Volatile Trading Follows Apple and Facebook Earnings

NEW YORK ( TheStreet) -- Earnings volatility began in afterhours trading on Oct. 28 when Apple ( AAPL) beat EPS estimates but traded down to my annual pivot at $510.64 as some analysts nitpicked some details of the report. Then on Wednesday in afterhours trading Facebook ( FB) spiked to my weekly risky level at $57.65, but this pop would not be sustained as the company reported lower use of the social network by teenagers.

On Oct. 28 I wrote A Closer Look at Apple, Google and 5 Really Big Stocks Over $200 where I provided my buy-and-trade guidelines for seven popular stocks that trade above $200 a share. Two of these stocks are trading above a grand a share.

On Oct. 29 I wrote General Motors and Facebook Headline Wednesday's Earnings and covered my buy-and-trade guidelines for nine stocks that reported their quarterly results last Tuesday and Wednesday. The bailed out auto maker traded to a new multi-year high on Nov. 1. Facebook had that volatile ride from above $57 in afterhours trading to below its 50-day simple moving average at $47.43 on Oct. 31.

On Oct. 30 I wrote Chevron, Exxon and MasterCard Headline Earnings where I covered another seven companies that reported quarterly results on Thursday and Friday. The headlined energy giants and Dow components had opposite market reactions. The first in the headline gapped below its 200-day simple moving average on Friday. The second in the headline popped above its 200-day on Thursday then faded on Friday.

Here's Today's Earnings Scorecard

Apple ($520.03) beat EPS estimates by 37 cents earning $8.26 a share in afterhours trading on Oct. 28. When you look at a daily chart for Apple you do not see the test of my annual pivot at $510.64, but buy-and-trade investors with a GTC limit order to buy at that pivot may have been filled at that price in afterhours trading. The trading range on Oct. 29 was up to $536.27 then down to $514.54. My weekly and monthly value levels for this hold rated stock are $494.18 and $490.51 with the annual pivot at $510.64 and semiannual risky levels at $620.84 and $621.46.

Con-way ( CNW) ($40.96) missed EPS estimates by 4 cents earning 58 cents a share in afterhours trading on Wednesday. The sell rated trucker detoured to the woodshed as the stock plunged below its 50-day SMA at $43.47 to a low of $40.15 on Oct. 31. The 200-day SMA is $38.69 with a semiannual pivot at $41.77 and monthly risky level at $43.63.

Crocs ( CROX) ($12.38) missed EPS estimates by a penny earning 17 cents a share in afterhours trading on Thursday. By the end of the week the hold rated maker of colorful footwear set a new 52-week low at $11.96. My quarterly value level is $7.64 with a monthly risky level at $13.75.

Cirrus Logic ( CRUS) ($22.40) beat EPS estimates by 23 cents earning 75 cents a share in afterhours trading on Tuesday. The buy rated maker of high performance circuits fell below its 50-day and 200-day SMAs at $23.16 and $21.85 ending the week above the 200-day. My annual value level is $20.74 with a weekly risky level at $23.33.

Chevron ( CVX) ($118.01) missed EPS estimates by 13 cents earning $2.57 a share in premarket trading on Friday. The hold rated energy company and Dow component stayed below its 200-day SMA at $120.42 with a semiannual value level at $113.49, a weekly pivot at $119.63 and annual risky levels at $122.26 and $123.08.

Facebook ($49.75) beat EPS estimates by 4 cents earning 17 cents a share in afterhours trading on Wednesday. When you look at a daily chart for Facebook you do not see the test of my weekly risky level at $57.65, but buy-and-trade investors with a GTC limit order to sell at the risky level may have been filled at that price in afterhours trading. The hold rated social networking stock traded as low as $46.50 on Thursday then as high as $52.09 on Friday. My monthly value level is $46.37 with this week's risky level at $55.80.

