NEW YORK (TheStreet) -- Over the years there have been many arguments with regards to mixing fundamentals and technicals when buying and selling stocks. Discussions usually end with the fundamental analysts proclaiming "nobody can time the market," while market technicians cite all sorts methodologies to time when to buy and when to sell a stock by graphically presenting their strategy.
My methodology is quantitative using both the fundamentals according to www.ValuEngine.com and the daily and weekly charts using www.metastock.com/suttmeier. I also distill the oil and water of the mixing of fundamentals and technicals with my proprietary analytics which provide a value level at which to buy on weakness and a risky level at which to sell on strength.
On daily bar charts I use 21-day, 50-day and 200-day simple moving averages where I consider the 200-day as the "reversion to the mean." On weekly charts I use a five-week modified moving average and a 200-week SMA. Both charts have a momentum study called slow stochastics. The most important is the 12x3x3 weekly slow stochastic which scales 00.00 to 100.00. A reading below 20.00 is oversold and a reading above 80.00 is overbought. A rising stochastic is positive while a declining stochastic is negative.
International Business Machines (IBM) ($182.39) reported quarterly results afterhours Tuesday and revenue declined more than the expected 5.5%. Stock declined from $188.43 at Tuesday's close to a day's low of $179.67 on Wednesday. IBM remains buy-rated is 9.9% undervalued with a loss of 7.1% over the last 12 months.