NEW YORK ( TheStreet) -- "And the Beat Goes On" was a huge hit for Sonny & Cher way back in 1967. This has to be the theme song for the Q4 2012 earnings season as "drums keep pounding a rhythm to the brain" as company after company beat earnings expectations.On Jan. 7 I kicked off my analysis of the Q4 earnings in
Before the open on Jan. 16, Goldman Sachs ( GS) ($137.13) beat EPS estimates by a whopping $2.13 earning $5.60 per share. The stock popped higher setting a new 52-week high at $146.28 on Tuesday. The stock maintained its buy rating with this week's value level at $139.29 with my semiannual risky level at $180.10 where the stock traded back on April 17, 2010. After the close on Jan. 17, Intel ( INTC) ($22.00) beat EPS estimates by 3 cents earning 48 cents per share. Intel gapped lower at the open on Jan. 18 trading as low as $21.03 versus the weekly pivot at $21.17 on cautious forward guidance. Intel still has a buy rating with my semiannual value level at $19.80 with this week's pivot at $21.81 and quarterly risky level at $24.88. GE) ($21.13) beat EPS estimates by a penny earning 44 cents per share. General Electric traded as high as $22.20 on Tuesday. Going into this report General Electric was upgraded to buy according to www.ValuEngine.com. My semiannual value level is $19.17 with a quarterly pivot at $21.19 and monthly risky level at $22.26. Before the open on Jan. 18, Schlumberger ( SLB) ($73.75) reported in-line EPS earning $1.08 per share. SLB traded up to $78.04 on Tuesday. The stock remains buy rated with this week's value level at $72.99 with semiannual risky level at $94.62. On Jan. 21, I wrote,
How to Trade the Big Stocks Reporting Earnings Tuesday and the beats go on, as eight of the nine stocks I profiled beat EPS estimates. I will provide a scorecard on these plus Apple tomorrow. The Dow Industrial Average (13,712.21) closed Tuesday above my quarterly pivot at 13,668 and its daily chart has become even more overbought with a 12x3x3 daily stochastic reading at 95.09 on a scale of 00.00 to 100.00 with a reading above 80.00 being overbought. A close this month above 13,668 puts the focus on my quarterly and semiannual risky levels at 14,118 and 14,323. Without a monthly close above 13,668 on Dow industrials the risk is to my annual pivot at 5469 on Dow transports, which closed Tuesday at another new all time closing high at 5757.44. To confirm a Dow Theory Buy Signal the Dow industrials need to have a daily close above its all-time closing high of 14,164.53 set on October 9, 2007.
The daily chart for Dow transports is even more overbought with its 12x3x3 daily stochastic reading at 97.44, one of the highest levels I can recall. Fundamentally, ValuEngine.com shows the most overvalued configuration for this stage of the stock market rally. We show just 40.6% of all stocks undervalued with 59.4% overvalued. All 16 sectors remain overvalued with 8 overvalued by double-digit percentages; consumer staples by 25.9%, construction by 21.8%, transportation by 21.2%, industrial products by 18.8%, finance by 14.7%, retail-wholesale by 14.0%, medical by 13.7% and computer & technology by 13.1%. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.