General Motors ( GM) ($37.39) beat EPS estimates by 5 cents earning 96 cents a share in premarket trading on Wednesday. The positive reaction drove the hold rated auto marker to a new multi-year high at $38.21 on Friday. My quarterly value level is $35.44 and a weekly pivot at $36.42 and monthly risky level at $40.78.

Garmin ( GRMN) ($46.61) beat EPS estimates by 9 cents earning 69 cents a share in premarket trading on Wednesday. The hold rated maker of navigation devices spiked to a new multi-year high at $50.39 then did an about-face navigating to a week's low at $45.84 on Thursday. My monthly value level is $45.37 with semiannual pivots at $46.20 and $48.10 and my quarterly risky level at $49.82 which was tested at the high.

Linkedin ( LNKD) ($219.90) matched EPS estimates with flat earnings reported in afterhours trading on Tuesday. The hold rated social media stock gapped below its 50-day SMA at $241.89 with the 200-day SMA at $194.70, a quarterly pivot at $222.58 and monthly risky level at $243.20.

MasterCard ( MA) ($737.48) beat EPS estimates by 32 cents earning $7.27 a share premarket on Thursday. The hold rated credit card company slipped to $707.39 then set a new multi-year high at $739.24 on Friday. My monthly value level is $718.29 with monthly risky level at $764.59.

Mohawk Industries ( MHK) ($137.56) beat EPS estimates by 12 cents earning $2.02 in afterhours trading on Thursday. The stock gapped higher on Friday to a multi-year high at $141.19. The hold rated rug maker has a monthly value level at $133.81 with a weekly risky level at $140.86.

Newmont Mining ( NEM) ($25.98) beat EPS estimates by 14 cents earning 46 cents a share in afterhours trading on Thursday. The hold rated gold miner declined to $25.88 on Friday vs. its multi-year low at $25.33 set on Oct. 15. My weekly value level is $23.65 with its 50-day SMA at $28.49 and my quarterly risky level at $40.50.

Ryland Group ( RYL) ($39.20) matched EPS estimates earning 96 cents a share in afterhours trading on Tuesday. The stock closed at $44.56 on Tuesday and gapped lower on Wednesday trading down to a week's low at $38.32 below its 200-day SMA at $40.33. The sell rated homebuilder has a semiannual value level at $33.71 with a weekly risky level at $44.29.

Standard & Pacific ( SPF) ($7.62) missed EPS estimates by 2 cents earning 10 cents a share in afterhours trading on Thursday. The sell rated homebuilder was on the cusp of its 200-day SMA at $8.29 on Wednesday and plunged to $7.62 below its 50-day SMA at $7.76. My semiannual value level is $7.58 with a weekly risky level at $8.30.

SunPower ( SPWR) ($30.87) beat EPS estimates by 9 cents earning 33 cents a share in afterhours trading on Wednesday. The buy rated solar panel maker gapped lower to $27.74 on Thursday staying above its 50-day SMA at $26.96 with my monthly risky level at $32.89.

Visa ( V) ($199.16) matched EPS estimates earning $1.85 a share in afterhours trading on Wednesday. The hold rated credit card company and new Dow component slipped to $194.26 on Oct. 31 with a semiannual value level at $172.20 and a monthly risky level at $204.71.

WellCare ( WCG) ($62.60) beat EPS estimates by 4 cents earning $1.56 a share premarket on Friday. The stock was below its 50-day SMA at $68.49 and traded down to a test of its 200-day SMA at $60.02. On this weakness the managed care services company was upgraded to buy from hold with a monthly pivot at $65.42 and semiannual risky levels at $69.44 and $72.05.

Exxon Mobil ( XOM) ($89.82) beat EPS estimates by 2 cents earning $1.79 in premarket trading on Thursday. The hold rated energy company and Dow component traded above its 200-day SMA at $89.59 to a high at $90.96 then fell to $88.27 on Friday before ending the week above the 200-day SMA. My semiannual value is $75.04 with a semiannual pivot at $89.50 and quarterly risky level at $102.39.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier is the chief market strategist at AlphaPlus Analytics in addition to 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

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