Another double-digit year-to-date loser is OpenTable (OPEN) ($67.16), down 15.4%. Analysts expect the online restaurant reservation service to report EPS of 31 cents after the closing bell today. The stock traded as high as $85.87 on March 13. Then its momentum bubble popped, with the stock trading as low as $62.39 on April 28, staying just above its 200-week SMA at $61.91.
The weekly chart is negative with its five-week MMA at $73.13. We show semiannual and monthly risky levels at $72.76 and $74.04.
One more double-digit year-to-date loser is Mohawk Industries (MHK) ($132.41), down 11.1%. Analysts expect the maker of carpets to report EPS of $1.19 after the closing bell today. The stock set an all-time intraday high at $155.48 on Jan. 23, then traded as low as $128.54 on April 8. The stock is below its 200-day SMA at $134.86.
The weekly chart shifts to positive given a close this week above its five-week MMA at $135.71, as its weekly stochastic is rising. Semiannual value levels are $128.62 and $118.03, with monthly and quarterly risky levels at $157.20 and $159.50.
Note: Your investment policy among these stocks depends on whether or not you are a buyer on weakness or a seller of strength. We advocate using a GTC (good until cancelled) limit order to buy weakness to a value level or to sell strength to a risky level.
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 labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.
Interpretations: Stocks 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 declined to its 200-week SMA in June 2013.)
The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock 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 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.)