 on March 28. It's below its 200-day SMA at $31.42.
The weekly chart is positive with its five-week MMA at $27.58. Semiannual value levels are $27.61 and $22.07 with a weekly pivot at $28.32 and a quarterly weekly risky level at $34.48.
Your investment policy among these stocks depends on whether or not you are a buyer on weakness or a seller of strength. We advocate using a good-'til-cancelled limit order to buy weakness to a value level or to sell strength to a risky level.
Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics
This table provides the technical status for the stocks profiled in today's report.
There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.
The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.
Interpretations: Stocks below a moving average are listed in red.
Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.
A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.
A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.
A stock with a neutral technical rating has a profile that is not positive or negative.
The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon.
The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.
The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.
The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six- to 12-month horizon.
Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell
This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.
EPS Date is the day the company reports their quarterly results.
EPS Estimate is the earnings per share estimate from Wall Street analysts.
Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.
Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.
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At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff
Richard Suttmeier is the chief market strategist at
ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.
Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.
Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.
Click here for details on Suttmeier's "Buy and Trade" investment strategy.
Richard Suttmeier can be reached at RSuttmeier@Gmail.com