How to Trade Wednesday's Earnings Including Boeing, Procter & Gamble

NEW YORK (TheStreet) -- Boeing (BA) and Procter & Gamble (PG) headline a parade of large-cap companies reporting earnings before the bell Wednesday. Today we'll profile these companies' stocks, providing you with information on how to trade them.

When we profile stocks before earnings we include two "Crunching the Numbers" tables (see Pages 3 and 4). The first table covers technical analysis. The second table covers analysts' earnings per share estimates and where to buy on weakness and sell on strength.

Let's start with individual profiles and then look at the tables.

Boeing ($127.82, down 6.1% year to date): Analysts expect the airplane manufacturer and Dow Jones Industrial Average component to report EPS of $1.54 before the opening bell Wednesday. The stock tested its 200-day simple moving average at $123.08 last Monday through Wednesday.

The weekly chart is positive with a five-week modified moving average at $126.75. Semiannual and annual value levels are $123.73 and $102.41, respectively, with a quarterly pivot at $128.41 and a monthly risky level at $145.53.

Delta Air Lines (DAL) ($33.94, up 24% YTD): Analysts expect the airline to report EPS of 29 cents before the opening bell Wednesday. The airline reached an altitude never seen before at $36.52 on April 2 then hit an air pocket as low as $30.54 on April 15.

The weekly chart shifts to negative given a close this week below its five-week MMA at $33.28. A quarterly value level is $31.77 with weekly and monthly risky levels at $35.71 and $36.39, respectively.

Dow Chemical (DOW) ($48.75, up 9.8% YTD): Analysts expect the provider of chemicals, plastics and agricultural products to report earnings per share of 70 cents before the opening bell Wednesday. The stock set a multiyear intraday high at $50.96 on March 25 then traded as low as $46.56 on April 15.

The weekly chart shifts to negative on a close this week below its five-week MMA at $48.05. Semiannual and quarterly value levels are $40.69 and $40.20 with a semiannual pivot at $48.45 and weekly and monthly risky levels at $50.45 and $51.66.

Brinker International (EAT) ($50.64, up 9.3% YTD): Analysts expect the parent of eateries such as Chili's and Macaroni Grill to report EPS of 84 cents before the opening bell Wednesday. The stock set an all-time intraday high at $55.45 on Feb. 28 then traded as low as $49.91 on April 11.

The weekly chart is negative with its five-week MMA at $50.94. The chart pattern clearly shows a bubble that's ready to pop. Semiannual value levels are $47.64 and $38.55 with weekly and quarterly risky levels at $52.42 and $54.01, respectively.

EMC (EMC) ($26.93, up 7.1% YTD): Analysts expect the provider of hardware and software storage products to report EPS of 27 cents before the opening bell Wednesday. The stock set a 52-week intraday high at $28.26 on March 26 then fell as low as $26.21 on April 17.

The weekly chart shifts to negative given a close this week below its five-week MMA at $26.74 with its 200-week SMA at $24.66. Monthly and annual value levels are $24.93 and $22.50, respectively, with an annual pivot at $26.32 and weekly and semiannual risky levels at $28.52 and $30.34, respectively.

Federal Mogul (FDML) ($17.90, down 9.0% YTD): Analysts expect the provider of power-train components to the automotive industry to report EPS of 31 cents before the opening bell Wednesday. The stock popped as high as $23.62 on Jan. 8 then traded as low as $15.17 on Feb. 5, holding its 200-day SMA. Today the stock is just above its 200-day SMA at $17.64.

The weekly chart shifts to positive given a close this week above its five-week MMA at $17.92. The 200-week SMA is at $15.60. A semiannual value level is $13.78 with weekly and semiannual risky levels at $18.49 and $21.10, respectively.

General Dynamics (GD) ($109.30, up 14% YTD): Analysts expect the defense contractor to report EPS of $1.63 on Wednesday. The stock set an all-time intraday high at $113.57 on March 4 then traded as low as $104.22 on April 14.

