Adobe, FedEx Hit All-Time Highs on Strong Earnings

NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE)  and FedEx (FDX) have surged to all-time highs as both companies reported better-than-expected quarterly results this week.

Adobe ($73.08) rose 8% on Wednesday after the software company reported fiscal second-quarter earnings of 23 cents a share after the bell on Tuesday, topping analysts' average estimate by 7 cents. The company's cloud-computing initiatives to an all-time intraday high at $74.69 on Wednesday as detailed in The Street.

Shares of package-delivery company FedEx ($148.95) soared to their highest altitude ever after the company reported fiscal fourth-quarter earnings of $2.46 a share early Wednesday, topping estimates by 10 cents. The company reported increased shipping volume in its FedEx Ground segment. The stock set an all-time intraday high at $149.37 on Wednesday, as covered by TheStreet.

The performances should not have been a surprise to readers of my past posts covering these companies, including my positive technical profile on FedEx on May 23.

Courtesy of MetaStock Xenith

The weekly chart for FedEx shows that the stock is becoming overbought with a 12x3x3 weekly slow stochastic reading moving above 80.00 on a scale of 00.00 to 100.00, where a reading above 80.00 is overbought. The stock is well above its five-week modified moving average now at $141.42 vs. $136.68 on May 23.

What is an issue for the stock is that it has gapped above quarterly, weekly, monthly and semiannual risky levels. It now pivots at $142.30, $145.08, $146.82 and $148.81. Annual value levels lag at $97.95 and $93.02.

With regard to Adobe it was one of the nine stocks I profiled on Monday. The stock is up 9.4% since then.

Courtesy of MetaStock Xenith

The weekly chart for Adobe shows rising a 12x3x3 weekly slow stochastic reading with the stock solidly above its five-week modified moving average at $66.14, up from $64.40 on Monday.

Weekly and semiannual value levels are $63.53 and $62.44 with a quarterly pivot at $72.23 and monthly risky level at $75.53.

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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

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