BALTIMORE (Stockpickr) -- It's earnings season -- a time when market volatility typically increases on the heels of earnings reports. But just because a large-cap stock's quarterly numbers are uncertain doesn't mean that it can't be traded strategically right now. When the market becomes fundamentally unpredictable, it's time to turn to the technicals.Technical analysis 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. >>Also: 7 Stocks Heading Toward a Breakout Here's this week's look at how some of the biggest names on Wall Street are trading technically.
With a third quarter earnings release slated for Oct. 18, Citigroup ( C) is sure to be one of the most closely watched stocks next week. After all, this behemoth bank is one of the big four banking firms that serve as bellwethers for the financial services sector -- a sector that's been under increasing pressure to post fundamental improvements following the bailouts of 2008.
A financial firm in Japan is forming a markedly different pattern right now. Mizuho Financial Group ( MFG) has a long history of battling financial troubles. And although the bank has managed to stay afloat during that time, that resilience has come at the cost of outsized leverage and a lack of financial wherewithal. In the short-term, investors are likely to keep bidding shares lower.
MGM ( MGM) is another stock that's getting shellacked in this market. Despite bullish momentum on Thursday, shares of this casino operator opened down nearly 9% on an analyst downgrade and news that the company was going through with a dilutive share offering. Just two minutes into trading, MGM was halted.
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