The weekly chart shifts to negative given a close this week below its five-week MMA at $107.20 as the chart pattern appears parabolic. Annual and quarterly value levels are $95.80 and $93.53, respectively, with a monthly pivot at $108.73.

Johnson Controls (JCI) ($47.38, down 7.6% YTD): Analysts expect the provider of automotive systems to report EPS of 65 cents before the opening bell Wednesday. The stock set an all-time intraday high at $52.50 on Jan. 13 then traded as low as $43.85 on Feb. 3. The stock tested its 200-day SMA at $45.50 on April 15.

The weekly chart is neutral with its five-week MMA at $47.25. Weekly and quarterly value levels are $44.65 and $43.98, respectively, with a semiannual pivot at $47.15 and a monthly risky level at $53.16.

Northrop Grumman (NOC) ($122.21, up 6.6% YTD): Analysts expect the defense contractor to report EPS of $2.15 before the opening bell Wednesday. The stock set an all-time intraday high at $126.00 on April 4 then traded as low as $116.11 on April 15.

The weekly chart shifts to negative on a close this week below its five-week MMA at $120.46 as the chart profile has gone parabolic. Quarterly and semiannual value levels are $118.34 and $97.58, respectively, with a weekly pivot at $122.16 and monthly risky level at $131.42.

Norfolk Southern (NSC) ($96.89, up 4.4% YTD): Analysts expect the railroad to report EPS of $1.14 before the opening bell Wednesday. The stock set an all-time intraday high at $98.12 on April 4 then dipped as low as $91.91 on April 16.

The weekly chart shifts to negative given a close this week below its five-week MMA at $95.04. Semiannual and quarterly value levels are $93.26 and $92.28, respecitvely, with semiannual and weekly risky levels at $99.03 and $99.73, respectively.

Owens Corning (OC) ($42.85, up 5.2% YTD): Analysts expect the provider of building materials to report EPS of 35 cents before the opening bell Wednesday. The stock set an all-time intraday high at $46.64 on March 4 then traded as low as $39.71 on April 15 holding its 200-day SMA at $39.81.

The weekly chart shifts to negative on a close this week below its five-week MMA at $42.33. Monthly and quarterly value levels are $40.84 and $40.09, respectively, with semiannual risky levels at $43.96 and $53.46.

Procter & Gamble ($81.56, up 0.2% YTD): Analysts expect the consumer packaged-goods company to report EPS of $1.02 before the opening bell Wednesday. The stock set an all-time intraday high at $85.82 on Nov. 25 then traded as low as $75.26 on Jan. 31. The stock was below its 200-day SMA at the low and moved back above it at $80.06 on March 31.

The weekly chart is positive with the five-week MMA at $80.23. Monthly and annual value levels are $78.89 and $78.14, respectively, with an annual pivot at $80.32 and semiannual risky level at $82.85.

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 titled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: Stocks trading 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. (Even Apple (AAPL) declined to its 200-week SMA in June 2013)

The 21-Day Simple Moving Averageis a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock trading 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 level, and I consider this level as a shorter-term "reversion to the mean" over a rolling six- to 12-month horizon. (Even Apple tested or crossed its 200-day SMA in nine of the last 10 years)

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 its 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-'til-canceled 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.

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

More from Opinion

12 Stocks That Our Writers and Their Sources Recommend You Buy Here

12 Stocks That Our Writers and Their Sources Recommend You Buy Here

Musk Goes on Unoriginal Media Tirade

Musk Goes on Unoriginal Media Tirade

What's Happening in Video Games This Week: On the Road to E3

What's Happening in Video Games This Week: On the Road to E3

Wednesday Wrap-Up: Let's Talk About General Electric

Wednesday Wrap-Up: Let's Talk About General Electric

Week of the Women From Finance to Fast Food

Week of the Women From Finance to Fast Food